Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

September 09, 2010 02:00 ET

Ithaca Energy Inc.: Athena Field Development Contracts Awarded

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Sept. 9, 2010) -

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Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or the "Company"), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, announces that the contract for provision of a floating production facility and the letter of award for provision of a semi-submersible drilling rig have been awarded for the Athena development.

The Athena Field is situated in Block 14/18b in the Outer Moray Firth area of the United Kingdom Continental Shelf. Ithaca operates the field with a 22.5% interest. The other co-venturers in the field are Dyas UK Ltd (47.5%), EWE Aktiengesellschaft AG (20%) and Zeus Petroleum Limited (10%).

The field will be developed using a floating production, storage and offloading ("FPSO") vessel, and a contract has been signed with BW Offshore Limited to provide the BW Carmen (to be renamed 'BW Athena'). The contract will have a minimum term of 3 years (extendable for up to 8 years) and includes modifying the vessel and deploying it to a fixed mooring at the Athena field. The vessel will be mobilised to the Athena field at the end of Q3 2011. Offloading of produced oil will be by tandem moored shuttle tankers.

Previously the field has been appraised and three of the suspended appraisal wells will be completed for production (using downhole pumps) along with one new production well and one new water injector. A letter of award has been signed with Applied Drilling Technology International ("ADTI") (a subsidiary of Transocean Ltd.) for provision of drilling management services and for the supply of the Sedco 704 semi-submersible drilling rig. The rig will be available from the end of 2010 and the drilling and completion programme is expected to last approximately 180 days.

Both the FPSO contract and drilling letter of award are subject to Field Development Plan approval which is expected within approximately 3 weeks.

Contracts for the subsea equipment (moorings, flowlines, controls, power cables, pumps and meters) will be placed over the coming weeks.

John Woods, Chief Developments Officer, commented:

"We are delighted to have awarded these two critical contracts for drilling and production at the Athena Field. We are committed to a robust development of the field and confident that our chosen suppliers will deliver the quality of service that will ensure timely and effective execution of the Athena project plan. Our coventurers have been very supportive in getting these contracts agreed to and awarded, at the same time as the Field Development Plan is in the final stages of approval".

Forward-looking statements:

Some of the statements in this press release 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, including, without limitation, the development of the Athena project, estimates of oil and gas reserves and associated future production in connection with the Athena project. When used in this press release, 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 production levels, anticipated time of first oil, 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, including the risk that the Athena project may not be developed in the anticipated time frame and the risk that the future benefits and anticipated production by the Company are not realized.. 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.

Neither TSX Venture nor its 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.

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