Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

December 13, 2010 09:37 ET

Ithaca Energy Inc.: Second Production Well to be Drilled on Jacky Field

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Dec. 13, 2010) -

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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 it plans to drill a second production well on the Jacky field in Q1 2011 to access additional reserves. Daily production from the well is expected to initially exceed 5,000 barrels of oil per day ("bopd") (2,375 bopd net to Ithaca) when the well comes on stream in Q2 2011.

Production history and detailed subsurface work has identified a currently unswept area within the field to the north of the existing production well. Management believes that this area could contain substantial incremental oil reserves.

The Jacky field has produced strongly from one production well since April 2009 and has significantly exceeded production forecasts.

Ithaca, as operator, has contracted the Energy Enhancer jackup rig owned by Northern Offshore Limited to drill a deviated well from the Jacky platform out to the target area. The well will be completed with electrical submersible pumps and will be tied in to the existing Jacky production manifold for export via the Beatrice Alpha processing facility.

Drilling is scheduled to commence in late February 2011 and the programme will last for approximately 72 days at an estimated cost of US$38 million (US$18 million net to Ithaca). The conclusion of operations and tie-in of the well is anticipated to coincide with a planned maintenance shutdown of the Beatrice facility.

John Woods, Chief Development Officer, commented:

"The exceptional performance of the Jacky field implies that initial estimates of recoverable reserves have been exceeded. The northern area of the field was recognised from the outset to be poorly drained by the current production well. This new well is expected to target a substantial increment to reserves and, upon success, is anticipated to provide continued excellent performance from the field."

Partners in the Jacky field are Ithaca (47.5%), Dyas UK Ltd (42.5%) and North Sea Energy (UK) Ltd (10%).

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.

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 the estimated production levels, anticipated drilling operations and results therefrom, oil in place, reserve levels, hydrocarbon composition 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.

Neither TSX Venture Exchange nor it's 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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