Ithaca Energy Inc.

Ithaca Energy Inc.

November 24, 2006 09:31 ET

Ithaca Energy Secures Drilling Rig for Athena Project

LONDON, ENGLAND and CALGARY, ALBERTA--(CCNMatthews - Nov. 24, 2006) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Ithaca Energy Inc. (AIM:IAE)(TSX VENTURE:IAE), a Canadian independent oil and gas company with exploration and development assets in the UK North Sea, is pleased to announce that it has signed a Letter of Intent to contract a semi-submersible drilling rig for the drilling of the next well on its 70% owned Athena oil project commencing in the second quarter of 2007.

Under the agreement Peak Well Management will provide a semi-submersible rig for one drilling slot of 51 days duration with a 30 day option for a sidetrack. The rig will be utilized in the drilling of the second well on the Athena oil pool. The first well, 14/18b-15 was drilled by Ithaca, EWE and Zeus Petroleum in September and October of this year and was suspended for future production after testing 1,330 barrels of oil per day ("bopd") from the Upper Leek sandstone. This well has been evaluated by Ithaca and management believes it is capable of producing 5,000 bopd when placed on production with submersible pumps. The new well is intended to appraise the upside potential in the Upper Leek sandstone and the Lower leek sandstone which tested 1,300 bopd in the 14/18b-12 well drilled in 1992.

Neill Carson, Ithaca's COO, stated "We are pleased to secure another drilling slot to advance our Athena project, first to FDP approval and then on to production, which we continue to expect to occur in third quarter of 2008. This agreement secures a semi-submersible drilling rig which, together with the previously announced contracting of two drilling slots on the Galaxy II jack-up rig, anchors a major portion of Ithaca's drilling program for 2007 which could involve the drilling of up to six wells."

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.
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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