Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary
Ithaca Energy (UK) Limited ("Ithaca" or the "Company"), announces that further
to announcements on April 4, 2011 and May 16, 2011, the Company has completed
the transaction to acquire a 28.46% non-operated interest in the Cook oil field
("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca
paid an adjusted cash consideration of US$57 million and transferred to Hess a
10% interest in three Southern North Sea exploration blocks. The transaction has
been funded from the Company's existing cash reserves. 

At completion, Ithaca is also entitled to an oil inventory of approximately
185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011.
The adjusted consideration does not reflect this anticipated cash receipt. 


Cook Field - Non Operated 

Ithaca has acquired an interest in the producing Cook Field which is located in
Block 21/20a in the UK Central North Sea and operated by Shell U.K. Ltd.
Ithaca's share of production is sold under contract to a subsidiary of Shell
Trading International Limited based on the monthly average Brent oil price. 

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

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 of the Cook acquisition,
or production or reserves associated with the Cook acquisition 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 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.

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