SOURCE: Ithaca Energy Inc

October 20, 2015 16:15 ET

Ithaca Energy Inc. Completion of Premium Equity Placing - Investment by Delek Group

ABERDEEN, SCOTLAND--(Marketwired - Oct 20, 2015) - Ithaca Energy Inc. (TSX: IAE) (LSE: IAE) -- Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") reports that it has completed the previously announced US$66 million equity investment in the Company by DKL Investments Limited ("DKL"), a wholly owned subsidiary of Delek Group Ltd. ("Delek").

The investment was completed via a non-brokered private placement of 81,865,425 Common Shares in the capital of the Company (the "Placing") at CAD$1.05 per share (the "Placing Price"), equivalent to £0.53 per share. This represents a 19% premium to the CAD$0.88 per share closing price on the Toronto Stock Exchange ("TSX") on 8 October 2015, the day prior to announcement of the Placing. As of the same date, the Placing Price represents a 39% premium to the 5 day volume weighted average price ("VWAP") and a 51% premium to the 30 day VWAP.

Following completion of the Placing, the Company has 411,384,045 Common Shares issued and outstanding, with one voting right per Common Share. This represents all the outstanding voting securities of the Company. On a fully diluted basis the Company has 432,837,265 Common Shares in issue, which includes 21,453,220 Common Shares under option.

Application has been made to the London Stock Exchange for the 81,865,425 Common Shares issued to DKL to be admitted to trading on AIM. Admission of the shares is expected to occur on 21 October 2015.

In accordance with the terms of the Investment Agreement entered into between the Company and DKL, DKL has nominated Mr Joseph Asaf Bartfeld, President & Chief Executive Officer of Delek, and Mr Yosef Abu, Chief Executive Officer of Delek Drilling Ltd. as Non-Executive Directors and members of the Ithaca Board of Directors with immediate effect (subject to standard TSX procedures with respect to the approval of these Non-Executive Directors).

AIM Schedule 2 Information
In relation to the appointment of Mr Bartfeld and Mr Abu as Non-Executive Directors, Ithaca confirms that there is no further information to be disclosed under paragraph (g) of Schedule 2 of the AIM Rules for Companies save as disclosed below:

Full Name   Joseph Asaf Bartfeld
Age   63
Current Directorships / Partnerships in last 5 years:   Delek Energy Systems
Cohen Development and Industrial Buildings
Delek the Israeli Fuel Corporation Ltd.
Delek Automotive Systems Ltd.
Delek Petroleum Ltd.
Anver Oil Exploration LP (Director in the General Partner)
Delek Drilling LP (Director in the General Partner)
The Phoenix Holdings Ltd.
Gadot Biochemical Industries
Delek Finance US Inc
Delek Sea Maagan 2011 Ltd
Israel Delek Holdings Group Ltd.
IPP Delek Ashkelon Ltd.
IDE Technologies Ltd.
Delek Motors Ltd
Avner Oil and Gaz Ltd.
Delek Drilling Management (1993) Ltd.
Delek Drilling (Tamar Bridging) Ltd. (voluntary liquidation)
Delek Drilling (Leviathan Bridging) Ltd.
Delek Drilling (Tamat Financing) Ltd. (voluntary liquidation)
Avner Oil Exploration (Tamar Bridging) Ltd. (voluntary liquidation)
Avner Oil Exploration (Leviathan Bridging) Ltd.
Avner Oil Exploration (Tamat Financing) Ltd. (voluntary liquidation)
Delek Royalties (2012) Ltd.
Previous Directorships / Partnerships
in last 5 Years:
  Delek US Holdings Inc
Republic Companies Inc
Delek Infrastructures Ltd.
Delek and Avner Yam Tethys Ltd.
Details of receiverships, compulsory liquidations, creditors' voluntary liquidations, administrations, company voluntary arrangements etc.   Delek Europe Holdings Ltd (voluntary liquidation)
Delek Drilling (Tamar Bridging) Ltd. (voluntary liquidation)
Delek Drilling (Tamat Financing) Ltd. (voluntary liquidation)
Avner Oil Exploration (Tamar Bridging) Ltd. (voluntary liquidation)
Avner Oil Exploration (Tamat Financing) Ltd. (voluntary liquidation)
Full Name   Yosef Abu
Age   37
Current Directorships / Partnerships
in last 5 years:
  Yam Tethys Ltd.
Delek Drilling (leviathan Financing) Ltd.
Delek & Anver (Tamar Bond) Ltd.
Arad-Shaked Strategy and Investments Ltd.
Previous Directorships / Partnerships
in last 5 Years:
  Avner Oil Exploration (Tamar Financing) Ltd.
Avner Oil Exploration (Tamar Bridging) Ltd.
Delek Drilling (Tamar Financing) Ltd.
Delek Drilling (Tamar Bridging) Ltd.
Details of receiverships, compulsory liquidations, creditors' voluntary liquidations, administrations, company voluntary arrangements etc.   Avner Oil Exploration (Tamar Financing) Ltd. (voluntary liquidation)
Avner Oil Exploration (Tamar Bridging) Ltd. (voluntary liquidation)
Delek Drilling (Tamar Financing) Ltd. (voluntary liquidation)
Delek Drilling (Tamar Bridging) Ltd. (voluntary liquidation)

About Ithaca Energy
Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries and the exploitation of its existing UK producing asset portfolio. Ithaca's strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company's website www.ithacaenergy.com.

About Delek
The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets.

Forward-looking statements
Some of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, construction and maintenance times, well completion times, risks associated with operations, future capital expenditures, continued availability of financing for future capital expenditures, regulatory approval requirements, future acquisitions and dispositions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. When used in this press release, the words and phrases like "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target", "in the process of" and similar expressions, and the negatives thereof, whether used in connection with operational activities, the expected admission for trading of the Common Shares issued under the Placing, and other planned transactions and arrangements to be completed under the Investment Agreement and the receipt of regulatory and other approvals therefor, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release. 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. 

Additional information on these and other factors that could affect Ithaca's operations and financial results are included in the Company's Management's Discussion and Analysis for the quarter ended June 30, 2015, and the Company's Annual Information Form for the year ended December 31, 2014 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements thereof. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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