Ithaca Energy Inc.

Ithaca Energy Inc.

March 18, 2008 13:42 ET

Ithaca Energy Completes the Drilling of Manuel

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - March 18, 2008) -


Ithaca Energy Inc. ("Ithaca" or the "Company") (TSX VENTURE:IAE)(AIM:IAE), of Calgary, Alberta, announces that its wholly-owned subsidiary, Ithaca Energy (UK) Limited, has completed the drilling of its second exploration well (11/29-1) near the Beatrice field in the inner Moray Firth area of the North Sea. The 11/29-1 well on the Manuel Prospect, reached a total depth of 8,147 ft TVDSS and is now being plugged and abandoned.

The well encountered oil saturated sands of Jurassic age of less than reservoir quality. Wireline logs have been run and MDT pressure and fluid sampling has been undertaken but no oil sample was recovered.

The well was drilled to target multiple reservoir sand units defined within a large stratigraphic closure known as the Manuel prospect lying 12 kilometres to the southwest of the Beatrice field. The prospect had been delineated using 2D seismic data which Ithaca complemented with its own seismic acquisition which was shot in November 2006. The results of this well will allow Ithaca to calibrate the existing seismic data and undertake a full technical work programme to determine future drilling locations.

Before drilling commenced, Ithaca had farmed out part of its interest, paying 52.5% of the dry hole costs of the well and retaining a 68.34% interest in the prospect. The other participants are Norwest 5%, Challenger Minerals 13.33% and North Sea Energy 13.33%.

Nick Muir, CXO, commented:

"While the well was commercially unsuccessful, information obtained from the well was highly encouraging. The well was drilled in an under-explored area. In fact, this was the first well on this block and the results obtained will help enormously to determine the focus of further exploration in this area."

Notes to Editors

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) is an independent oil & gas company with exploration and development assets in the UK North Sea. On November 30, 2007 Ithaca announced its intention to acquire Talisman Energy's 100% share in and take of operatorship of the Beatrice field which comprises UK Offshore Licenses P187, P982 and P1031 of the United Kingdom's Continental Shelf. The transaction is expected to complete in mid 2008.

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, other than as required by the AIM Rules for Companies.

In accordance with AIM Guidelines, Lawrie Payne, BA Economics (Alberta) and MA Marine Geology (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 news release.

Contact Information