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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 DRILLING RESULTS AT ATHENA PROJECT
LONDON, U.K. - CALGARY, ALBERTA, October 10, 2006 -- Ithaca Energy Inc. (LSE-AIM: IAE, TSX-V: IAE), a Canadian independent oil & gas company with exploration and development assets in the UK North Sea, is pleased to report that the Ithaca operated Athena 14/18b-15 well (Ithaca 70% working interest) in the outer Moray Firth area has reached total depth of 11,051 feet (3,369 m) measured depth (MD) or 9,644 feet (2,940 m) true vertical depth subsea (TVDSS) and that casing is being run to total depth. Electric logs indicate that the well has intersected an oil column of 329 feet (100 m) vertical in the Upper Leek formation. A testing program is planned to commence later this week.
The well was drilled as planned at a high angle of 60 degrees from vertical through the Lower Cretaceous Upper Leek reservoir and encountered the reservoir 50 feet (15m) TVDSS higher than the nearby 14/18-7 well that tested 850 barrels of oil per day (bopd). Electric logs and other well data received to date indicate that the 14/18b-15 well intersected approximately 632 ft (192 m) of gross oil-bearing sandstones above the oil/water contact with 253 ft (77 m) of net oil-bearing reservoir. Porosities in the oil column range from the cutoff of 12 % to 20 % with an average of 16.5%. A 32 foot (10 m) core was recovered from the upper sand and in correlation with the electric logs, the reservoir parameters as observed are of higher quality compared to the 14/18-7 well.
The 14/18-15 well was drilled also with a secondary objective, to delineate the Lower Leek reservoir which tested 1,300 bopd in the nearby 14/18-12 discovery. To the depth drilled, a total of 110 feet (33m) of gross Lower Leek reservoir was encountered but was water-laden as was the case in the 14/18-7 well.
Currently, production casing is being run to total depth and will be perforated for testing purposes. It is anticipated that testing will require approximately 9 days and will commence while the rig is on location. Depending upon the successful results of the tests, the well will be suspended for future production.
Neill Carson, COO of Ithaca commented: "We are gratified that the drilling of Ithaca’s first well in the North Sea has been accomplished on schedule and on budget and that the initial results confirm our interpretation of the accumulation. The presence of oil in substantial quantities has been confirmed and, subject to successful testing, further drilling to develop both the Upper and Lower Leek reservoirs and the application for field development is planned."
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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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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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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