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Press release from Marketwire

Ithaca Energy Inc-Norvarg Appraisal Well Results

Wednesday, July 31, 2013

Ithaca Energy Inc-Norvarg Appraisal Well Results

02:23 EDT Wednesday, July 31, 2013

ABERDEEN, SCOTLAND--(Marketwired - July 30, 2013) - Ithaca Energy Inc. (TSX: IAE)

 Not for Distribution to U.S. Newswire Services or for Dissemination in the United States(TSX VENTURE: IAE) Ithaca Energy Inc. Norvarg Appraisal Well Results 31 July 2013Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) announces that theappraisal well (7225/3-2) test programme on the Norvarg discoverylocated in licence PL535 in the Norwegian sector of the Barents Sea hasbeen completed.The appraisal well was drilled approximately 275 km north of theHammerfest LNG plant on Melkoya, in a water depth of 377 metres, todelineate the Triassic Kobbe Formation of the Norvarg gas discovery.Two formation tests were carried out in the upper and lower parts ofthe Kobbe Formation, with the well flowing at a maximum grossproduction rate of 175,000 standard cubic metres of gas per day(approximately 6.2 million standard cubic feet per day) on a 52/64-inchchoke. Extensive data acquisition, wire line logging, coring andsampling has been carried out. The well has also been completed withdown hole gauges capable of transmitting data after abandonment, whichwill give further information about the extent of the reservoir.The Norvarg appraisal well was drilled to test the eastern segment ofthe structure and to assess the quality and productivity of the Kobbereservoir.The results of the appraisal well have confirmed the extensive natureof the Norvarg discovery and the presence of movable gas throughout theKobbe reservoir, with no water contacts seen. As predicted the qualityof the Kobbe reservoir is variable and further analysis is required toconfirm the productivity of some of the reservoir intervals. Work willnow be undertaken by the partnership to analyse and interpret theacquired data and evaluate the estimated recoverable hydrocarbons onthe structure and potential future development options. Moveable gasidentified in the deeper levels of the reservoir than those in theexploration well will be taken into account in the evaluation of thepotential reserves.The well was drilled to a vertical depth of 2171 metres below sea leveland terminated in the Klappmyss Formation in the Early Triassic. Thewell will now be permanently plugged and abandoned.This is the second well on PL535. The licence was awarded in the 20thLicensing Round in 2009. Well 7225/3-2 was drilled using Ocean's LeivEiriksson semi-submersible rig.The partners in the licence are Total E&P Norge (Operator, 40%), NorthEnergy (20%), Ithaca Petroleum Norge (13%), Statoil (10%-), Det Norske(10%-), and Rocksource Exploration Norway (7%).- Pending government approval.Enquiries:Ithaca Energy:John Woods +44(0) 1224 650 273Richard Smith +44(0) 1224 652 172FTI 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 8900Neil McDonald +44 (0) 131 220 6939RBC Capital Markets:Tim Chapman +44 (0) 207 653 4641Matthew Coakes +44 (0) 207 653 4871Notes to Oil & Gas DisclosuresIn accordance with AIM Guidelines, John Horsburgh, BSc (Hons)Geophysics (Edinburgh), MSc Petroleum Geology (Aberdeen) and SubsurfaceManager at Ithaca is the qualified person that has reviewed thetechnical information contained in this press release. Mr Horsburghhas over 15 years operating experience in the upstream oil and gasindustry.The term "boe" may be misleading, particularly if used in isolation. Aboe conversion of 6 Mcf : 1 bbl is based on an energy equivalencyconversion method primarily applicable at the burner tip and does notrepresent a value equivalency at the wellhead.The well test results disclosed in this news release representshort-term results, which may not necessarily be indicative oflong-term well performance or ultimate hydrocarbon recovery therefrom.About Ithaca EnergyIthaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is an oil and gas operatorfocused on North Sea production, appraisal and development activities.The Company's strategy is centred on building a highly profitable NorthSea oil and gas company by maximising production and cashflow from itsexisting assets, the appraisal and development of existing discoverieson properties held by the Company and the delivery of additional growthviaacquisitions and licence round participation. Not for Distribution to U.S. Newswire Services or for Dissemination in the United StatesForward-looking statementsSome of the statements and information in this press release areforward-looking. Forward-looking statements and forward-lookinginformation (collectively, "forward-looking statements") are based onthe Company's internal expectations, estimates, projections,assumptions and beliefs as at the date of such statements orinformation, including, among other things, assumptions with respect toproduction, drilling, well completion times, future capitalexpenditures, future acquisitions and cash flow. The reader iscautioned that assumptions used in the preparation of such informationmay prove to be incorrect. When used in this press release, thewords"anticipate", "continue", "estimate", "expect", "may","will","project", "plan", "should", "believe", "could", "target" andsimilarexpressions, and the negatives thereof, whether used in connection withoperational activities, production forecasts, budgetary figures,potential developments or otherwise, are intended to identifyforward-looking statements. Such statements are not promises orguarantees, and are subject to known and unknown risks, uncertaintiesand other factors that may cause actual results or events to differmaterially from those anticipated in such forward-looking statements.The Company believes that the expectations reflected in thoseforward-looking statements and are reasonable but no assurance can begiven that these expectations, or the assumptions underlying theseexpectations, will prove to be correct and such forward-lookingstatements and included in this press release should not be undulyrelied upon. These forward-looking statements speak only as of the dateof this press release. Ithaca Energy Inc. expressly disclaims anyobligation or undertaking to release publicly any updates or revisionsto any forward-looking statement contained herein to reflect any changein its expectations with regard thereto or any change in events,conditions or circumstances on which any forward-looking statement isbased except as required by applicable securities laws. -ENDS- This information is provided by RNS The company news service from the London Stock ExchangeEND


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