Ithaca Reports on Q2 Finances

Ithaca Energy Inc. has announced its results for the second quarter ended June 30, 2008.



  • Agreement signed to develop the Athena Field using a Floating Production, Storage and Offloading ("FPSO") facility - significant reduction in capital outlay of approximately US $200 million and accelerates first oil production from Athena by up to 1 year.
  • A 66.67% working interest acquired in the Stella and Harrier Shallow discoveries, which lie in United Kingdom Continental Shelf Block 30/6 Rest of Block (Chalk Layers and Younger). Completion expected August 19, 2008.
  • Independent reserves report by Sproule Associates Limited effective May 31, 2008 assigned:
  • 2P reserves of 39.6 million boe, a 51% increase from December 31, 2007.
  • 3P reserves of 66.6 million boe, a 69% increase on December 2007.


  • $60m pre-development plan credit facility signed with Royal Bank of Scotland ("RBS") in April.
  • Total fixed assets increased to $234.6m ($117.0m as at December 31, 2007) - representing four wells drilled (Polly, Manuel, Athena 17 and Athena 18) and ongoing capital expenditure on the Jacky platform and pipeline.
  • Cash balance at quarter end of $38.1m ($58.6m as March 31, 2008), the decrease being largely the expenditure on the assets described above, additionally funded through a drawdown under the RBS facility and movement in working capital.
  • Net loss for the quarter was $1.7m (gain $0.6m for 3 months to June 30, 2007), due to increases in general and administrative expenses, and increased depreciation and amortisation on a significantly greater asset base.

Events Subsequent to June 30th, 2008:

  • 3rd successful well on Athena successfully tested at 2,330 bopd, penetrating 447 feet of gross oil-bearing sandstones in the Upper Leek formation.
  • Jacky Field Development Plan has been submitted to the DBERR. DBERR provided environmental clearance for the Jacky development in August.
  • Credit approval received (the "New Facility") totalling $240 million -- providing funding for Jacky, Athena, Beatrice, and, as appropriate, other development assets such as Stella.
  • Successfully raised C$75 million through the issue of 50 million common shares.

Commenting, Lawrie H. Payne, CEO, said, "This last quarter has seen the company make significant steps forward in its operations and in its underlying value. This positive momentum is continuing in the current quarter as we move to finalize the Beatrice acquisition, secure the FPSO contract, close the Stella deal and sign up the new banking facility. Following the recent equity offering, I am confident that Ithaca Energy is well placed to meet its development schedules and deliver value to its shareholders."