SOURCE: Ithaca Energy Inc

October 11, 2012 02:00 ET

Ithaca Energy Inc - Bank Syndication Closure

ABERDEEN, SCOTLAND--(Marketwire - Oct 11, 2012) -


TSX-V:IAE


Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States


                         Ithaca Energy Inc.

     Closure of Oversubscribed US$430M Debt Facility Syndication
                         11th October 2012


Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) announces that the
underwritten debt facility executed with BNP Paribas ("BNPP") in June
2012 has been successfully syndicated by BNPP, bringing six other
leading international banks into the facility.


Highlights

o The Company has agreed and signed a US$430 million facility with
  BNPP, as Bookrunner and Mandated Lead Arranger, and six other highly
  experienced banks working in the international oil and gas sector.

o The facility was oversubscribed during syndication, underlining the
  value of the Company's existing asset portfolio and development
  execution strategy.

o The facility is available to fund ongoing development activities and
  future asset acquisitions.

A Senior Secured Borrowing Base Facility Agreement was executed with
BNPP in June 2012 for the provision of a US$400 million underwritten
debt facility, plus US$30 million cost overrun tranche. The subsequent
syndication process run by BNPP, as Bookrunner, was oversubscribed and
resulted in the Company securing agreement for a US$430 million
facility.

The seven banks participating in the facility syndicate are:

o BNP Paribas and Lloyds TSB Bank plc (as Bookrunners and Mandated
  Arrangers);

o Bank of America N.A., Deutsche Bank AG, The Bank of Nova Scotia and
  The Royal Bank of Scotland (as Mandated Lead Arrangers); and,

o NIBC Bank N.V. (as Manager).

The facility, combined with an existing cash balance US$132 million
(end Q2-2012) and the Company's projected cashflow from operations
profile, means that Ithaca has the financial capacity to continue
delivering material growth from both its existing asset portfolio and
from new additions.


Graham Forbes, Chief Financial Officer, commented:"It is very pleasing to
close an over subscribed bank syndication
process with such a leading group of experienced banks in the sector.
We thank them for their support and look forward to working together as
we grow the Company."



Enquiries:

Ithaca Energy:
Iain McKendrick, CEO   imckendrick@ithacaenergy.com  +44 (0) 1224 650 261
Graham Forbes, CFO     gforbes@ithacaenergy.com      +44 (0) 1224 652 151

FTI Consulting:
Billy Clegg       billy.clegg@fticonsulting.com      +44 (0) 207 269 7157
Edward Westropp   edward.westropp@fticonsulting.com  +44 (0) 207 269 7230
Georgia Mann      georgia.mann@fticonsulting.com     +44 (0) 207 269 7212

Cenkos Securities plc:
Jon Fitzpatrick   jfitzpatrick@cenkos.com            +44 (0) 207 397 8900
Ken Fleming       kfleming@cenkos.com                +44 (0) 131 220 6939

RBC Capital Markets:
Tim Chapman       tim.chapman@rbccm.com              +44 (0) 207 653 4641
Matthew Coakes    matthew.coakes@rbccm.com           +44 (0) 207 653 4871

BNP Paribas:
Xavier Venereau   xavier.venereau@bnpparibas.com     +33 (0) 1 4316 8212
Nick Beattie      nick.beattie@uk.bnpparibas.com     +44 (0) 207 595 4534
Sue Mingay        sue.mingay@uk.bnpparibas.com       +44 (0) 207 595 3455


About Ithaca Energy:

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) and its wholly owned
subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is
an oil and gas operator focused on production, appraisal and
development activities on the United Kingdom Continental Shelf. The
goal of Ithaca, in the near term, is 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
expressions, and the negatives thereof, whether used in connection with
production and operation activities or otherwise are intended to
identify forward-looking statements. 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.



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