Ithaca Enters Agreement for CAD $100 Million

Ithaca Energy has entered into an agreement to sell to a syndicate of underwriters, on a "bought deal" basis, 27,400,000 common shares at a price of CAD$3.65 per common share for gross proceeds of approximately CAD$100 million.

Ithaca has granted the underwriters an over-allotment option to purchase up to an additional 4,110,000 common shares on the same terms and conditions, exercisable in whole or in part up to 30 days following closing of the offering. The syndicate is co-led by RBC Capital Markets and CIBC World Markets and includes Research Capital Corporation, Tristone Capital Inc. and Fraser Mackenzie Limited.

Ithaca intends to use the net proceeds of this offering to fund development of its Athena and Jacky oil projects, exploration on its UK exploration assets and to fund general working capital. The offering will be made in each of the provinces of Canada (excluding Quebec) by way of short form prospectus and in the United Kingdom and the United States on a private placement basis. The offering is expected to close on or about November 23, 2007 with shares admitted to AIM on or before November 29, 2007.