Ithaca Energy Inc.

Ithaca Energy Inc.

April 20, 2009 10:40 ET

Positive Update on Jacky Field Production Performance

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - April 20, 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 advise that the Jacky field, which started production on the 6th April 2009, is now performing above expectations.

The Jacky production well is currently flowing without artificial lift at gross rates of around 8,800 barrels of oil per day (bopd) (5,920 bopd net to Ithaca). This compares favorably with pre development expectations that artificial lift would be required to achieve 7,800 bopd gross. The Jacky field has been developed with initially one production well tied back to the nearby Beatrice Field facilities.

The current intention is to allow reservoir pressure to reduce over the next few weeks. This will allow start of artificial lift, which is expected to increase production rates further.

Co-venturers in Jacky are Ithaca Energy (UK) Ltd (67.275%) Dyas UK Limited (22.725%) and North Sea Energy (UK) Limited (10%).

John Woods (Chief Developments Officer) said:

"We are delighted that early production performance from Jacky has exceeded our expectations. It is great news that the well is able to flow for the time being at such high rates without artificial lift. This simplifies operations and the downhole pump can be used to increase and maintain Jacky production rates over the coming weeks."

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 release.

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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