FOR:  ITHACA ENERGY INC.

TSX VENTURE, AIM SYMBOL:  IAE

May 5, 2010

Successful Sidetrack at Stella

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - May 5, 2010) -

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

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited
("Ithaca" or "the Company"), an independent oil & gas company with exploration, development and production
assets in the UK sector of the North Sea, is pleased to announce that a sidetrack well (30/6a-8Z) in the Stella
field has confirmed a fully hydrocarbon-saturated reservoir interval in the Andrew sandstone. Successful
sampling and pressure tests have also provided essential fluid composition information to appropriately size
and plan the development of the Stella field.

Well 30/6a-8Z was drilled as a geological sidetrack to further appraise the Stella field, in particular to
determine the nature of the hydrocarbons at an intermediate depth in the reservoir up-structure from the
initial vertical well (30/6a-8). Data acquired during the operation now permit accurate interpolations to be
undertaken that define the compositional changes from gas and condensate to oil with increasing depth. No
further drill stem testing was required that would enhance existing data already provided by appraisal wells
drilled on the crest of the structure. All objectives have been fully met by the drilling programme and the
Company can now integrate this latest information into engineering studies and define the most appropriate
development strategy.

The well intersected an 18 foot (true vertical thickness) section of Paleocene Andrew sandstone reservoir, a
similar thickness to that seen in other wells on and near the Stella structure. A full suite of wireline logs
have been acquired and indicate porosities up to 27% providing further confirmation of the lateral extent and
quality of the reservoir interval. A full set of pressure data has been acquired to allow the Company to
commence detailed analysis to determine the depth of the gas/oil contact in the Andrew reservoir, above the
light oil encountered in the vertical well (30/6a-8). Data was also gathered over the Ekofisk chalk interval
penetrated by the well.

Ithaca has commissioned Sproule Associates Limited to provide an updated reserves report that will reflect the
results of this drilling programme. The report is expected before the end of Q2 2010, at which time a further
announcement will be made.

The Stella appraisal programme is complete and it is predicted that the rig will be demobilized after 89 days
on location (compared to a pre-drill estimate of 79 days). The final cost of the programme is anticipated to be
within budget.

Current Joint Venture Partners in block 30/6a (Stella and Harrier) are Ithaca (68.33%), Dyas UK Ltd (31.67%).
Post completion of the farm out to Challenger Minerals (North Sea) Limited ("CMI") interests will be Ithaca
(50.33%), Dyas UK Ltd (31.67%), CMI (18.00%).

In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Chairman of Ithaca
Energy is the qualified person that has reviewed the technical information contained in this press release.

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 "expects," "believes," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof,
whether used in connection with the estimated production levels, anticipated time of first oil, oil in place,
hydrocarbon composition or otherwise, are intended to identify forward-looking statements. Such statements are
not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to
differ materially from those suggested by any such statements. 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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FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy:
Iain McKendrick
CEO
+44 (0) 1224 650 261
imckendrick@ithacaenergy.com

OR

Ithaca Energy:
Nick Muir
CXO
+44 (0) 1224 650 267
nmuir@ithacaenergy.com

OR

Ithaca Energy:
John Woods
CDO
+44 (0) 1224 650 273
jwoods@ithacaenergy.com

OR

Pelham Bell Pottinger:
Philip Dennis
+44 (0) 207 337 1516
pdennis@pelhambellpottinger.co.uk

OR

Pelham Bell Pottinger:
Elena Dobson
+44 (0) 207 337 1517
edobson@pelhambellpottinger.co.uk

OR

Cenkos Securities plc:
Jon Fitzpatrick
+44 (0) 207 397 8900
jfitzpatrick@cenkos.com

OR

Cenkos Securities plc:
Ken Fleming
+44 (0) 131 220 6939
kfleming@cenkos.com

Neither TSX Venture nor it's Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Ithaca Energy Inc.