Ithaca Assumes Full Operatorship of Stella Development

Ithaca Energy has closed on its previously announced transactions with Maersk Oil and Dyas on Stella and is now operator and therefore in control of the Stella development.

Ithaca paid Maersk Oil US $10 million at this final completion of its acquisition of the entire 33.33% working interest of Maersk Oil in Stella and the undeveloped satellite discovery Harrier and 50% working interest in Hurricane. Ithaca is now operator of all assets involved in the transaction. Ithaca shall pay Maersk Oil a further US $3 million at Field Development approval and US $5 million at first oil. Further details regarding this and related transactions may be found in the announcement dated October 28, 2009.

At the same time, Ithaca completed its sale to Dyas of 31.67% of Stella and in doing so received $8.7 million US dollars in final cash consideration (positively adjusted for working capital) from Dyas. This achieves full and final closing of the deals agreed with Dyas in October 2008 and April 2009.

Ithaca is currently finalizing plans with its partners and contractors in order to commence the drilling of a well on the Stella discovery before the end of December, which will be the subject of a further announcement.