Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

March 20, 2009 06:11 ET

Ithaca Energy Inc. Gas Discovery Confirmed at Carna

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - March 20, 2009) -

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

Ithaca Energy Inc. ("Ithaca" or "the Company") (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited, an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, is pleased to announce that the Carna Gas well (43/21b-5z) has been successfully tested at stabilised rates in line with expectations.

Ithaca, holding a 29.9% interest, notes the following statement from the Operator, Venture North Sea Gas Limited ("Venture"):

"The Carna well (43/21b-5/5z) commenced drilling from the Ensco 92 drilling rig on 26 December 2008 and reached a total measured depth of 11,500 feet on 4 March 2009. The well was designed to test a Carboniferous fault block and a significant gas reservoir was discovered following a mechanical sidetrack carried out in January. Well log data indicates a gas column in excess of 1490 feet TVD (true vertical depth) and net pay of 127 feet TVD. The well tested gas at stabilised rates in line with expectations with a gross rate of nine million cubic feet per day (MMcfpd) on a 48/64th choke from a vertical well penetrating the Carboniferous. No formation water was produced during the test. The well has been suspended pending further sidetrack to become a future production well and a field development decision will be made following a full evaluation of the export options."

The Operator's statement, quoting its estimated net figures, can be reviewed further at: http://www.vpc.co.uk/

Iain McKendrick, CEO, said 'Ithaca is very pleased with the discovery of commercial gas at Carna. We look forward to working with Venture on the development of Carna and the exploitation of the significant prospectivity associated with the Greater Carna Area, in which Ithaca holds a 44.85% interest".

The co-venturers involved in the Carna prospect are Venture (56%, Operator), Ithaca Energy (UK) Limited (29.9%), Dyas UK Limited (10.1%) and EWE Aktiengesellschaft (4%).

The co-venturers involved in the Greater Carna Area are Venture (40%, Operator), Ithaca Energy (UK) Limited (44.85%) and Dyas UK Limited (15.15%).

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" and similar expressions, and the negatives thereof, 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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