Ithaca Energy Inc.

Ithaca Energy Inc.

April 23, 2008 02:00 ET

Ithaca Energy: Operations Update

CALGARY, ALBERTA--(Marketwire - April 23, 2008) -


Ithaca Energy Inc ("Ithaca Energy") (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited, announces an update on its Athena and Jacky prospects.

Athena Prospect

Well 14/18b-17 on the Company's Athena prospect is currently being suspended pending evaluation and possible sidetracking for use in the development of the wider Athena project after failing to encounter commercial hydrocarbons in the primary horizon. Well 14/18b-17 is the Company's third well on this prospect, the two previous wells having each successfully tested at rates of approximately 1,300bopd.

The 14/18-17 well was deviated from the main core of the Athena prospect and drilled to a depth of 9,406 feet TVDSS, aimed at evaluating a possible southern extension to the oil pool. The well penetrated the Lower Cretaceous Leek sands at 8,842 feet, 413 feet above the Athena oil water contact. However, although the Leek formation was found to be oil-bearing from LWD logs, it was of lower quality than is found in the Athena Reservoir and the well has been suspended pending evaluation and possible sidetracking and use in the Athena development scheme. Future drilling will focus on the core area of the Athena field. The next well proposed will target the Leek sands immediately north east of the discovery well, 14/18-7 and is likely to be drilled before the end of 2008.

Ithaca is operator of the Athena prospect, with 70% ownership of the asset. Ithaca's partners include EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%).

In addition, approval has been received from the regulatory authorities of the Environmental Impact Statement to develop the Athena field. This sanction is a pre-cursor to approval of the Field Development Plan which is currently under review by the government Department of Business, Environment and Regulatory Reform ("BERR").

Iain McKendrick, COO of Ithaca said: "Although this well did not prove a viable production location we do have more certainty about the size and scope of the Athena field. We believe the results of the well will not affect the current development plan."

Jacky Prospect

The Jacky prospect has seen a number of significant developments, which when taken together reaffirms the Company's planned schedule for bringing the field onto production later this year and also moves the wider Beatrice project forward.

Discussions are well advanced to secure a jack-up rig to tie-back and complete the initial development well on the Jacky field. It is anticipated that the rig will commence work shortly after the production facility is installed in November this year and is expected to take 20 days to complete the activity.

Soils investigations have been completed at the proposed field location and confirm that conditions are favourable for the planned installation activity, which eliminates the most significant project risk. Construction of the production facility is also well underway at HSM Steel Constructors' yard in Schiedam in Holland.

Finally, the project Environmental Statement has been issued for public consultation. Sanction of this document is a pre-cursor to approval of the Field Development Plan which has been issued in preliminary form to the BERR.

The Jacky Field was discovered in April 2007 by Ithaca and North Sea Energy in UKCS block 12/26c and will be produced through a minimum facilities platform with oil processing and export through the nearby Beatrice field. The Jacky development is located in the Inner Moray Firth. Ithaca is a 90% owner and operator of the project with North Sea Energy Inc. holding the remaining 10%.

In November 2007, Ithaca announced agreement in principal with Talisman UK to purchase their entire 100% interest in the Beatrice offshore oilfield and Nigg onshore oil terminal. The companies are working towards completing this transaction by the middle of this year as planned.

John Woods, Chief Developments Officer with Ithaca energy said: "These significant steps for the Jacky development project confirm that Ithaca is on schedule to bring the field into production at the end of his year as part of our Greater Beatrice Area development plan."


This news release contains certain forward-looking statements, including all statements which address activities, events or developments that Ithaca Energy expects, believes or anticipates will or may occur in the future. Such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Ithaca Energy's control and which are based on various assumptions (including assumptions with respect to (i) availability of funds; and (ii) future capital expenditures) which may prove incorrect. Such risks and uncertainties include, without limitation the impact of general economic conditions in the areas in which Ithaca Energy operates, civil unrest, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. Please refer to the company's Annual Information Form for the year ended 2006 and dated April 30th, 2007 and available for viewing at, for a list of additional risk factors. Ithaca Energy's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Ithaca Energy will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Ithaca Energy or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Ithaca Energy does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and CEO of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.

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