Ithaca Energy Inc (fka TSX:IAE)

[futrcash]

Acquisition of Non-Operated Interests in Cook and MacCulloch
UK North Sea Producing Fields

9 October 2012

Ithaca Energy Inc. announces that it has entered into agreements with
Noble Energy Capital Limited (a subsidiary of Noble Energy Inc., NYSE:
NBL) to acquire two wholly owned UK subsidiary companies that will hold
non-operated interests in UK North Sea producing fields; a 12.885%
interest in the Cook field and a 14% interest in the MacCulloch field.

Highlights

o The acquisitions are forecast to result in net incremental
production, predominantly oil, for the Company of approximately 1,100
barrels of oil equivalent per day ("boepd") in 2012.

o The two fields are anticipated to increase the Company's net proven
and probable reserves by 3.4 million barrels of oil equivalent
("mmboe"), based on the effective date of the transactions of 1
January 2012.

o The total consideration is US$38.5 million, implying an acquisition
cost of US$11.3 per barrel of proven and probable reserves.

o The acquisition is in line with the Company's strategy of further
diversifying and expanding its producing asset portfolio and
accelerating the monetisation of its existing pool of UK tax
allowances.

The Cook oil field, operated by Shell, lies in Block 21/20a in the
Central North Sea. The field has been developed as a single well
subsea tie-back to the Shell operated Anasuria floating production,
storage and offloading vessel ("FPSO"), which serves as a host
processing facility to several nearby fields, with oil exported from
the FPSO via shuttle tankers and gas via pipeline to shore.

The acquisition will result in the Company increasing its existing Cook
field interest from 28.46% to 41.345%, furthering its position as the
field's largest owner. Based on the independent reserves assessment
performed by Sproule International Limited ("Sproule"), effective as of
31 December 2011, remaining net proved and probable reserves associated
with the additional 12.885% interest (as of that date) are 2.0 mmboe.

The MacCulloch oil field, currently operated by ConocoPhillips, lies in
Blocks 15/24b in the Central North Sea (transfer of field operatorship
to Endeavour Energy UK Limited is pending completion of a previously
announced transaction). The field is producing from four subsea wells
tied back to the North Sea Producer FPSO, with processed oil and gas
exported via pipelines to shore. Remaining net proved and probable
reserves effective as of 31 December 2011 are estimated by Ithaca to be
approximately 1.4 mmboe. An assessment of the field reserves will be
performed by Sproule as part of the normal year end reserves evaluation
exercise.

Net production from the two fields is anticipated to average 1,100
boepd over 2012, with the contribution from each field being broadly
equal. This estimate takes into account actual field performance,
including the impact of planned maintenance shutdowns on the fields and
the anticipated operational performance of the fields over the
remainder of the year (including a planned shutdown of approximately 15
days on the MacCulloch field in the final quarter of 2012). The fields
are anticipated to contribute approximately the same level of net
production in 2013.

Completion of the transactions is anticipated in early 2013 and is
subject to normal regulatory and joint venture approvals, including
reaching agreement in respect of decommissioning cost security.

The acquisition will be funded from Ithaca's existing cash resources.
At completion the consideration paid will be subject to normal industry
adjustments to reflect the income and costs incurred since the
effective date. The Company anticipates that the resulting net cash
consideration payable at completion will be under US$30 million, based
on the 1 January 2012 effective date and assuming completion occurs in
early 2013. Following completion, the Company's available tax
allowances mean that the resulting net cash flow from the assets is
forecast to deliver a rapid payback of the total consideration.

Iain McKendrick, Chief Executive Officer, commented:"This is the Company's
first acquisition post the announcement of the
new enlarged debt facility and is in line with the stated objective of
acquiring producing reserves in the UKCS to both diversify the
Company's production base and accelerate the utilisation of existing
tax allowances. I am particularly pleased to be acquiring the
interests in these fields, where we see large potential production and
reserve upsides. These acquisitions represent highly accretive and
quick pay-back additions to our growing production base. The Company
is cautiously optimistic of being able to add further asset
acquisitions to its portfolio, given its efforts to continue driving
forward the growth of the Company."


Enquiries:

Ithaca Energy:
Iain McKendrick,CEO [e-mail] [phone]
Graham Forbes, CFO [e-mail] [phone]

FTI Consulting:
Billy Clegg [e-mail] [phone]
Edward Westropp [e-mail] [phone]

Georgia Mann [e-mail] [phone]


Cenkos Securities plc:
Jon Fitzpatrick [e-mail] [phone]
Ken Fleming [e-mail] [phone]


RBC Capital Markets:
Tim Chapman [e-mail] [phone]
Matthew Coakes [e-mail] [phone]


futr