Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

October 18, 2010 02:00 ET

Ithaca Energy Inc.: Beatrice Alpha Initial Workover Results

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Oct. 18, 2010) -

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

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, is pleased to announce stable production from the first workover well on Beatrice Alpha has increased by 100% to 680 barrels of oil per day ("bopd") gross (340 bopd net to Ithaca), in line with expectation.

The Beatrice Alpha well A04 is part of a five well work over programme. Operations on the A04 well involved the replacement of a downhole pump.

Activities have commenced to workover the second well of the five well campaign (Beatrice Alpha well A23). The A23 well was producing ~260 bopd gross (~130 bopd net to Ithaca) before being shut in early October to commence workover operations. A further production update will be provided after the well has been brought back on line and flow rates have stabilised.

Joint Venture Partners in the Beatrice Field are Ithaca (50%) and Dyas UK Ltd (50%).

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Chairman of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.

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," "anticipate," "plans," "may," "will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof, whether used in connection with the estimated production levels, actual production levels from well workover programs, anticipated timing of well workover programs., 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. 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 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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