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Press release from Marketwire

Ithaca Energy Inc.: Update on Athena Field P1 Operations

Friday, September 14, 2012

Ithaca Energy Inc.: Update on Athena Field P1 Operations02:00 EDT Friday, September 14, 2012LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Sept. 14, 2012) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESIthaca Energy Inc. (TSX:IAE)(AIM:IAE) announces an Athena field operational and production update.The planned hydraulic intervention to eliminate the production tubing blockage in the P1 well, using a Remotely Operated Vehicle Support Vessel, has been performed. This intervention, involving the pumping of fluids into the P1 well flowline (at the wellhead), has resulted in a minor incremental increase in the previously observed flow rates achieved from the well, with gross production from the well now being approximately 700 to 800 barrels of oil per day ("bopd") (160 - 180 bopd net to Ithaca).The production data that has so far been obtained from the field indicates that the anticipated sweep of oil within the reservoir is likely to result in the reserves attributed to P1 being fully produced by the well in its current production condition, supported by recovery from the other wells on the field. The P1 well is the original appraisal well that was drilled on the field in 2006 (completed as a development well in 2011) and represents the least significant producer in terms of forecast ultimate oil recovery from the field.Based on the results of the P1 hydraulic interventions and an assessment of reservoir performance, the Athena co-venturers have decided that the value of producing the P1 well in its current condition outweighs the benefit of performing a workover on the well using a drilling rig. The well will therefore now be produced in its current condition. Future attempts to further clear the blockage by applying hydraulic pressure, using the facilities on the FPSO, may be undertaken when operations allow.The field continues to produce dry oil and the field facilities are performing well.Ithaca third quarter production figures will be announced as usual in early October and a further update on Athena performance will be included at that time. The co-venturers in the Athena field are: Ithaca, operator (22.5%), Dyas UK Limited (47.5%), EWE Energie AG (20%) and Zeus Petroleum Limited (10%).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. 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 production and operation activities of the Athena field or otherwise 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 Energy:CEO+44 (0) 1224 650 261imckendrick@ithacaenergy.comORJohn WoodsIthaca Energy:CDO+44 (0) 1224 650 273jwoods@ithacaenergy.comORGraham ForbesIthaca Energy:CFO+44 (0) 1224 650 151gforbes@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