Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

November 23, 2007 09:49 ET

Ithaca Energy Announces Closing of $100 Million Financing

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Nov. 23, 2007) -

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

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE), a Canadian independent oil and gas company with exploration and development assets in the UK North Sea, is pleased to announce the closing of its previously announced "bought deal" financing. Ithaca has sold to a syndicate of underwriters 27,400,000 common shares at a price of CAD $3.65 per common share for gross proceeds of CAD $100,010,000. The syndicate was led by RBC Capital Markets and CIBC World Markets Inc. and included Research Capital Corporation, Tristone Capital Inc. and Fraser Mackenzie Limited. The underwriters have been granted an over-allotment option to purchase up to an additional 4,110,000 common shares on the same terms and conditions of this offering, exercisable in whole or in part up to 30 days following closing of the financing.

Ithaca intends to use the net proceeds of this offering to fund development of its Athena and Jacky oil projects, exploration on its UK exploration assets and to fund general working capital. The common shares issued pursuant to this offering will commence trading on the TSX Venture Exchange today.

Ithaca has made an application to the London Stock Exchange for 27,400,000 new shares to be admitted to trading on AIM and admission is expected to take place on November 26, 2007. Following the issue of these shares, the total number of shares in issue will be 111,704,475.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.

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", "anticipates", "plans", "may", "will", "should" and similar expressions, and the negatives thereof, 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, unless there is a material change in relation to any previously announced profit forecasts, estimates or projections as required under the AIM Rules for Companies.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ithaca Energy Inc.
    Lawrie Payne
    In London:
    Office: +44(0) 20 7590 3027
    Mobile: +44(0)7841 678668
    or
    Ithaca Energy Inc.
    Brad Gunn
    In London:
    +44(0) 20 7590 3026 or Mobile: +44(0)7920 019355
    In Calgary:
    (403) 668-9599 or Mobile: (403) 389-4107
    or
    Nabarro Wells & Co. Limited
    Marc Cramsie
    +44(0) 20 7710 7400
    or
    Nabarro Wells & Co. Limited
    David Nabarro
    +44(0) 20 7710 7400
    or
    Pelham Public Relations
    Charles Vivian
    Office: +44(0) 20 7743 6673
    Mobile: +44(0)7977297903
    or
    Pelham Public Relations
    Philip Dennis
    Office: +44(0) 20 7743 6363
    Mobile: +44(0)7947868206