Ithaca Energy Inc.

Ithaca Energy Inc.

November 02, 2009 08:03 ET

Jacky Well Completed Under Budget

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

                                            Ithaca Energy Inc.
                              Rig Completes Jacky Injection Well Under Budget

London, UK - Calgary, Canada, 2nd November, 2009 - 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,  is
pleased to announce it has drilled and completed the Jacky water injection well ahead of schedule and under

The  well  encountered  good  reservoir  quality across the field oil/water  contact  and  is  in  pressure
communication  with  the Jacky production well, as expected. It is ideally located for  providing  pressure
support  to help maintain existing Jacky oil production. Water injection will start over the next week  and
the impact on Jacky production will be reported once injection rates have been optimized.

The  Ensco  80 drilling unit was mobilised to the Jacky Field on Wednesday the 9th September and  completed
the  well on Sunday 1st November, 2 days ahead of schedule. The rig will now mobilise to Beatrice Bravo for
two workover operations, which is expected to boost production from the Beatrice reservoir. Details will be
given once the rig is positioned and the operations are underway.

As  previously  announced, Ithaca will now seek an updated Independent Reserves Audit report for  the  Jacky
field to reflect the significantly better than expected (dry oil) production performance to date.

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

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

Commenting, Iain McKendrick, CEO of Ithaca, said:

"Work  on  sustaining  and  boosting  Jacky and Beatrice production will  maintain  significant  cash  flow
throughout  2010 and beyond. This gives the Company the capability and flexibility to schedule  Stella  and
its  other  opportunities and to enhance production from existing assets and resources  whilst  maintaining
capital  discipline.  The Stella transaction announced last week, whereby Ithaca  becomes  operator,  is  a
timely example of the Company moving to control the pace of investment and development".


Ithaca Energy Inc:
Iain McKendrick, CEO               +44 (0) 1224 650 261
John Woods, CDO                         +44 (0) 1224 650 273
Steven Turner, CFO                     +44 (0) 1224 652 151

Pelham Public Relations:
Philip Dennis                        +44 (0) 207 337 1516
Elena Dobson                          +44 (0) 207 337 1517

Cenkos Securities plc:
Jon Fitzpatrick                         +44 (0) 131 220 9773
Ken Fleming                                 +44 (0) 131 220 9772

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

         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,"
"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 except as required by applicable securities laws.

The  term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1  bbl  is
based  on  an  energy equivalency conversion method primarily applicable at the burner  tip  and  does  not
represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.


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