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Press release from Marketwire

Ithaca Energy Inc.: FDP Approved for Stella and Harrier Fields

Thursday, April 12, 2012

Ithaca Energy Inc.: FDP Approved for Stella and Harrier Fields02:00 EDT Thursday, April 12, 2012LONDON, UNITED KINGDOM, and CALGARY, ALBERTA--(Marketwire - April 12, 2012) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESIthaca Energy Inc. (TSX:IAE)(AIM:IAE) announces that the Company has received Field Development Plan ("FDP") approval for the Stella and Harrier Fields from the UK government.The joint development of the Stella and Harrier fields, located in the Central North Sea, will involve the drilling of subsea horizontal wells tied back to the "FPF-1" floating production unit, with the export of processed hydrocarbons to nearby oil and gas transportation pipelines. Transportation and onshore processing of oil and liquid rich gas arrangements will be announced when finalised. A contract for use of the Ensco 100 heavy duty jack-up rig on the development drilling campaign to commence in H2 2012 was executed in November 2011. The packages for procurement and installation of the subsea infrastructure will shortly be awarded, following completion of a competitive tendering process. A contract was awarded to Petrofac in October 2011 to upgrade and modify the FPF-1, with associated cost and vessel performance incentivisation mechanisms. Specification of the yard for the conversion works will be announced following completion of the ongoing front end engineering and design. The Stella and Harrier fields will benefit fully from the Supplementary Charge shelter provided by the amendments to Small Field Allowances recently announced by the UK Government. Energy Minister Charles Hendry said: "This investment from Ithaca Energy is excellent news and an example of plans coming forward to develop new oil and gas fields in the UK Continental Shelf. "Last month's Budget announced changes to the field allowance for small fields to encourage exploration activity and enhance the case for development of technically challenging fields. It is vitally important we encourage a vibrant industry for these smaller fields to maximise the benefit to the UK of our offshore oil and gas reserves." The Partners in Stella and Harrier are Ithaca Energy (UK) Ltd (operator), Ithaca Minerals (North Sea) Ltd, Dyas UK Ltd and ultimately, under an Earn-In type arrangement, Petrofac GSA Limited.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, are intended to identify forward-looking statements. 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. FOR FURTHER INFORMATION PLEASE CONTACT: Iain McKendrickIthaca EnergyCEO+44 (0) 1224 650 261ORMike TravisIthaca EnergyCPO+44 (0) 1224 650 814ORNick MuirIthaca EnergyCTO+44 (0) 1224 650 267ORPhilip DennisPelham Bell Pottinger Public Relationspdennis@pelhambellpottinger.co.uk+44 (0) 207 861 3919ORRollo Crichton-StuartPelham Bell Pottinger Public Relationsrcrichton-stuart@pelhambellpottinger.co.uk+44 (0) 207 861 3918ORJon FitzpatrickCenkos Securities plc+44 (0) 207 397 8900jfitzpatrick@cenkos.comORBeth McKiernanCenkos Securities plc+44 (0) 131 220 6939bmckiernan@cenkos.comORTim ChapmanRBC Capital Markets+44 (0) 207 653 4641tim.chapman@rbccm.comORMatthew CoakesRBC Capital Markets+44 (0) 207 653 4871matthew.coakes@rbccm.com