Acquisition of Non-Operated Interests

ABERDEEN, SCOTLAND--(Marketwire - Oct 9, 2012) -

TSXV:IAE


Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States


                       Ithaca Energy Inc.

    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  imckendrick@ithacaenergy.com   +44 (0) 1224 650 261
Graham Forbes, CFO   gforbes@ithacaenergy.com       +44 (0) 1224 652 151

FTI Consulting:
Billy Clegg         billy.clegg@fticonsulting.com   +44 (0) 207 269 7157
Edward Westropp  edward.westropp@fticonsulting.com  +44 (0) 207 269 7230

Georgia Mann        georgia.mann@fticonsulting.com  +44 (0) 207 269 7212


Cenkos Securities plc:
Jon Fitzpatrick            jfitzpatrick@cenkos.com   +44 (0) 207 397 8900
Ken Fleming                kfleming@cenkos.com       +44 (0) 131 220 6939


RBC Capital Markets:
Tim Chapman                 tim.chapman@rbccm.com    +44 (0) 207 653 4641
Matthew Coakes           matthew.coakes@rbccm.com    +44 (0) 207 653 4871


Notes to oil and gas disclosure:

In accordance with AIM Guidelines, John Horsburgh, BSc (Hons)
Geophysics (Edinburgh), MSc Petroleum Geology (Aberdeen) and Subsurface
Manager at Ithaca is the qualified person that has reviewed the
technical information contained in this press release. Mr Horsburgh
has over 15 years operating experience in the upstream oil and gas
industry.

The report prepared by Sproule International Limited, effective as of
31 December 2011, was prepared in accordance with the Canadian Oil and
Gas Evaluation Handbook ("COGEH") reserves definitions and evaluation
practices and procedures as specified by National Instrument 51-101
("NI 51-101"). The estimates of reserves for individual properties may
not reflect the same confidence level as estimates of reserves for all
properties due to the effects of aggregation. The NI 51-101 summary
data is available under Company's Profile on SEDAR at  www.sedar.com .
Estimated reserves for the MacCulloch oil fieldare based on Ithaca's
internal evaluation of the asset.

The term "boe" may be misleading, particularly if used in isolation. A
boe conversion of 6 Mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.


About Ithaca Energy:

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) and its wholly owned
subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"),is an
oil and gas operator focused on production, appraisal and development
activities on the United Kingdom Continental Shelf. The goal of
Ithaca, in the near term, is to maximize production and achieve early
production from the development of existing discoveries on properties
held by Ithaca, to originate and participate in exploration and
appraisal on properties held by Ithaca when capital permits, and to
consider other opportunities for growth as they are identified from
time to time by Ithaca.


Not for Distribution to U.S. Newswire Services or for Dissemination in
the United States

Forward-looking statements
Some 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 officers
with respect to various matters. When used in this announcement, the
words "anticipate", "continue", "estimate", "expect", "may",
"will","project", "plan", "should", "believe", "could", "target" and
similar
expressions, and the negatives thereof, whether used in connection with
the closing of the acquisitions referred to herein, including the
timing thereof and the anticipated net cash consideration payable
therewith, the reserves and production of the field interests being
acquired, the Company's other fields or otherwise are intended to
identify forward-looking statements. Such statements are not promises
or guarantees, and are subject to known and unknown risks and
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements or information. These forward-looking statements speak only
as of the date of this announcement. Ithaca Energy Inc. expressly
disclaims any obligation or undertaking to release publicly any updates
or revisions to any forward-looking statement contained herein to
reflect any change in its expectations with regard thereto or any
change in events, conditions or circumstances on which any
forward-looking statement is based except as required by applicable
securities laws.



                                -ENDS-

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