Ithaca Finalizes Acquisition of Cook Stake from Hess

Ithaca announced that further to announcements on April 4, 2011 and May 16, 2011, the Company has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field ("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca paid an adjusted cash consideration of US $57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.