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Press release from Marketwire

Ithaca Energy Inc-Bank Syndication Closure

Thursday, October 11, 2012

Ithaca Energy Inc-Bank Syndication Closure02:00 EDT Thursday, October 11, 2012ABERDEEN, SCOTLAND--(Marketwire - October 10, 2012) -TSX-V:IAENot for Distribution to U.S. Newswire Services or for Dissemination inthe United States Ithaca Energy Inc. Closure of Oversubscribed US$430M Debt Facility Syndication 11th October 2012Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) announces that theunderwritten debt facility executed with BNP Paribas ("BNPP") in June2012 has been successfully syndicated by BNPP, bringing six otherleading international banks into the facility.Highlightso The Company has agreed and signed a US$430 million facility with BNPP, as Bookrunner and Mandated Lead Arranger, and six other highly experienced banks working in the international oil and gas sector.o The facility was oversubscribed during syndication, underlining the value of the Company's existing asset portfolio and development execution strategy.o The facility is available to fund ongoing development activities and future asset acquisitions.A Senior Secured Borrowing Base Facility Agreement was executed withBNPP in June 2012 for the provision of a US$400 million underwrittendebt facility, plus US$30 million cost overrun tranche. The subsequentsyndication process run by BNPP, as Bookrunner, was oversubscribed andresulted in the Company securing agreement for a US$430 millionfacility.The seven banks participating in the facility syndicate are:o BNP Paribas and Lloyds TSB Bank plc (as Bookrunners and Mandated Arrangers);o Bank of America N.A., Deutsche Bank AG, The Bank of Nova Scotia and The Royal Bank of Scotland (as Mandated Lead Arrangers); and,o NIBC Bank N.V. (as Manager).The facility, combined with an existing cash balance US$132 million(end Q2-2012) and the Company's projected cashflow from operationsprofile, means that Ithaca has the financial capacity to continuedelivering material growth from both its existing asset portfolio andfrom new additions.Graham Forbes, Chief Financial Officer, commented:"It is very pleasing toclose an over subscribed bank syndicationprocess with such a leading group of experienced banks in the sector.We thank them for their support and look forward to working together aswe grow the Company."Enquiries:Ithaca Energy:Iain McKendrick, CEO +44 (0) 1224 650 261Graham Forbes, CFO +44 (0) 1224 652 151FTI Consulting:Billy Clegg +44 (0) 207 269 7157Edward Westropp +44 (0) 207 269 7230Georgia Mann +44 (0) 207 269 7212Cenkos Securities plc:Jon Fitzpatrick +44 (0) 207 397 8900Ken Fleming +44 (0) 131 220 6939RBC Capital Markets:Tim Chapman +44 (0) 207 653 4641Matthew Coakes +44 (0) 207 653 4871BNP Paribas:Xavier Venereau +33 (0) 1 4316 8212Nick Beattie +44 (0) 207 595 4534Sue Mingay +44 (0) 207 595 3455About Ithaca Energy:Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) and its wholly ownedsubsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), isan oil and gas operator focused on production, appraisal anddevelopment activities on the United Kingdom Continental Shelf. Thegoal of Ithaca, in the near term, is to maximize production and achieveearly production from the development of existing discoveries onproperties held by Ithaca, to originate and participate in explorationand appraisal on properties held by Ithaca when capital permits, and toconsider other opportunities for growth as they are identified fromtime to time by Ithaca.Not for Distribution to U.S. Newswire Services or for Dissemination inthe 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 officerswith respect to various matters. When used in this announcement, thewords "anticipate", "continue", "estimate", "expect", "may","will","project", "plan", "should", "believe", "could", "target" andsimilarexpressions, and the negatives thereof, whether used in connection withproduction and operation activities or otherwise are intended toidentify forward-looking statements. Such statements are not promisesor guarantees, and are subject to known and unknown risks anduncertainties and other factors that may cause actual results or eventsto differ materially from those anticipated in such forward-lookingstatements or information. These forward-looking statements speak onlyas of the date of this announcement. Ithaca Energy Inc. expresslydisclaims any obligation or undertaking to release publicly any updatesor revisions to any forward-looking statement contained herein toreflect any change in its expectations with regard thereto or anychange in events, conditions or circumstances on which anyforward-looking statement is based except as required by applicablesecurities laws.-ENDS- This information is provided by RNS The company news service from the London Stock ExchangeENDFOR FURTHER INFORMATION PLEASE CONTACT: CustomerRNSServices0044-207797-4400rns@londonstockexchange.com