IAE.L Regulatory News (IAE)

7 June 2012

Lochard Energy Group Plc

Athena Production Rates

Lochard Energy Group Plc ("Lochard" or the "Company") (AIM: LHD, ASX: LHD) notes the announcement made today by Ithaca Energy Inc. relating to the Athena project. Lochard has a net 10% interest in this field through its 100% ownership of Zeus Petroleum Limited.

Clive Carver, Non-Executive Chairman of Lochard Energy Group plc commented:

"First oil from Athena is a significant milestone for Lochard Energy, particularly as it was a field that was originally generated in-house by the current Lochard geological team led by Mike Rose. We are pleased with the initial peak gross oil production rates from the Athena field of 22,000 barrels of oil per day (2,200 bopd net to Lochard). We have a diversified portfolio of North Sea assets which we believe show similar potential and we look forward to progressing more of these fields to similar successful outcomes."

"June 7, 2012

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Ithaca Energy Inc.

Athena Production Rates

Ithaca Energy Inc. (TSX:IAE)(AIM:IAE) announces initial peak gross oil production rates from the Athena field of 22,000 barrels of oil per day ("bopd") (4,950 bopd net to Ithaca) as metered into the BW Athena's storage tanks. Oil export operations have commenced.

The flow from each of the four oil production wells is being supported by electrical submersible pumps, the operating parameters for which are being monitored to stabilise long term production rates. Water injection will be used to support the reservoir pressure of the field and thereby maintain and sustain production rates.

An initial cargo has already been offloaded from the BW Athena to the shuttle tanker "Betty Knutsen". This and future cargoes will be transferred to Ithaca's Nigg oil terminal from where Athena crude will be sold to the market under the Company's marketing contract with BP.

At current oil prices, the project is anticipated to achieve payback within twelve months.

Joint Venture partners in the Athena field are: Ithaca, operator (22.5%), Dyas UK Limited (47.5%), EWE Energie AG (20%) and Zeus Petroleum Limited (10%)."

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