Stella Drilling Commences

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

Ithaca Energy Inc.

Stella Field Development Drilling Commences

18 June 2013 

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces the commencement of development drilling operations on the Stella field, with the first well on the field having been spudded using the Ensco 100 heavy duty jack-up rig. 

The initial campaign involves the drilling and completion of four production wells on the Stella field prior to start-up. Three horizontal wells are to be drilled into the oil rim of the field, along with one highly deviated gas-condensate well on the crest of the structure.

As previously announced, Advanced Drilling Technology International ("ADTI"), a subsidiary of the global drilling contractor Transocean, has been contracted to manage the drilling and completion operations under "turnkey" contract arrangements.

Each well is anticipated to take approximately 80-90 days to drill and complete. It is planned for each well to be clean-up tested, within the capacity limits of the flow test equipment that will be used on the Ensco 100. Details of the test results will be provided.

The joint venture partners in the Ithaca operated GSA are Ithaca Energy (UK) Limited (54.66%), a wholly owned subsidiary of the Company, Dyas UK Limited (25.34%) and Petrofac Energy Developments (20%). 

Further information on the development is available on the Company's website www.ithacaenergy.com, including a new film that provides an insight in to the on-going operations on the development of the GSA.

Enquiries:

Ithaca Energy:Iain McKendrick, CEO [email protected] +44(0) 1224 650 261Graham Forbes, CFO [email protected] +44(0) 1224 652 151

FTI Consulting:Billy Clegg [email protected] +44 (0) 207 269 7157Edward Westropp [email protected] +44 (0) 207 269 7230Georgia Mann [email protected] +44 (0) 207 269 7212

Cenkos Securities plc:Jon Fitzpatrick [email protected] +44 (0) 207 397 8900Neil McDonald [email protected] +44 (0) 131 220 6939

RBC Capital Markets:Tim Chapman [email protected] +44 (0) 207 653 4641Matthew Coakes [email protected] +44 (0) 207 653 4871

About Ithaca Energy:Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) 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 statementsSome of the statements and information in this press release are forward-looking. Forward-looking statements and forward-looking information (collectively, "forward-looking statements") are based on the Company's internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, drilling, well completion times, future capital expenditures, future acquisitions and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. When used in this press release, 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, production forecasts, budgetary figures contained in the corporate presentation, 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, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements and are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements and included in this press release should not be unduly relied upon. 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.

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