SOURCE: Ithaca Energy Inc

October 12, 2012 02:00 ET

Option Award Exercise and SIP Purchase

ABERDEEN, SCOTLAND--(Marketwire - Oct 12, 2012) -


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

                       Ithaca Energy Inc.

 Grant of Share Options, Exercise of Existing Options and Market Share
                   Incentive Plan Purchases
                        12 October, 2012

Ithaca Energy Inc (TSX: IAE, LSE AIM: IAE) announces that in accordance
with the Company's Stock Option Plan, the Board of Directors has
approved the grant of 5,645,000 share options to Directors and
employees at a price of C$1.99, which was the closing price on the TSX
Exchange on Wednesday, 10th October, 2012. The options shall be granted
effective 11th October, 2012 and may be exercised for a period of four
years from that date. One third of the options will vest at the end of
each of the first, second and third years from the effective date.

Of the recipients, a total of 2,900,000 share options were granted to
Directors and Officers as follows:

Iain McKendrick        Officer and Director        800,000
Graham Forbes          Officer                     600,000
Nicholas Muir          Officer                     300,000
Mike Travis            Officer                     300,000
John Woods             Officer                     300,000
Jack Lee               Director and Chairman       100,000
Ron Brenneman          Director                    100,000
Brad Hurtubise         Director                    100,000
John Summers           Director                    100,000
Frank Wormsbecker      Director                    100,000
Jay Zammit             Director                    100,000

Options Exercises

On 11th October the following Directors and Officers exercised expiring
options at a price of C$1.80 per Common Share:

Iain McKendrick        Officer and Director        150,000
Nicholas Muir          Officer                     100,000
John Woods             Officer                     100,000

On the same day, those same Officers sold the following shares at a
price of GBP1.22 per Common Share in order to cover the associated costs
of the purchases reported above, including income taxes.

Iain McKendrick        Officer and Director        142,800
Nicholas Muir          Officer                      95,200
John Woods             Officer                      95,200

The balance of shares acquired following completion of the transactions
reported above has been retained by each of those Officers in order to
increase their individual shareholdings.

A further 223,875 of options have also been exercised by other
employees of the Company.

As a result of the option exercises reported above, the Company has
applied for a total of 573,875 Common Shares to be admitted to trading
on AIM. Each new Common Share will rank pari passu with the existing
Common Shares.

Share purchase under the Market Share Incentive Plan by Officers

On 11th October the Company was informed that MM&K Share Plan
Administration, the trustee of the Company's Market Share Incentive
Plan ("SIP"), had on that same day made purchases of the Company's
Common Shares under the terms of the SIP on behalf of employees and
officers of the Company. As a result, the Officers of the Company
increased their beneficial shareholdings in the Company by a total of
18,435 shares at a price of GBP1.22 per Common Share as follows:

Iain McKendrick        Officer and Director          3,687
Graham Forbes          Officer                       3,687
Nicholas Muir          Officer                       3,687
John Woods             Officer                       3,687
Mike Travis            Officer                       3,687


Following completion of all the transactions noted above, the revised
shareholdings of the Directors and Officers of the Company are as

                       No. of shares held     % of voting rights
                                                 represented by  
                                                  shares held

Iain McKendrick            175,465                   0.07%
Graham Forbes               49,645                   0.02%
Nicholas Muir               16,445                   0.01%
John Woods                 111,445                   0.04%
Mike Travis                 53,687                   0.02%
Jack Lee                   700,000                   0.27%
Brad Hurtubise             100,000                   0.04%
John Summers               214,700                   0.08%
Frank Wormsbecker          200,000                   0.08%
Jay Zammit                 448,332                   0.17%
Ron Brenneman               60,000                   0.02%

The total number of shares under option is now 20,347,964 Common
Shares, representing approximately 7.8% of total shares outstanding and
under option.

The Company will have 259,920,003 Common Shares outstanding with one
voting right per Common Share. There are no Common Shares held by
Ithaca in treasury. The total number of voting shares in the Company is
therefore 259,920,003. This figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change
in their interest in, the share capital of the Company under the UK
Financial Services Authority's Disclosure and Transparency Rules.

Fully diluted, the Company now has 280,267,967 Common Shares on issue.


Ithaca Energy:
Iain McKendrick, CEO  +44 (0) 1224 650 261
Nick Muir, CTO      +44 (0) 1224 650 267

FTI Consulting:
Billy Clegg  +44 (0) 207 269 7157
Edward Westropp  +44 (0) 207 269 7230
Georgia Mann  +44 (0) 207 269 7212

Cenkos Securities plc:
Jon Fitzpatrick    +44 (0) 207 397 8900
Ken Fleming            +44 (0) 131 220 6939

RBC Capital Markets:
Tim Chapman          +44 (0) 207 653 4641
Matthew Coakes    +44 (0) 207 653 4871

About Ithaca Energy:

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) and its wholly owned
subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"),is an
oil and gas operator focused on production, appraisal and development
activities on the United Kingdom Continental Shelf. The goal of Ithaca,
in the near term, is to maximize production and achieve early
production from the development of existing discoveries on properties
held by Ithaca, to originate and participate in exploration and
appraisal on properties held by Ithaca when capital permits, and to
consider other opportunities for growth as they are identified from
time to time by Ithaca.

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