Ithaca Energy Inc.
TSX VENTURE : IAE
AIM : IAE

Ithaca Energy Inc.

June 09, 2008 13:04 ET

Ithaca Energy: Work Begins on Next Athena Development Well

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - June 9, 2008) -

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

Ithaca Energy Inc. ("Ithaca Energy") (TSX VENTURE:IAE) (AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited announces that, on behalf of the Athena Joint Venture Partners, it has commenced drilling the Athena 'D' development well in the core area of the field in UKCS block 14/18b. The work is being conducted by the Stena Spey drilling rig as part of a multi-client work programme being managed by Senergy Ltd.

The well was spudded on 6th June and operations are expected to continue for about 50 days. After evaluation is complete, casing will be run and the well suspended for future completion as a production well. Completion activities are likely to be in late 2009 when the well will have a submersible pump fitted to increase production rates.

Ithaca Energy (UK) Ltd. holds a 70% interest in the Athena development along with its partners Ewe Atingellinschaft (20%) and Zeus Petroleum (10%). The field will be developed as a subsea tie-back to a stand alone production facility.

As announced on May 29th, 2008, Ithaca has an exclusivity agreement in place with Bluewater Energy Services BV to negotiate the provision of a Floating Production, Storage and Offloading vessel (FPSO) in late 2009 to process produced fluids from the field.

John Woods, Chief Development Officer said "With the FPSO development scheme now underway, this well will be an important milestone for meeting our timeline to delivering Athena first oil in late 2009."

READER ADVISORY

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 December 31st, 2007 and dated April 30th, 2008 and available for viewing at www.sedar.com, 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.

Contact Information