Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) announces that further to the
announcement of the Sale and Purchase Agreement ("SPA") with Hess Limited

--  The Company has been informed that Hess has received an exercising
    notice in relation to the existing Maclure field coventurers' rights to
    pre-empt the Maclure part of the Transaction 
--  Sproule International Limited ("Sproule") has completed its Reserves
    Audit Opinion on the Cook field and considers Management's view of
    combined remaining Proved plus Probable ("2P") reserves of 5.75 million
    barrels of oil equivalent ("mmboe") net to Ithaca as at 1st January 2011
    to be reasonable 
--  Adjusted consideration of US$62.5 million and the transfer from Ithaca
    to Hess of a 10% interest in three Southern North Sea exploration blocks

As announced on April 4, 2011, Ithaca entered into the SPA to acquire interests
in the Cook oil field ("Cook") and Maclure oil field ("Maclure") from Hess and
to transfer certain blocks to Hess (the "Transaction"). Subject to completed
documentation being executed by Hess and any pre-empting parties, the interest
in the Maclure field will be removed from the Transaction and the consideration
will be adjusted accordingly such that Ithaca shall acquire a 28.46%
non-operated interest in only Cook from Hess. The effective date of the
Transaction remains 1st January 2011.

The Company commissioned Sproule to undertake an independent audit of
Management's estimate of remaining oil and gas reserves in the Cook field.
Management estimate that the acquisition of the Cook interest will increase the
Company's remaining 2P net reserves by 5.75 mmboe from 46.05 to 51.80 mmboe and
this estimate has been considered reasonable by the findings of the audit. The
audit was performed in accordance with the Canadian Oil and Gas Evaluation
Handbook ("COGEH") reserves definitions and evaluation practices and procedures
as specified by National Instrument 51-101 ("NI 51-101").

Based on 5.75 mmboe of 2P reserves remaining in Cook, the acquisition is priced
at 10.87 US$ per boe. Management anticipates that average production from Cook
for 2011 to be approximately 1,900 boepd net to Ithaca.

The Transaction is anticipated to complete in Q3 2011 and is subject to DECC and
co-venturer approvals. At completion, the consideration will be subject to
normal industry adjustments to reflect the income and costs incurred since the
effective date.

Notes to oil and gas disclosure:

In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham),
PhD Hydrogeology (London) and senior petroleum engineer at Ithaca Energy is the
qualified person that has reviewed the technical information contained in this
press release. Dr Morel has 30 years operating experience in the upstream oil

About Ithaca Energy:

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited
("Ithaca" or "the Company"), is an oil and gas exploration, development and
production company active in the United Kingdom's Continental Shelf ("UKCS").
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.

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 "anticipate", "continue",
"estimate", "expect", "may", "will", "project", "plan", "should", "believe",
"could", "target" and similar expressions, and the negatives thereof, whether
used in connection with the estimated production levels, anticipated time of
completion of the Transaction or reserves associated with the Transaction are
intended to identify forward-looking statements. The reserves for individual
properties may not reflect the same confidence level as estimates of reserves of
all properties, due to the effects of aggregation. Such statements are not
promises or guarantees, and are subject to known and unknown risks and
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements or
information. 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

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.

Ithaca Energy Inc. (TSXV:IAE)
Historical Stock Chart
From Oct 2022 to Nov 2022 Click Here for more Ithaca Energy Inc. Charts.
Ithaca Energy Inc. (TSXV:IAE)
Historical Stock Chart
From Nov 2021 to Nov 2022 Click Here for more Ithaca Energy Inc. Charts.