Ithaca Energy Moving Forward on Jacky Prospect

Ithaca Energy reports that the Jacky prospect has seen a number of significant developments, which when taken together reaffirms the Company's planned schedule for bringing the field onto production later this year and also moves the wider Beatrice project forward.

Discussions are well advanced to secure a jackup rig to tie-back and complete the initial development well on the Jacky field. It is anticipated that the rig will commence work shortly after the production facility is installed in November this year and is expected to take 20 days to complete the activity.

Soils investigations have been completed at the proposed field location and confirm that conditions are favorable for the planned installation activity, which eliminates the most significant project risk. Construction of the production facility is also well underway at HSM Steel Constructors' yard in Schiedam in Holland.

Finally, the project Environmental Statement has been issued for public consultation. Sanction of this document is a pre-cursor to approval of the Field Development Plan which has been issued in preliminary form to the BERR.

The Jacky Field was discovered in April 2007 by Ithaca and North Sea Energy in UKCS block 12/26c and will be produced through a minimum facilities platform with oil processing and export through the nearby Beatrice field. The Jacky development is located in the Inner Moray Firth. Ithaca is a 90% owner and operator of the project with North Sea Energy Inc. holding the remaining 10%.

In November 2007, Ithaca announced agreement in principal with Talisman UK to purchase their entire 100% interest in the Beatrice offshore oilfield and Nigg onshore oil terminal. The companies are working towards completing this transaction by the middle of this year as planned.

John Woods, Chief Developments Officer with Ithaca energy said: 'These significant steps for the Jacky development project confirm that Ithaca is on schedule to bring the field into production at the end of his year as part of our Greater Beatrice Area development plan.'