Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

December 02, 2010 02:00 ET

Ithaca Energy Inc.-Athena Field: Flowline Installation and FPSO Mooring System Contract Awarded

LONDON, UNITED KINGDOM and CALGARY, CANADA--(Marketwire - Dec. 2, 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 contracts for the installation of subsea equipment and the installation of the FPSO mooring system for the Athena development has been awarded to Bibby Offshore Limited ("Bibby Offshore"). The contracts were awarded after an extensive tendering exercise with bids being received from a number of installation contractors active within the North Sea.

For the subsea installation contract, Bibby Offshore will install subsea manifolds, flowlines, power cables and umbilicals between the subsea wellheads and the floating production, storage and offloading ("FPSO") vessel 'BW Athena'. This work includes both the 2km seabed sections (which will be trenched) and the dynamic riser sections leading to the buoy connecting the system to the FPSO.

For the FPSO mooring system contract, Bibby Offshore will install an APL STP Buoy. The STP Buoy is a mooring line tethered buoy utilised to locate the FPSO at the Athena site. This work includes the installation of nine suction piles, and associated anchor lines.

Notes:

The initial development consists of four production wells supported by one water injection well. Production will be routed via the subsea manifold and a two kilometre, 8 inch flowline to the FPSO. Oil production will be exported via shuttle tankers. Produced gas will be used to generate power on the FPSO.

On September 9, 2010, the Company announced the award of two major contracts; the provision of an FPSO and the provision of a semi-submersible drilling rig.

On September 20, 2010, The Company received Field Development Plan approval from the Department of Energy and Climate Change. First production from the field is planned for Q3 2011.

The Athena Joint Venture Partners are Ithaca (operator, 22.5%), Dyas UK Ltd (47.5%), EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%).

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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