Greater Stella Area Turnkey Drilling Contract

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

Ithaca Energy Inc.

Greater Stella Area Turnkey Drilling Contract

8 April 2013

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) announces that it has contracted the services of Applied Drilling Technology International ("ADTI"), to manage development drilling and completion operations on the Greater Stella Area ("GSA") under "turnkey" contract arrangements. ADTI is a subsidiary of Transocean, the world's largest offshore drilling contractor.

In line with Ithaca's strategy for de-risking key development workscopes, the ADTI turnkey contract locks in the expenditure and performance requirements of the core drilling operations.

ADTI has played a central role in all aspects of the GSA well planning and design work that has been completed over the course of 2012. The drilling campaign is anticipated to commence in Q2-2013 using the high-spec Ensco 100 heavy duty jack-up rig.

The drilling campaign involves the completion of four wells on the Stella field prior to start-up of production. Each well is anticipated to take approximately 80-90 days to drill, complete and clean-up test.

The joint venture partners in the Ithaca operated Greater Stella Area are Ithaca Energy (UK) Ltd (54.66%), Dyas UK Ltd (25.34%) and Petrofac Energy Developments UK Limited (20%).

Mike Travis, Greater Stella Area Project Manager, commented:

"The award of the ADTI contract represents an important step in the Company's approach to reducing GSA project execution risk. ADTI has a long and established relationship with Ithaca, having successfully and safely completed turnkey operations on seven of the Company's operated wells over recent years. ADTI has a highly experienced drilling team in place to manage execution of the campaign and we look forward to the commencement of drilling operations in this quarter."

Enquiries:

Ithaca Energy:

Iain McKendrick, CEO [email protected] +44 (0) 1224 650 261

Graham Forbes, CFO [email protected] +44 (0) 1224 652 151

FTI Consulting:

Billy Clegg [email protected] +44 (0) 207 269 7157

Edward Westropp [email protected] +44 (0) 207 269 7230

Georgia Mann [email protected] +44 (0) 207 269 7212

Cenkos Securities plc:

Jon Fitzpatrick [email protected] +44 (0) 207 397 8900

Neil McDonald [email protected] +44 (0) 131 220 6939

RBC Capital Markets:

Tim Chapman [email protected] +44 (0) 207 653 4641

Matthew Coakes [email protected] +44 (0) 207 653 4871

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 North Sea production, appraisal and development activities. The Company's strategy is centred on building a highly profitable North Sea oil and gas company by maximising production and cashflow from its existing assets, the appraisal and development of existing discoveries on properties held by the Company and the delivery of additional growth via acquisitions and licence round participation.

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 operational activities, potential developments 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-