Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

July 04, 2011 02:00 ET

Ithaca Energy Inc.: Jacky Production Restored

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - July 4, 2011) - Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) -

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

Ithaca Energy Inc. announces that stable production from the Jacky field has been restored in the J01 well ("the well") at approximately 3,120 barrels of oil per day ("bopd")(1,482 bopd net to Ithaca).

Production has been restored to this level through the replacement of a dual ESP system with slightly larger pumps providing greater operational flexibility and prolonged run life. The well was producing at approximately 2,800 bopd (1,300 bopd net to Ithaca) before the loss of pump assisted flow, as previously announced.

Jacky Joint Venture Partners are Ithaca (Operator, 47.5%), Dyas UK Ltd (42.5%), North Sea Energy (UK) Limited (10%).

Athena Project Update

The engineering and modifications associated with the dry dock works in Dubai to extend the Floating Production Storage and Offloading vessel, 'BW Athena' by 65 feet and install a turret docking system have been completed. The vessel has now been re-floated ready for installation of the new power generation and water injection modules during July 2011. This is another critical milestone accomplished towards achieving first oil in Q4 2011.

http://www.ithacaenergy.com/Athena-Area.asp

Athena Joint Venture Partners are Ithaca (operator, 22.5%), Dyas UK Ltd (47.5%), EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%).

Notes to oil and gas disclosure:

In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham), PhD Hydrogeology (London) and senior petroleum engineer at Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release. Dr Morel has 30 years operating experience in the upstream oil industry.

About Ithaca Energy:

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is an oil and gas exploration, development and production company active in the United Kingdom's Continental Shelf ("UKCS"). The goal of Ithaca, in the near term, is to maximize production and achieve early production from the development of existing discoveries on properties held by Ithaca, to originate and participate in exploration and appraisal on properties held by Ithaca when capital permits, and to consider other opportunities for growth as they are identified from time to time by Ithaca.

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 "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target" and similar expressions, and the negatives thereof, whether used in connection with the estimated production levels of the Athena field, anticipated time of first oil from the Athena field or reserves associated with the Athena field are intended to identify forward-looking statements. The reserves for individual properties may not reflect the same confidence level as estimates of reserves of all properties, due to the effects of aggregation. Such statements are not promises or guarantees, and are subject to known and unknown risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements or information. 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.

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.

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