Ithaca Reports 4Q10 Production

Ithaca reported that combined production in the fourth quarter averaged 8,754 barrels of oil equivalent per day ("boepd") gross (4,148 boepd net to Ithaca). This figure includes a minor contribution from the recently acquired Anglia and Topaz fields, the transaction for which completed on December 17th 2010.

The Company's average daily sales volumes for the period are summarized as follows:

The average realized price for oil production from Beatrice and Jacky in October was $83.826 per barrel and in November was $89.856 per barrel (before hedging and any additional price uplift at the point of sale to a third party). Deliveries for December are currently being priced; gas pricing figures for Anglia and Topaz will be included in future updates.

Overall average daily production for 2010 of 4,529 boepd is approximately in line with the management forecast stated in the Management Discussion & Analysis section of the Company's Third Quarter 2010 Financial Results.

During the first quarter of 2011 several ongoing activities are anticipated to have a positive impact on production levels at Beatrice and Jacky. These projects include:

• Sustained incremental injection of water into the Beatrice reservoirs
• Completion of the Beatrice Alpha well workover campaign including the installation of downhole pumps in two Alpha production wells
• Intervention to restore pumped production from Bravo well, B1

Current average daily production levels for the Company exceed 4,400 boepd, being the target for the first quarter.

As previously announced, management anticipates net average production for 2011 to be between 5,500 to 6,000 boepd net to Ithaca. Sustaining this level of production will be subject to successful well and facilities interventions across the Beatrice Complex and takes into account a successful second production well at Jacky as well as first oil from the Athena Field in 4Q 2011.