FOR: ITHACA ENERGY INC.
TSX VENTURE, AIM SYMBOL: IAE
June 9, 2010
Ithaca Energy Inc.: Significant Reserves Increase Following Success of Stella Well
LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - June 9, 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 a further significant increase in reserves in the current year post the success of
the recent Stella well.
The following table details the movement of Ithaca's recoverable reserves from December 31 2009 to April 30 2010.
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Based on Sproule Dec 31 2009 Based on Sproule Apr 30 2010
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Category Net Reserves Net Present Net Reserves Net Present
Dec 31 2009 Value Dec 31 Apr 30 2010 Value Apr 30
(mmboe) 2009 (US$ MM) (mmboe) 2010 (US$ MM)
Before Tax Before Tax
discounted at discounted at
10% 10%
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Proved, 1P 15.99 $287.58 20.88 $318.17
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Probable 21.20 $480.77 21.08 $514.30
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Proved plus
Probable, 2P 37.19 $768.35 41.96 $832.47
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Possible 41.98 $1001.68 35.00 $847.58
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Proved plus
Probable plus
Possible, 3P 79.17 $1770.03 76.96 $1680.05
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(i) All figures assume CMI transaction completes subject to partner and
regulatory approval
Total Proved ("1P") reserves have increased 30.6% from 15.99 million barrels of oil equivalent ("mmboe") to 20.88 mmboe
and total Proved plus Probable ("2P") reserves have increased 12.8% from 37.19 mmboe to 41.96 mmboe. The increase in
reserves is due to the updated evaluation of the Stella field based on the results of a successful appraisal well (30/6a-
8) drilled in Q1 2010.
In the latest reserves report (as at April 30 2010) ("Reserves Report") prepared by Sproule International Limited
("Sproule"), net 1P reserves associated with the Stella field increased c. 118% from 4.69 mmboe to 10.23 mmboe and net
2P reserves increased c. 61%, from 8.94 mmboe to 14.37 mmboe. Combined net 2P reserves for the Greater Stella Area,
which also includes the satellite Harrier and Hurricane fields, now totals more than 30 mmboe.
The overall uplift in Stella reserves is attributed to the additional hydrocarbon column height, the nature of the
fluids found within the structure and the larger area now defined by the appraisal well. In detail, Sproule's report
defines net 2P reserves in the Andrew reservoir of 3.32 million barrels of oil, 8.47 mmboe of gas and 2.58 mmboe of
associated condensate. The oil column height is assessed as 222 feet with over 500 feet of overlying gas and condensate.
These results mean that development of the Stella field will include the production of a significant quantity of light
oil as well as condensate and gas.
The Stella field contains two reservoirs, the Andrew and the Ekofisk. The initial vertical Stella appraisal well and its
sidetrack (30/6a-8Z) has provided delineation of hydrocarbons in place. Drill stem testing flowed light oil (39 degrees
API) and some water. Information acquired during drilling allows the Company to progress planning of the development of
both the Stella field and the satellite fields, Harrier and Hurricane.
Proved plus Probable plus Possible ("3P") reserves for the Stella field have been reduced by 8% as the increased
definition of fluid type and structural shape has narrowed the potential range of development outcomes.
Over the period, January 1st to April 30 2010, Sproule have estimated that 620,000 barrels of stock tank oil net to
Ithaca were produced from Beatrice and Jacky fields to the Nigg storage facility and the Reserves Report reflects this
reduction in reserves. No further evaluation of Ithaca's other assets was required post December 31, 2009 for the
purposes of the Reserves Report other than a reflection in the Net Present Value calculations of the acceleration of
Harrier and Hurricane, and the revised oil and gas price assumptions from Sproule.
Iain McKendrick, CEO commented:
"The successful appraisal of Stella, particularly the confirmation of a significant oil column, and the additional
proved and probable recoverable reserves now provides the Company with the confidence to develop Stella and Harrier as a
combined development, targeting first oil and gas in late 2012. The development will ensure available capacity for other
opportunities to be tied in, such as Hurricane in which Ithaca currently holds 100% equity interest. A project team has
been established which is concentrating on the optimisation of the development plan and is considering all export routes
in the area".
"The very significant increase in net reserves and value attributable to Ithaca since November last year, as underlined
by this report, is a testament to the ability of the Company's technical and operational team to successfully find and
develop hydrocarbons in the UK sector of the North Sea".
Further detail on the Stella Field post well results and Reserves Report can be found at http://ithacaenergy.com/Stella-
Area.asp.
The Company's petroleum and natural gas reserves (the "reserves") were 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 as specified by National Instrument 51-101 ("NI 51-101"). The evaluation uses
Sproule's forecast prices and costs at April 30, 2010.
The Company has filed with the securities regulatory authorities in Canada, through the System for Electronic Document
Analysis and Retrieval ("SEDAR"), its statement of reserves data for the period ended April 30, 2010 ("Statement of
Reserves Data"), which includes the disclosure and reports relating to reserves data and other oil and gas information.
The Statement of Reserves Data is available for review at www.sedar.com.
In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and Non-Executive Chairman of
Ithaca is the qualified person that has reviewed the technical information contained in this press release.
Possible reserves are those additional reserves that are less certain to be recovered than Probable reserves. There is
an equal probability that the quantities actually recovered will be greater or less than the sum of Proved plus Probable
reserves. There is a 10% probability that at least the sum of the estimated Proved reserves plus Probable reserves plus
Possible reserves will be recovered.
The estimated Net Present Values do not represent fair market value.
The estimates of reserves and future net revenues for individual properties (for example the Stella field estimates) may
not reflect the same confidence level as estimates of reserves and future net revenue of all properties, due to the
effects of aggregation.
BOE's may be misleading, particularly if used in isolation. A BOE conversion rate of 6mcf: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.
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.
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 Public Relations:
Philip Dennis
+44 (0) 207 861 3894
pdennis@pelhambellpottinger.co.uk
OR
Pelham Bell Pottinger Public Relations:
Elena Dobson
+44 (0) 207 861 3147
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 its 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.