Ithaca Inks Earn-In Agreement on Hurricane Discovery

Ithaca Energy has agreed to farm-out a 31% stake in its Hurricane oil field to Challenger Minerals Ltd (CMI). Under the agreement, CMI will pay 40% of initial appraisal well costs in exchange for a 31% equity interest in Block 29/10b.

If the well is successfully appraised, CMI will pay 40% of gross costs of a drill stem test of any sidetrack. The transaction is subject to approval. Once approved and a rig is chosen, Ithaca anticipates that appraisal drilling will commence in 4Q11. Ithaca currently holds 100% interest in the Hurricane discovery and Block 29/10b.