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Ithaca Energy

Increased Reserves and Values for 31 December 2007
Release of 2007 Financial Statements and Annual Information Form and 51-101 Reserves  

Calgary, Canada, April 30th 2008 – Ithaca Energy Inc (“Ithaca Energy” or the “Corporation”)) (TSX Venture: IAE, LSE AIM: IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited is pleased to announce a positive reserves update and its financial results for the year ended 31 December 2007.  

Reserves Summary  

• 31% increase in Proved plus Probable reserves to 26,264.7 thousands of barrels of oil equivalent (“Mboe”)  

• 38% increase in Proved plus Probable plus Possible reserves to 39,359.5 Mboe  

• Reclassification of Jacky and Athena reserves from Probable to Proved and Probable 

The Net Present Value discounted at 10% per annum (NPV 10) of the Athena Proved plus Probable (“2P”) net reserves as calculated by Sproule are US$312 million using their December 2007 forecast price deck. This represents a significant portion of Ithaca Energy’s value and the Corporation intends to develop the pool to first production in 2010 with further drilling in 2008.

The second most significant property is the Jacky discovery, made in 2007. The 2P net reserves attributed to Jacky are 4.7 million barrels of oil equivalent (“MMboe”) of which 1.7MMboe or 37% are considered Proven. The 2P net reserves have an NPV 10 of US$122.7 million. Production facilities for Jacky are under construction in anticipation of first production at the end of 2008.

The third component of the Corporation’s established reserves are represented by a small interest in a gas and condensate pool in the Barbara area of the Central Basin. The 2P reserves net to the Corporation have been evaluated as 0.8MMboe having an NPV 10 of US$7.1 million. The operator of this field is in the process of planning its development for first production in 2010.

In 2008, Ithaca Energy drilled a well near to the Beatrice oilfield which encountered oil and is in the process of negotiating final agreements for the purchase of a 100% interest in the Beatrice oilfield.