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Press release from Marketwire

Ithaca Energy Inc Announces Handcross Transaction

Friday, December 20, 2013

Ithaca Energy Inc Announces Handcross Transaction

02:00 EST Friday, December 20, 2013

ABERDEEN, SCOTLAND--(Marketwired - December 19, 2013) -

(TSX VENTURE: IAE)Not for Distribution to U.S. Newswire Services or for Dissemination inthe United States Ithaca Energy Inc. Handcross Transaction 20 December 2013Ithaca Energy Inc. (TSX VENTURE: IAE) (LSE AIM: IAE) ("Ithaca" or the"Company")announces execution of an agreement with Oyster Petroleum Limited("Oyster Petroleum") that results in further monetisation of theHandcross exploration prospect ahead of drilling the scheduledcommitment well. The Company also announces that it has entered intoan agreement with TOTAL E&P Norge AS ("TOTAL") to acquire a 10%non-operated interest in licence PL102 (F&G) in the Norwegian NorthSea.Highlights- Divestment of a further 6% working interest in the Handcrossexploration well to Oyster Petroleum for a cash consideration, therebyreducing the Company's working interest to 25%.- Acquisition of a 10% working interest in the TOTAL-operated"Trell"prospect in the Norwegian North Sea.- The transactions are in line with the Company's strategy to bothminimise its exposure to the UK exploration commitments transferred aspart of the Valiant Petroleum plc ("Valiant") acquisition andrestructure the former Valiant portfolio in Norway to focus on lowerrisk geological and geographic opportunities capable of monetisationprior to development.Handcross Exploration WellIthaca has entered into an agreement with Oyster Petroleum concerningUK licences P1631 and P1832 (blocks 204/14c, 204/18b and 204/19c),which contain the Handcross prospect. The agreement will result in thetransfer of a further 6% working interest in the licences, therebyreducing Ithaca's working interest from 31% to 25%. Ithaca retainsoperatorship of the licences.When combined with the previously announced Handcross farm-outs, Ithacahas a fully carried interest in the exploration well that is to bedrilled on the prospect and in addition will receive cash payments fromthe various agreements.Handcross is a Palaeocene prospect located in the Judd Basin in theWest of Shetland sector of the UK Continental Shelf. An explorationwell is to be drilled on the prospect using the Stena Carron drillship,with operations anticipated to commence shortly. The results of thewell will be announced once available.Completion of the transaction is subject to normal regulatory and thirdparty consents. Following completion of the various P1631 and P1832transactions, the Handcross partners will be Ithaca (25%, Operator),Edison (25%), RWE Dea (20%), Sussex Energy (15%) and Oyster Petroleum(15%).PL102 (F&G) Norwegian North Sea Farm-inIthaca has entered into an agreement with TOTAL to acquire a 10%non-operated working interest in licence PL102 (F&G) in the NorwegianNorth Sea. The licence contains the "Trell" prospect, which TOTAL hasjust commenced drilling using Ocean's Leiv Eriksson semi-submersiblerig. Trell lies within approximately 20 kilometres of the Alvheim andHeimdal production hubs and in proximity to a number of existing oildiscoveries. Completion of the PL102 (F&G) transaction is subject tonormal regulatory consents. Following completion, the licence partnerswill be TOTAL (40%, Operator), Petoro (30%), Centrica (10%), Det NorskeOljeselskap (10%) and Ithaca (10%). The forecast gross pre-tax cost ofdrilling the well is approximately $50 million (100%) or $11 million(100%) post the applicable Norwegian 78% tax refund. - ENDS -Enquiries:Ithaca EnergyLes Thomas +44 (0)1224 650 261Richard Smith +44 (0)1224 652 172FTI ConsultingEdward Westropp +44 (0)207 269 7230Georgia Mann +44 (0)207 269 7212Cenkos SecuritiesNeil McDonald +44 (0)131 220 6939Beth McKiernan +44 (0)131 220 9778RBC Capital MarketsTim Chapman +44 (0)207 653 4641Matthew Coakes +44 (0)207 653 4871About Ithaca EnergyIthaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gasoperator focused on the delivery of lower risk growth through theappraisal and development of UK undeveloped discoveries, theexploitation of its existing UK producing asset portfolio and aNorwegian exploration and appraisal business targeting the generationof discoveries capable of monetisation prior to development. Ithaca'sstrategy is centred on generating sustainable long term shareholdervalue by building a highly profitable 25kboe/d North Sea oil and gascompany. For further information please consult the Company's Oyster PetroleumFormed in summer 2013, Oyster Petroleum is a new exploration andproduction company focused on the UKCS. The company is financiallybacked and fully funded by HitecVision, a leading international oil andgas investor. HitecVision has committed funds of USD150 million toOyster Petroleum from its HitecVision VI L.P. fund. Since 2003,HitecVision has invested in a number of highly successful start-ups inthe North Sea, including Revus Energy, Noreco, Spring Energy, CoreEnergy and Spike Exploration.Not for Distribution to U.S. Newswire Services or for Dissemination inthe 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. This information is provided by RNS The company news service from the London Stock ExchangeEND


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