Ithaca Energy Inc.
LSE : IAE

Ithaca Energy Inc.

March 22, 2011 03:00 ET

Beatrice Area Production and Operational Update

FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

March 22, 2011

Beatrice Area Production and Operational Update

LONDON, UNITED KINGDOM and CALGARY, CANADA--(Marketwire - March 22, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) announces today that drilling of the J03 well on Jacky has been
temporarily suspended due to mechanical issues on the Energy Enhancer jack-up drilling unit. Additionally, the
Beatrice Alpha workover well, A28, is now anticipated to return to stable production in early April.

The drilling unit has been positioned over the Jacky platform to drill well 12/21c-J03 ("the well" or "J03").
Mechanical issues relating to cementing of the initial casing section and the drilling mud handling system
occurred onboard the Energy Enhancer during the drilling of the 'top hole section' section of the well.
Production from the existing Jacky well J01 (and Beatrice Bravo), was temporarily suspended, as is normal
practise during the early phase of drilling, but given additional issues with the rig, production was suspended
for an extended period totalling 22 days. Production from J01 has been reinstated today while certain rig
equipment is repaired. The rig has been on zero day rate and will remain so until the repair is complete.
Drilling is scheduled to recommence in approximately 7 days, after which operations are approximately scheduled
to last a further 60 days.

In addition, at Beatrice Alpha, production start up from work over well A28 has been delayed to allow the
completion to be re-run following failure of a downhole packer. The A28 well is now expected to commence
flowing and stabilise in early April.

The suspension of production at Jacky and the later commencement of A28 reinstatement are together anticipated
to reduce forecast Ithaca net production for Q1 2011 by approximately 20%. However, management estimate 2011
net average production for the Company is still expected to be between 5,500 and 6,000 barrels of oil
equivalent per day, subject to successful well interventions at Beatrice, a successful Jacky J03 well and first
oil from the Athena field in Q4 2011.

Notes to oil and gas disclosure:

In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham), PhD Hydrogeology (London) and
senior petroleum engineer at Ithaca Energy is the qualified person that has reviewed the technical information
contained in this press release. Dr Morel has 30 years operating experience in the upstream oil industry.

About Ithaca Energy:

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is
an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf
("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the
development of existing discoveries on properties held by Ithaca, to originate and participate in exploration
and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth
as they are identified from time to time by Ithaca.

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements
regarding the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to
various matters. When used in this announcement, the words "expects," "believes," "anticipate," "plans," "may,"
"will," "should," "scheduled," "targeted," "estimated" and similar expressions, and the negatives thereof,
whether used in connection with the estimated drilling times of the Jacky, J03 well, estimated production
levels from existing and future development projects including the Jacky, J03 well, actual production levels
from existing and future development projects, anticipated timing of the Jacky, J03 well and the Athena
development, oil in place, hydrocarbon composition or otherwise, are intended to identify forward-looking
statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that
could cause actual outcome to differ materially from those suggested by any such statements. These forward-
looking statements speak only as of the date of this announcement. Ithaca Energy Inc. expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in its expectations with regard thereto or any change in events,
conditions or circumstances on which any forward-looking statement is based except as required by applicable
securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy:
Nick Muir
CXO
+44 (0) 1224 650 267
nmuir@ithacaenergy.com

OR

Pelham Bell Pottinger Public Relations:
Philip Dennis
+44 (0) 207 861 3919
pdennis@pelhambellpottinger.co.uk

OR

Pelham Bell Pottinger Public Relations:
Elena Dobson
+44 (0) 207 861 3147
edobson@pelhambellpottinger.co.uk

OR

Cenkos Securities plc:
Jon Fitzpatrick
+44 (0) 207 397 8900
jfitzpatrick@cenkos.com

OR

Cenkos Securities plc:
Ken Fleming
+44 (0) 131 220 6939
kfleming@cenkos.com

Neither TSX Venture Exchange nor it's Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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