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Press release from Marketwire

Ithaca Energy Inc.: Completion of Carna Transaction

Tuesday, May 22, 2012

Ithaca Energy Inc.: Completion of Carna Transaction02:00 EDT Tuesday, May 22, 2012LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - May 22, 2012) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESIthaca Energy Inc. (TSX:IAE)(AIM:IAE) announces completion of the transaction announced March 26 2012 concerning the Company's interest in the Carna discovery, located in the Southern Gas Basin of the UK North Sea.Completion of the transaction results in Ithaca increasing its position in the Carna discovery to 32% (from 16%); the Company will become Operator with immediate effect. Joint Venture partners (and their respective interests) in the Carna discovery are: Ithaca Energy (UK) Limited, operator (32%), Centrica (40%), Dyas UK Limited (24%), EWE Energie AG (4%).About the Carna Discovery:The discovery was made in early 2009 with a gas column in excess of 1490 feet TVD (true vertical depth) and net pay of 127 feet TVD. The well tested gas at a gross stabilised rate of 8.8 million cubic feet per day (MMcfpd) on a 48/64th choke from a vertical well penetrating the Carboniferous. Ithaca has agreed with the joint venture partners to accelerate development studies of the Carna discovery and, if appropriate, to submit a Field Development Plan before the end of 2012. 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 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 industry.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. About Ithaca EnergyIthaca 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 STATESForward-looking statementsSome 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, including the expected time for submitting FDP approval for the Carna project. 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: John WoodsIthaca Energy Inc.CDO+44 (0) 1224 650 273jwoods@ithacaenergy.comORNick MuirIthaca Energy Inc.CTO+44 (0) 1224 650 267nmuir@ithacaenergy.comORPhilip DennisPelham Bell Pottinger Public Relations+44 (0) 207 861 3919pdennis@pelhambellpottinger.co.ukORRollo Crichton-StuartPelham Bell Pottinger Public Relations+44 (0) 207 861 3918rcrichton-stuart@pelhambellpottinger.co.ukORJon 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