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Press release from Marketwire

Ithaca Energy Inc.: Stella and Harrier Development Update: Award of Subsea EPIC Contract

Monday, July 30, 2012

Ithaca Energy Inc.: Stella and Harrier Development Update: Award of Subsea EPIC Contract02:00 EDT Monday, July 30, 2012LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - July 30, 2012) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESIthaca Energy Inc. (TSX:IAE)(AIM:IAE) announces that it has signed an Engineering, Procurement, Installation and Construction ("EPIC") contract with Technip UK Limited covering the major subsea works that are to be conducted on the Greater Stella Area. The EPIC contract covers:Detailed design and installation of the two 10-inch oil and gas pipelines that will be used to export processed hydrocarbons from the "FPF-1" floating production unit. Installation of manifolds, subsea structures, flexible pipelines and spoolpieces(1) connecting the Stella main and northern drill centres to the FPF-1. Design, manufacture and installation of the umbilicals(2) connecting the drill centres to the FPF-1 and the flexible risers connecting the Stella main manifold to the FPF-1. Installation of the mooring system for the FPF-1 and the design and installation of a five-slot mid water arch.Installation of the subsea infrastructure is scheduled to take place in summer 2013.The gross value of the EPIC contract is approximately US$230 million (US$126 million net to Ithaca). The contract value is in line with the budgeted cost. The overall Stella and Harrier development work programme is progressing as planned, with all the major contracts now in place following the award of the contract to Technip. Front end engineering and design for the FPF-1 upgrade and modification works has been completed by Petrofac and detailed engineering and procurement activities are underway. The FPF-1 is currently located at the Able shipyard on Teeside where work is ongoing to remove obsolete processing equipment on the vessel prior to the commencement of the required modification works. Selection of the yard in which the modification works will be performed is anticipated to be made by Petrofac in Q3-2012. Development drilling is anticipated to commence in late 2012 using the Ensco 100 heavy duty jack-up rig, a contract for which was executed in November 2011. Mike Travis, Greater Stella Area Asset Manager, commented: "We are delighted to be working with Technip for the provision of an integrated subsea infrastructure design and installation service for the Greater Stella Area hub. Awarding a single contract to Technip for the major subsea activities means that we benefit from a cost effective solution as well as accessing the full resources and execution expertise of a leading contractor in the field of subsea engineering and construction. This award also closes out the contracting for the third key element of the Stella and Harrier development programme, given the contracts that were awarded last year for the provision of the Ensco drilling rig and the FPF-1 modification works being performed by Petrofac."The Partners in the Stella and Harrier fields 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.Further information on the Greater Stella Area development is available on the Company's website, www.ithacaenergy.com, including photographs of the works that are currently ongoing on the FPF-1 at the Able shipyard on Teeside.(1) Spoolpiece: a short section of pipe for the connection of two subsea structures.(2) Umbilical: an assembly of steel tubes and/or thermoplastic hoses which can also include electrical cables or optic fibers used to control subsea structures from a platform or a vessel.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.About Technip:Technip is a world leader in project management, engineering and construction for the energy industry including deep water subsea oil and gas developments and the largest and most complex offshore and onshore infrastructures. Technip has 30,000 people and is present in 48 countries and has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction. Technip shares are listed on the NYSE Euronext Paris exchange and the USA over-the-counter (OTC) market as an American Depositary Receipt (ADR:TKPPK).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 including operations and drilling plans. When used in this announcement, the words "anticipate", "anticipated", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target", "scheduled" 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. In the view of the Company's management, this information reflects the best currently available estimates and judgements, and presents, to the best of management's knowledge and belief, the expected course of action. 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.comORMike TravisIthaca Energy:CPO+44 (0) 1224 650 814mtravis@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