Ithaca Energy Regulatory News (IAE)

FOR: ITHACA ENERGY INC.

TSX, AIM SYMBOL: IAE

May 22, 2012

Ithaca Energy Inc.: Completion of Carna Transaction

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - May 22, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Ithaca Energy Inc. (TSX:IAE)(AIM:IAE) announces completion of the transaction announced March 26 2012 concerning the
Company's interest in the Carna discovery, located in the Southern Gas Basin of the UK North Sea.

Completion of the transaction results in Ithaca increasing its position in the Carna discovery to 32% (from 16%); the
Company will become Operator with immediate effect.

Joint Venture partners (and their respective interests) in the Carna discovery are: Ithaca Energy (UK) Limited, operator
(32%), Centrica (40%), Dyas UK Limited (24%), EWE Energie AG (4%).

About the Carna Discovery:

The discovery was made in early 2009 with a gas column in excess of 1490 feet TVD (true vertical depth) and net pay of
127 feet TVD. The well tested gas at a gross stabilised rate of 8.8 million cubic feet per day (MMcfpd) on a 48/64th
choke from a vertical well penetrating the Carboniferous. Ithaca has agreed with the joint venture partners to
accelerate development studies of the Carna discovery and, if appropriate, to submit a Field Development Plan before the
end of 2012.

Notes to oil and gas disclosure:

In accordance with AIM Guidelines, Hugh Morel, BSc Physics and Geology (Durham), PhD Hydrogeology (London) and senior
petroleum engineer at Ithaca is the qualified person that has reviewed the technical information contained in this press
release. Dr Morel has 30 years operating experience in the upstream oil industry.

The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on an
energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency
at the wellhead.

About Ithaca Energy

Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), is an oil and
gas exploration, development and production company active in the United Kingdom's Continental Shelf ("UKCS"). The goal
of Ithaca, in the near term, is to maximize production and achieve early production from the development of existing
discoveries on properties held by Ithaca, to originate and participate in exploration and appraisal on properties held
by Ithaca when capital permits, and to consider other opportunities for growth as they are identified from time to time
by Ithaca.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding
the intent, belief and current expectations of Ithaca Energy Inc. or its officers with respect to various matters,
including the expected time for submitting FDP approval for the Carna project. When used in this announcement, the words
"anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target"
and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements
are not promises or guarantees, and are subject to known and unknown risks and uncertainties and other factors that may
cause actual results or events to differ materially from those anticipated in such forward-looking statements or
information. These forward-looking statements speak only as of the date of this announcement. Ithaca Energy Inc.
expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statement contained herein to reflect any change in its expectations with regard thereto or any change in events,
conditions or circumstances on which any forward-looking statement is based except as required by applicable securities
laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ithaca Energy Inc.
John Woods
CDO
+44 (0) 1224 650 273
jwoods@ithacaenergy.com

OR

Ithaca Energy Inc.
Nick Muir
CTO
+44 (0) 1224 650 267
nmuir@ithacaenergy.com

OR

Pelham Bell Pottinger Public Relations
Philip Dennis
+44 (0) 207 861 3919
pdennis@pelhambellpottinger.co.uk

OR

Pelham Bell Pottinger Public Relations
Rollo Crichton-Stuart
+44 (0) 207 861 3918
rcrichton-stuart@pelhambellpottinger.co.uk

OR

Cenkos Securities plc
Jon Fitzpatrick
+44 (0) 207 397 8900
jfitzpatrick@cenkos.com

OR

Cenkos Securities plc
Beth McKiernan
+44 (0) 131 220 6939
bmckiernan@cenkos.com

OR

RBC Capital Markets
Tim Chapman
+44 (0) 207 653 4641
tim.chapman@rbccm.com

OR

RBC Capital Markets
Matthew Coakes
+44 (0) 207 653 4871
matthew.coakes@rbccm.com

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