Ithaca Energy Inc.
LSE : IAE

Ithaca Energy Inc.

June 09, 2008 13:04 ET

Drilling Report

FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

June 9, 2008

Ithaca Energy: Work Begins on Next Athena Development Well

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - June 9, 2008) -

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

Ithaca Energy Inc. ("Ithaca Energy") (TSX VENTURE:IAE) (AIM:IAE) and its wholly owned subsidiary Ithaca Energy
(UK) Limited announces that, on behalf of the Athena Joint Venture Partners, it has commenced drilling the
Athena 'D' development well in the core area of the field in UKCS block 14/18b. The work is being conducted by
the Stena Spey drilling rig as part of a multi-client work programme being managed by Senergy Ltd.

The well was spudded on 6th June and operations are expected to continue for about 50 days. After evaluation is
complete, casing will be run and the well suspended for future completion as a production well. Completion
activities are likely to be in late 2009 when the well will have a submersible pump fitted to increase
production rates.

Ithaca Energy (UK) Ltd. holds a 70% interest in the Athena development along with its partners Ewe
Atingellinschaft (20%) and Zeus Petroleum (10%). The field will be developed as a subsea tie-back to a stand
alone production facility.

As announced on May 29th, 2008, Ithaca has an exclusivity agreement in place with Bluewater Energy Services BV
to negotiate the provision of a Floating Production, Storage and Offloading vessel (FPSO) in late 2009 to
process produced fluids from the field.

John Woods, Chief Development Officer said "With the FPSO development scheme now underway, this well will be an
important milestone for meeting our timeline to delivering Athena first oil in late 2009."

READER ADVISORY

This news release contains certain forward-looking statements, including all statements which address
activities, events or developments that Ithaca Energy expects, believes or anticipates will or may occur in the
future. Such forward looking statements involve substantial known and unknown risks and uncertainties, certain
of which are beyond Ithaca Energy's control and which are based on various assumptions (including assumptions
with respect to (i) availability of funds; and (ii) future capital expenditures) which may prove incorrect.
Such risks and uncertainties include, without limitation the impact of general economic conditions in the areas
in which Ithaca Energy operates, civil unrest, industry conditions, changes in laws and regulations and changes
in how they are interpreted and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market
volatility and obtaining required approvals of regulatory authorities. Please refer to the company's Annual
Information Form for the year ended December 31st, 2007 and dated April 30th, 2008 and available for viewing at
www.sedar.com, for a list of additional risk factors. Ithaca Energy's actual results, performance or
achievements could differ materially from those expressed in, or implied by, these forward-looking statements
and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what benefits that Ithaca Energy will derive
therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-
looking statements, whether written or oral, attributable to Ithaca Energy or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking
statements contained in this news release are made as at the date of this news release and Ithaca Energy does
not undertake any obligation to update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as may be required by applicable
securities laws.

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and CEO of Ithaca
Energy is the qualified person that has reviewed the technical information contained in this press release.


-30-

FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy
Lawrie Payne
President and CEO
+44 (0) 207 590 3027
Email: lpayne@ithacaenergy.com

OR

Ithaca Energy
Steven Turner
Chief Financial Officer
+44 (0) 1224 638 582
Email: sturner@ithacaenergy.com

OR

Ithaca Energy
Iain McKendrick
Chief Operating Officer
+ 44 (0) 1224 650261
Email: imckendrick@ithacaenergy.com

OR

Pelham Public Relations
Charles Vivian
+44 (0) 207 743 6672
Email: charles.vivian@pelhampr.com

OR

Pelham Public Relations
Phillip Dennis
+44 (0) 207 743 6363
Email: philip.dennis@pelhampr.com

OR

Nabarro Wells & Co Limited
Marc Cramsie
+44 (0) 207 634 4705
Email: ithaca@nabarro-wells.co.uk

-0-

Contact Information

  • Ithaca Energy Inc.