CIM Cagim Real Estate Corp

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES


Ithaca Energy Inc. (TSX:IAE)(LSE:IAE) announces that it has commenced drilling
of the Hurricane appraisal well in Block 29/10b (Ithaca operated), which lies
within the Company's Greater Stella Area in the UK sector of the Central North
Sea. 


The well is being drilled using the WilHunter semi-submersible rig. The Company
has contracted the services of Applied Drilling Technologies International
("ADTI") to manage drilling operations under "turnkey" contract arrangements.
The well programme is anticipated to take between 75 to 85 days to complete,
including the performance of a drill stem test. 


The Hurricane discovery well, 29/10-4z, was drilled by Shell in 1995. The well
encountered 41 degrees API light oil in Eocene Rogaland sands in the western
lobe of the structure. 


The appraisal well will be drilled to the base of the Tertiary section in the
eastern lobe of the mapped structure and is designed to satisfy three primary
objectives:




--  Confirm the nature and volume of recoverable hydrocarbons 
    
--  Calibrate the hydrocarbon contact with seismic amplitude 
    
--  Verify the distribution, quality and connectivity of the reservoir 



Upon successful completion of the appraisal well objectives, the wellbore will
be suspended for future re-entry and completion as a production well. 


The Hurricane discovery lies within 10 kilometres of the "FPF-1" floating
production unit that will be installed as part of the Company's development of
the Stella and Harrier fields. The anticipated development of Hurricane would
involve the tie-back of wells and subsea infrastructure to the FPF-1, providing
a valuable incremental add-on to the ongoing development of the Greater Stella
Area. 


The Company's independent reserves evaluator, Sproule International Limited,
assigned net Proved and Probable reserves to Hurricane of 2.7 million barrels of
oil equivalent ("mmboe"), based on the well in the western lobe of the
discovery, in its report dated December 31st, 2011. 


The Joint Venture partners in the Ithaca operated Block 29/10b (Hurricane) are
Ithaca Energy (UK) Ltd (54.66%), Dyas UK Ltd (25.34%) and Petrofac Energy
Developments UK Limited (20%).


Notes to oil and gas disclosure: 

In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham),
PhD Hydrogeology (London) and senior petroleum engineer at Ithaca is the
qualified person that has reviewed the technical information contained in this
press release. Dr Morel has 30 years' operating experience in the upstream oil
industry. 


The Company's petroleum and natural gas reserves (the "reserves") have been
independently evaluated by Sproule (www.sproule.com) in accordance with the
Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves definitions and
evaluation practices and procedures which abide by the standards set by the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), as specified by
National Instrument 51-101 ("NI 51-101"). The evaluation uses Sproule's forecast
prices and costs at December 31, 2011. 


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. 


The estimates of reserves and future net revenues for individual properties may
not reflect the same confidence level as estimates of reserves and future net
revenues for all properties, due to the effects of aggregation.


About Ithaca Energy: 

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited
("Ithaca" or "the Company"), is an oil and gas exploration, development and
production company active in the United Kingdom's Continental Shelf ("UKCS").
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 including drilling plans and potential field reserves. 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 future
development plans associated with the Hurricane field 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. In the view of the Company's
management, this information reflects the best currently available estimates and
judgements, and presents, to the best of management's knowledge and belief, the
expected course of action. 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. Readers are cautioned that the forward-looking
statements contained in this press release should not be used for purposes other
than for which it is disclosed herein. These statements may not be appropriate
for other purposes.

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