Ithaca Receives Proposal from Endeavour

Ithaca Energy Inc. confirms that it has received an unsolicited non-binding proposed offer from Endeavour International Corporation to acquire the entire issued share capital of Ithaca for a combination of cash and shares at an indicative price of US$3.25 per Ithaca share.

Ithaca advises that its board of directors will carefully review and evaluate the Non-Binding Proposed Offer consistent with its fiduciary duties and in consultation with its legal and financial advisers. The Board will consider the various terms, conditions and merits of the Non-Binding Proposed Offer in the context of Ithaca's long term strategic plan with a view toward pursuing the course of action which best maximizes shareholder value. The Board will respond once it has completed this process.