Ithaca Energy Inc.

Ithaca Energy Inc.

February 11, 2010 07:00 ET

Ithaca Energy Inc.: Galaxy II Mobilises to Drill Stella Appraisal Well



February 11, 2010

Ithaca Energy Inc.: Galaxy II Mobilises to Drill Stella Appraisal Well

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Feb. 11, 2010) -


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 today that the Galaxy II heavy duty jack-up rig, contracted
by Ithaca to drill an appraisal well on the Stella field, has now come on hire and been mobilised to the spud
location and will commence drilling this month.

In November 2009, Ithaca Energy became operator of the rich gas-condensate, Stella field and two additional
discoveries, namely Hurricane and Harrier.  The Company has since contracted the Galaxy II drilling unit, owned
by Transocean, and the services of ADTI to manage appraisal well operations under 'turnkey' contract
arrangements. The well programme, which is scheduled to take around 79 days to complete, has been designed to
satisfy three primary objectives that will influence development. The primary objectives are as follows:

i) Confirm Ithaca's assessment of the in-place volume of hydrocarbons

ii) Understand changes in composition of hydrocarbon fluids with depth

iii) Verify the distribution and quality of the reservoir

The drilling schedule includes drill stem testing and a contingent sidetrack to ensure that the well objectives
are fully satisfied and field upside is appraised prior to development. A further update will be provided when
the initial bore has been completed and prior to commencement of any sidetrack.

The appraisal well is planned to reach total depth in the Cretaceous chalk layers which lie below the principal
Stella (Andrew) reservoir target. An earlier well (30/6-3Z) encountered hydrocarbons in the Ekofisk chalk
reservoir and tested further rich gas-condensate reserves which could be developed at the same time as the main

Timely development of Stella will allow the Company to consider the potential development of the neighbouring
Harrier and Hurricane discoveries as additional tiebacks to Stella in this prolific gas-condensate area.

As reported in October 2009, Challenger Minerals Inc. ("CMI") will pay 27% of gross Stella appraisal well costs
in exchange for an 18% equity interest in the Stella and Harrier discoveries, thereby carrying a part of
Ithaca's share of drilling costs and leaving Ithaca with a 50.33% interest. Upon successful appraisal, CMI will
also disproportionately fund a further Stella or Harrier development well.

The latest reserves report issued by Sproule International Limited for year ended December 31 2009, ascribed
Proved and Probable reserves to Stella (both Andrew and Ekofisk reservoirs) of 8.94 million barrels of oil
equivalent net to Ithaca after consideration of the CMI farmout.

The Company's petroleum and natural gas reserves (the "reserves") were independently evaluated by Sproule
( in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves
definitions and evaluation practices and procedures which abide by the standards set by the Canadian Institute
of Mining, Metallurgy and Petroleum ("CIM"), as specified by National Instrument 51-101 ("NI 51-101"). The
evaluation uses Sproule's forecast prices and costs at December 31, 2009.

Current Joint Venture Partners in block 30/6 (Stella and Harrier) are Ithaca (68.33%), Dyas UK Ltd (31.67%) but
post completion of the farm out to CMI will be Ithaca (50.33%), Dyas UK Ltd (31.67%), CMI (18.00%).

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," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof,
whether used in connection with development and future production rates 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.


Ithaca Energy:
Iain McKendrick
+44 (0) 1224 650 261


Ithaca Energy:
John Woods
+44 (0) 1224 650 273


Ithaca Energy:
Nick Muir
+44 (0) 1224 650 267


Pelham Bell Pottinger:
Philip Dennis
+44 (0) 207 337 1516


Pelham Bell Pottinger:
Elena Dobson
+44 (0) 207 337 1517


Cenkos Securities plc:
Jon Fitzpatrick
+44 (0) 131 220 9773


Cenkos Securities plc:
Ken Fleming
+44 (0) 131 220 9772

Neither TSX Venture 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.

Contact Information

  • Ithaca Energy Inc.