Ithaca Energy Inc (fka TSX:IAE)

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New debt facilities
10 October 2013

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company")
announces that it has executed extended and improved long term senior
bank debt financing facilities and oil sales agreements.

Highlights

- Increased existing Reserve Based Lending ("RBL") facility from
$430 million to $610 million, with enhanced terms in the form of a
reduced margin cost and greater flexibility over future unallocated
capital.This has enabled retirement of the $350 million bridge credit
facility established to facilitate the Valiant Petroleum plc
("Valiant") acquisition in April 2013.

- Established a new five year $100 million corporate facility,
providing additional funding flexibility to add new appraisal /
development opportunities to the existing portfolio.

Graham Forbes, Chief Financial Officer, commented:"I am delighted to close
a heavily over-subscribed debt facility
process, with a leading group of experienced oil and gas sector banks,
and to be delivering improved financial terms and flexibility
associated with the Company's senior debt funding.It is also
particularly pleasing to put in place a corporate facility, which
underlines the graduation of the Company into that of a leading
independent North Sea oil and gas operator".

Xavier Venereau, Global Head of Structured Debt, Oil & Gas, at BNP
Paribas, commented:"Ithaca is a very important client for BNP Paribas in
the North Sea and
we are delighted to continue our support of the Company through the
establishment of these two new debt facilities. After having
successfully completed the acquisition of Valiant, Ithaca has continued
to actively monitor its portfolio and its developments. The Company
has an attractive portfolio of assets and an excellent reputation in
the debt market, which was clearly demonstrated by the significant
interest shown by banks in these new facilities. We look forward to
continuing our support of the Company and its growth strategy".

Further Information

The $610 million RBL facility replaces both the existing $430 million
RBL facility that was put in place in May 2012 and the $350 million
bridge credit facility that was established in March 2013 to facilitate
Ithaca's acquisition of Valiant.This increased RBL facility is based
on conventional oil and gas industry borrowing base financing terms,
with a loan term until June 2017, and is available to fund on-going
development activities and any producing asset acquisitions.

Restrictions on the previous RBL facility regarding the distribution of
unallocated capital have been reduced, thereby allowing the Company to
consider the optimal allocation of future cashflow upon the
commencement of production from the Greater Stella Area hub.

The corporate facility provides additional financial flexibility for
the Company to continue to deliver upon its strategy of securing lower
risk organic growth such as the acquisition and appraisal of
undeveloped discoveries that have a strong fit within the existing
portfolio.This facility is based on normal corporate debt covenants,
relating to EBITDAX ("Earnings before Interest Tax Depreciation,
Amortisation and Exploration costs") coverage of debt and interest
obligations.


Syndicate Banks

The banks involved in the financing facilities and respective roles in
the RBL facility are as follows:

- BNP Paribas & Scotiabank - Bookrunners and Mandated Lead
Arrangers.

- Deutsche Bank AG, Lloyds Bank, Royal Bank of Scotland, Barclays
Bank PLC, Commonwealth Bank of Australia, Skandinaviska Enskilda
Banken AB (publ) and Societe Generale - Mandated Lead Arrangers.

- NIBC - Manager.

BNP Paribas was also sole Bookrunner and Mandated Lead Arranger of the
corporate facility.

Oil Sales Agreements

As part of completing the integration of the Valiant assets into the
Company's oil sales arrangements, Ithaca has entered into an extension
of its existing agreement with BP Oil International Limited for the
marketing of niche grade crudes and its oil sales agreement with Shell
Trading International Limited ("Shell") for production from the Cook,
Dons, Causeway Area and Broom producing fields.Future volumes from
the Stella field may also be included.This latter agreement includes
the ability for Ithaca, at its option, to receive pre-payments for
future crude sales to Shell.


- ENDS -


Enquiries:

Ithaca Energy
Graham Forbes [e-mail] [phone]
Richard Smith [e-mail] [phone]


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