Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

January 10, 2011 02:00 ET

Ithaca Energy Inc. Fourth Quarter 2010 Production and Operational Update

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Jan. 10, 2011) -

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, announces that combined production in the fourth quarter averaged 8,754 barrels of oil equivalent per day ("boepd") gross (4,148 boepd net to Ithaca). This figure includes a minor contribution from the recently acquired Anglia and Topaz fields, the transaction for which completed on December 17th 2010.

The Company's average daily sales volumes for the period are summarised as follows:

  Gross (boepd) Net to Ithaca (boepd)
     
Average Q4 2010 8,754 4,148
October 9,191 4,426
November 8,040 3,881
December 9,009 4,129

The average realised price for oil production from Beatrice and Jacky in October was $83.826 per barrel and in November was $89.856 per barrel (before hedging and any additional price uplift at the point of sale to a third party). Deliveries for December are currently being priced; gas pricing figures for Anglia and Topaz will be included in future updates.

Overall average daily production for 2010 of 4,529 boepd is approximately in line with the management forecast stated in the Management Discussion & Analysis section of the Company's Third Quarter 2010 Financial Results. 

During the first quarter of 2011 several ongoing activities are anticipated to have a positive impact on production levels at Beatrice and Jacky. These projects include:

  • Sustained incremental injection of water into the Beatrice reservoirs
  • Completion of the Beatrice Alpha well workover campaign including the installation of downhole pumps in two Alpha production wells
  • Intervention to restore pumped production from Bravo well, B1

Current average daily production levels for the Company exceed 4,400 boepd, being the target for the first quarter.

As previously announced, management anticipates net average production for 2011 to be between 5,500 to 6,000 boepd net to Ithaca. Sustaining this level of production will be subject to successful well and facilities interventions across the Beatrice Complex and takes into account a successful second production well at Jacky as well as first oil from the Athena Field in Q4 2011.

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.

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 "expects," "believes," "anticipates," "plans," "may," "will," "should", scheduled, targeted, estimated and similar expressions, and the negatives thereof, whether used in connection with estimated production levels, anticipated drilling operations and results therefrom, 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.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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