Ithaca Energy Inc- Third Quarter Operations Update

ABERDEEN, SCOTLAND--(Marketwired - Oct 15, 2013) -

 (TSX: IAE) (LSE: IAE)


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


                        Ithaca Energy Inc.

                  Third Quarter Operations Update

                         15 October 2013

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company")
provides an update on third quarter 2013 ("Q3-2013") operational
activities, including recent key milestones achieved on the Greater
Stella Area ("GSA") development and production performance. The
Company's Q3-2013 financial results are scheduled to be published on 11
November 2013.

Highlights

*   The dry dock related marine system works on the "FPF-1" floating
    production facility have been completed and the vessel has been
    returned to the water.

*   The 60km gas export pipeline has now been fully installed and is
    ready to receive gas upon the start-up of production from the GSA
    hub. Operations to install the infield flexible flowlines and static
    umbilicals have commenced.

*   Drilling operations are on-going and progressing to plan on the
    Stella "A2" development well.

*   Net average export production in Q3-2013 was approximately
    12,000 barrels of oil equivalent per day ("boepd"), 96% oil,
    reflecting the impact of the previously advised shutdowns during
    the quarter.

*   Production from the Cook field has recently been reinstated
    following completion of infield flowline inspection works.The
    planned six week shutdown of the host facility for the Causeway
    Area fields is forecast to be completed around mid-October 2013,
    slightly behind the original schedule.A key remaining risk to full
    year production relates to the timely completion of this shutdown
    and the follow on platform modifications required to enable start-
    up of the electrical submersible pump package on the Causeway field.


Greater Stella Area Development Update

FPF-1 Modifications Programme

Petrofac has recently completed the dry dock related marine system
refurbishment and hull life extension works on the FPF-1 in the
Remontowa shipyard in Gdansk, Poland, and the vessel has now been
successfully refloated.This marks a major milestone in execution of
the FPF-1 modifications programme and will allow the main topsides
processing plant construction and installation activities to
commence.Equipment and materials for the topsides continue to flow to
the yard and work is progressing on construction of the pre-assembled
units and racks that are to be installed on the vessel.

Three additional sponsons have been added to the pontoons on the FPF-1,
involving the construction and installation of approximately 2000
tonnes of steelwork blocks, to provide enhanced buoyancy.Four
buoyancy "blisters" are being fabricated and will be added to the
columns of the vessel during the next phase of operations, in parallel
with the topsides construction works.These modifications are designed
to ensure that the FPF-1 can accommodate the new topsides processing
equipment that is to be installed on the main deck and achieve strong
operational uptime performance.

Subsea Infrastructure Installation Operations

Since the last GSA operations update provided in September a number of
key remaining 2013 subsea installation work programme milestones have
been completed by Technip.

The 60km 10-inch gas export pipeline from the FPF-1 to the BP operated
Central Area Transmission System ("CATS") pipeline has been fully
installed following completion of trench backfill, tie-in and as laid
survey operations.The pipeline is now configured to receive gas
exports upon the start-up of production from the Stella field.No
modifications are required to the onshore Teeside Gas and Liquids
Processing ("TGLP") terminal to receive and process the rich gas that
will be exported from the FPF-1 through the CATS pipeline.

Operations to install the flexible infield flowlines and static
umbilicals that connect the Stella field drill centre manifolds to the
FPF-1 riser bases are on-going.Diving operations to tie-in these
components will be completed immediately following installation of the
infrastructure.Upon completion of the tie-in operations, the 2013
subsea infrastructure installation campaign will have been completed.

As notified in the September update, the GSA co-venturers are in the
process of finalising the oil export route for the development taking
into account the additional information gained from the flow test
results of the "A1" well.Details of the selected option are expected
to be provided later in Q4-2013.

Drilling Programme

Following the successful clean-up flow test performed on the Stella A1
development well, completion operations on the well, including
installation and testing of the xmas tree, were concluded and the ENSCO
100 has commenced drilling of the Stella A2 well.This well is
anticipated to take approximately 80-90 days to drill and complete.A
clean-up flow test will be performed on the well, the results of which
will be announced once available.


Q3-2013 Production & Operations

Total net export production in Q3-2013 was approximately 1.1 million
barrels of oil equivalent, which equates to an average rate over the
quarter of approximately 12,000 boepd, with oil production accounting
for 96% of the total.Production during the quarter was reduced as a
result of the previously advised shutdowns.

Production during the quarter was derived from the operated Athena,
Causeway Area (Causeway and Fionn), Beatrice, Jacky and Anglia fields
and the non-operated Dons (Don Southwest and West Don), Cook, Broom and
Topaz fields.

Total production during Q3-2013 was impacted by commencement of the
major planned shutdown of the Taqa-operated North Cormorant platform,
which serves as the host facility for the Causeway Area fields.This
shutdown is forecast to be completed around mid-October 2013, slightly
behind the original schedule.The timely completion of this shutdown
and thereafter execution to plan of the remaining platform
modifications required to deliver power to the Causeway electrical
submersible pump package installed in the well represents a key
remaining risk to full year 2013 production.

Production during Q3-2013 was also effected by the previously advised
unplanned shutdown of the Shell operated Cook field in August 2013 for
inspection of the infield flowline connecting the field to its host
facility, the Anasuria floating production, storage and offloading
vessel.The inspection has now been completed, with the results
enabling the reinstatement of production.The shutdown duration was
longer than initially anticipated by the field Operator, with
production having just recently been restored.

Further to the announcement made in August 2013, diagnostic testing on
the Athena "P4" well has been completed and this has confirmed that the
electrical submersible pumps installed in the well have failed.The
net production impact of this has been successfully mitigated by the
optimisation of the other wells on the field and the processing
facilities, such that it represents a net production deferment to
Ithaca of just over 300bopd.The options for reinstating full
production from the well, via either a workover or sidetrack, are
currently under evaluation.


                           - ENDS -


Enquiries:

Ithaca Energy
Graham Forbes     gforbes@ithacaenergy.com           +44(0) 1224 652 151
Richard Smith     rsmith@ithacaenergy.com            +44(0) 1224 652 172

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
Jon Fitzpatrick   jfitzpatrick@cenkos.com            +44 (0) 207 397 8900
Neil McDonald     nmcdonald@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 Regarding Oil & Gas Disclosure

In accordance with AIM Guidelines, John Horsburgh, BSc (Hons)
Geophysics (Edinburgh), MSc Petroleum Geology (Aberdeen) and
SubsurfaceManager 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 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. Given the value ratio
based on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6 Mcf: 1 bbl,
utilising a conversion ratio at 6 Mcf: 1 bbl may be misleading as an
indication of value.


About Ithaca Energy

Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas
operator focused on the delivery of lower risk growth through the
appraisal and development of UK undeveloped discoveries, the
exploitation of its existing UK producing asset portfolio and a
Norwegian exploration and appraisal business centred on the generation
of discoveries capable of monetisation prior to development. Ithaca's
strategy is centred on generating sustainable long term shareholder
value by building a highly profitable 25kboe/d North Sea oil and gas
company. For further information please consult the Company's website
 www.ithacaenergy.com .


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


Forward-looking statements

Some 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,
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 press release. 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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