Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

October 11, 2011 04:30 ET

Ithaca Energy Inc.: Athena Project Update

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Oct. 11, 2011) -

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

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) announces that it has met major scheduled milestones for the Athena project and on site subsea installation work and rig based operations are on schedule.

The Company will present the Athena project today at 9.30 a.m. in London; the presentation is available on the Company's website (www.ithacaenergy.com).

Key milestones achieved:

  • The drilling rig, Sedco 704, has now successfully completed four of the five development wells for production. The fifth and final well will finish in mid October after which the rig will be demobilised.
  • Installation of the FPSO mooring system, riser base and subsea manifold have been completed utilising the Boa Deep C construction support vessel all of which are fundamental for the hook up between the BW Athena Floating Production Storage and Offtake ("FPSO")and the subsea facilitiesvessel.
  • All topsides equipment on the BW Athena FPSO has been installed. Mechanical completion will occur in October and commissioning will commence.

Forward plan:

  • Installation of the subsea flowlines and umbilicals is underway and will be completed during October by the Boa Deep C and the subsea facilities will then be hooked up utilising the Bibby Topaz DSV (Dive Support Vessel).
  • The vessel will leave Dubai around mid November to arrive in the field in December. The transit will take approximately 20 days and involves passage through the Suez Canal.
  • The start up procedure in the field will take approximately 14 days to complete. This involves securing the vessel over the STP buoy, final hook up and commissioning of all surface and subsea systems.
  • The Company continues to exercise tight control over remaining aspects of overall work programme. Potential risks remain to the schedule of adverse weather conditions or unexpected start-up procedure and commissioning delays

The project remains within budget and first oil is anticipated in Q4 2011.

About Ithaca Energy:

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf ("UKCS"). to maximize production and achieve early production from the development of existing discoveries on properties held by Ithaca, to originate and participate in exploration and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth as they are identified from time to time by Ithaca.

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 "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target" and similar e whether used in connection with the estimated production levels of the Athena field, anticipated time of first oil from the Athena field or reserves associated with the Athena field are intended to identify forward-looking statements. The reserves for individual properties may not reflect the same confidence level as estimates of reserves of all properties, due to the effects of aggregation. Such statements are not promises or guarantees, and are subject to known and unknown risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward -looking statements or information. 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.

The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither TSX Venture Exchange 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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