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Media/Investor Relations
News Release
NOT FOR RELEASE IN THE UNITED STATES OR DISTRIBUTION TO US NEWS SERVICES
ITHACA ENERGY ANNOUNCES SECOND QUARTER 2007 RESULTS AND ORGANIZATIONAL CHANGES
LONDON, U.K. - CALGARY, ALBERTA, August 22, 2007 -- Ithaca Energy Inc. (the "Company") (LSE-AIM: IAE, TSX-V: IAE), a Canadian independent oil and gas company with exploration and development assets in the UK North Sea, announces its results for the second quarter ended June 30, 2007 and a reorganization of its management team.
Highlights
Operations:
- The Company successfully drilled its 12/21c-6 well on the 90%-owned Jacky (formerly known as Basil) prospect in the Beatrice area of the Inner Moray Firth and suspended it for future re-entry and production.
- Development plans for a one well tie-in to the Beatrice facility are under way and first oil production could be realized in the second half of 2008. Under a farmout agreement, Ithaca paid for 85% of the well and retained a 90% interest.
- The Company is preparing to drill the second well at its 70%-owned oil discovery at Athena prior to subsequent application for field development.
- Agreement has been reached with the owners of the adjacent Phyllis discovery to evaluate the feasibility of unitization and development of both fields.
Financial:
- Strong cash, accounts receivable, and pre-paid deposits position of US$48 million
- Net income of US$586,941 due to unrealized foreign exchange gains
- 82.9 million common shares outstanding (June 30, 2007)
Ongoing Operations:
The expeditious development of the Company’s discoveries at Athena, Jacky and Barbara are fundamental to Ithaca’s plan to generate production at the earliest opportunity. At present first production is anticipated from Jacky in late 2008 with Athena to follow in late 2009. While proceeding with the process of bringing the three current discoveries on stream, the Company is also making preparations to commence the drilling of certain exploration properties. Under a farmout arrangement, the Morpheus prospect in the Southern Gas Basin will be drilled in the first quarter of 2008.
Management Changes:
Neill Carson, Chief Operating Officer, has resigned from the Board of Directors and will be leaving the Company to pursue other interests. Lawrie Payne, Chief Executive officer, will assume the responsibilities of COO until a replacement is secured. In order to facilitate an orderly transition, Neill will remain with the Company until October 31, 2007 and thereafter as a consultant on an as needed basis.
Commenting today, John Summers, Chairman of Ithaca, said: "The contribution Neill has made in building Ithaca Energy into a material company cannot be overstated. His energy and enthusiasm will be missed. On behalf of the Board of Directors, management and employees of Ithaca, I wish Neill every success in his future career and look forward to working with him on an orderly transition."
Ithaca Energy has organized itself around an Executive Committee, headed by its Chief Executive Officer and acting Chief Operating Officer (Lawrie H. Payne), along with Chief Financial Officer and Chief Corporate Development Officer (Brad G. Gunn), both of whom are on the Board of Directors, Chief Exploration Officer (Nick D. Muir), Chief Development Officer (John Woods), Chief Controller, Rod McKinnon.
The Company is also pleased to announce that it has appointed Mr. Marcus Paige as Commercial Manager. Formerly with Total, Mr. Paige brings over 10 years of North Sea commercial transaction experience to Ithaca. Initially, he will be responsible for negotiating and contracting Ithaca’s upstream commercial agreements, working with management to identify new opportunities and drive the Company’s strategic growth plans.
Commenting, Lawrie Payne, Chief Executive Officer, said: "The Company has achieved a number of successes and is well positioned financially to exploit its development and exploration opportunities in the future. Having control of our projects through operatorship, high working interests and financial capability enables the Company to proceed with development and exploration on an accelerated basis which is of paramount significance to shareholder return. I would like to personally wish Neill Carson well in the future. As a founder of the Company, Neill Carson was a fundamental and valued player."
Not for Distribution to U.S. Newswire Services or for Dissemination in the United States
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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", "anticipates", "plans", "may", "will", "should" and similar expressions, and the negatives thereof, 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.
In accordance with AIM Guidelines, Lawrie Payne, MA Marine Geology (Alberta & Columbia) and CEO of Ithaca Energy is the qualified person that has reviewed the technical information contained in this press release.
Enquiries:
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Ithaca Energy Inc:
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Office: |
Mobile |
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Lawrie Payne |
In London:
+44(0) 20 7590 3027 |
+44(0)7841 678668 |
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Brad Gunn |
In London:
+44(0) 20 7590 3026 |
+44(0)7920 019355 |
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In Calgary:
+1 (403) 668 9599 |
+1 (403) 389 4107 |
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Nabarro Wells & Co. Limited |
Office: |
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Marc Cramsie |
+44(0) 20 7710 7400 |
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| John Wilkes
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+44(0) 20 7710 7400 |
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Pelham Public Relations |
Office: |
Mobile |
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Charles Vivian |
+44(0) 20 7743 6673 |
+44(0)7977297903 |
| Philip Dennis
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+44(0) 20 7743 6363 |
+44(0)7947868206 |
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