Beatrice Bravo's Production Increases in UK North Sea

Ithaca Energy reported that production potential from the Beatrice Bravo facility has increased by approximately 1,500 barrels of oil per day ("bopd") (750 bopd net to Ithaca), as a result of the completion of well interventions. This is significantly above Management's target of 500 bopd (250 bopd net to Ithaca) however it is too early to establish a reliable longer term production forecast and Management retains the overall target of 5,100 bopd net average production for 2010.

The Beatrice Bravo well intervention program has been successfully completed and the ENSCO 80 drilling rig has now been released from operations, after a period of waiting on weather. Successful well intervention operations to refurbish and restart production from three wells tied into the Beatrice Bravo platform have resulted in a significant boost to production from the northern part of the Beatrice field.

Approximately 1,000 bopd gross (500 bopd net to Ithaca) of the incremental production potential is attributed to the highly effective B11 well intervention which involved perforating across a previously untapped section of the Beatrice reservoir to access an undrained area of the field. Management expects that production rates from this part of the field will continue to stabilize in coming months. Current combined production performance of Bravo platform wells did at one point exceed 2,000 bopd gross (1,000 bopd net to Ithaca). It is anticipated that Beatrice Bravo metered ex-platform production levels will stabilize around 1,500 bopd (750 bopd net to Ithaca).

Works to resolve issues which relate to the processing plant on the Beatrice Alpha platform have been progressing. It is anticipated that production from wells tied into Alpha will restart later this month.

John Woods, Chief Developments Officer, said, "This positive result has been achieved through excellent subsurface work that has been undertaken to identify upside potential which still exists in the Beatrice field. We continue to look for additional opportunities that have similar potential in the wells tied back to the Beatrice Alpha platform and look forward to unlocking significant value through the Alpha workover
campaign which will commence in late Q1 2010."

Joint Venture Partners in the Beatrice Field, including Beatrice Bravo are Ithaca (50%) and Dyas UK Ltd (50%).

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