Ithaca Begins Third Well at Athena

Ithaca Energy Inc., of Calgary, Alberta, announced that its wholly-owned subsidiary Ithaca Energy (UK) Limited has commenced the drilling of the 14/18-17 well, its third well on the Athena oil project intended to appraise the potential of an extension to the known accumulation.

On Monday 10th March 2008, the rig, Byford Dolphin, managed by AGR, spudded a well on Ithaca's 70%-owned Block 14/18b to test a potential southern extension of the Athena oil pool. A deviated well will be drilled to a depth of approximately 9,000 feet TVDSS to test significant potential upside identified following the recent delivery and interpretation of 3D-seismic reprocessing. This well will take approximately 30 days to reach the targeted Lower Cretaceous Leek sands which constitute the Athena field. On success, the well will be tested and suspended for future production.

Ithaca and its co-venturers, EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%), have successfully drilled and flow-tested two wells to date, being 14/18b-15 and 14/18b-16. Both wells tested at rates of approximately 1,300 bopd and are predicted to flow on production at rates of 5,000 bopd after the installation of Electrical Submersible Pumps (ESPs).

Lawrie Payne, CEO, commented, "This is an important phase of drilling which will determine the scale of the future Athena development. We are very pleased to have secured the services of AGR. Securing drilling slots in a difficult market is important to Ithaca in order to maintain the momentum of this development and target first oil in the first half of 2010."