Under the agreement Peak Well Management will provide a semi-submersible rig for one drilling slot of 51 days duration with a 30 day option for a sidetrack. The rig will be utilized in the drilling of the second well on the Athena oil pool. The first well, 14/18b-15 was drilled by Ithaca, EWE and Zeus Petroleum in September and October of this year and was suspended for future production after testing 1,330 barrels of oil per day ("bopd") from the Upper Leek sandstone. This well has been evaluated by Ithaca and management believes it is capable of producing 5,000 bopd when placed on production with submersible pumps. The new well is intended to appraise the upside potential in the Upper Leek sandstone and the Lower leek sandstone which tested 1,300 bopd in the 14/18b-12 well drilled in 1992.
Neill Carson, Ithaca's COO, stated "We are pleased to secure another drilling slot to advance our Athena project, first to FDP approval and then on to production, which we continue to expect to occur in third quarter of 2008. This agreement secures a semi-submersible drilling rig which, together with the previously announced contracting of two drilling slots on the Galaxy II jack-up rig, anchors a major portion of Ithaca's drilling program for 2007 which could involve the drilling of up to six wells."
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