Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

October 07, 2010 02:00 ET

Ithaca Energy Inc.: Third Quarter 2010 Production and A04 Workover Update

LONDON, UNITED KINGDOM and CALGARY, CANADA--(Marketwire - Oct. 7, 2010) -

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 third quarter production and the completion of the first workover in a five well workover campaign on Beatrice Alpha.

Production in the third quarter averaged 10,125 barrels of oil per day ("bopd") gross (4,862 bopd net to Ithaca) with the first of a five well workover programme now complete ("the A04 well"). The production figure represents a slight reduction over second quarter production of 10,217 bopd gross (4,914 bopd net to Ithaca). Further to strong production from the Beatrice Complex in July, production during the months of August and September was marginally tempered by A04 being non-productive during the intervention. Further production time was lost (1.5 days) due to a power supply outage from the mainland to the Beatrice Alpha platform. In addition, during September, production from Jacky was halted for 2 days to allow a chemical 'squeeze' operation which has successfully protected the reservoir productivity from potential scale damage.

The Beatrice Complex average daily sales volumes for the period as measured at the Nigg storage facility are summarised as follows:

  Gross (bopd) Net to Ithaca (bopd)
     
Average Q3 2010 10,125 4,862
July 10,852 5,211
August 10,033 4,816
September 9,489 4,560

The average realised price for production in July was $75.648/bbl and in August was $76.294/bbl (before any additional price uplift at the point of sale to a third party). Deliveries for September are currently being priced.

The first of a five well workover campaign on the Beatrice Alpha platform (consisting of the replacement of tubulars and downhole pumps) has now been completed. The A04 well has been brought back on line and is now being flowed as part of 'clean-up' operations following the workover 'shut-in' period. A further production update will be provided as flow rates stabilise.

The Jacky field continues to perform above expectation. Detailed technical work is ongoing using the production history to date to determine where additional potential lies within the field.

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

Joint Venture Partners in the Beatrice Field, including Beatrice Bravo are Ithaca (50%) and Dyas UK Ltd (50%).

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 the estimated production levels, anticipated time of first oil, oil in place, 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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