IAE.L Regulatory News (IAE)

13 Jun 2006 07:02

Ithaca Energy Inc13 June 2006 This announcement does not constitute or form part of any offer or invitation tosell or issue, or any solicitation of any offer to purchase or subscribe for,any shares or other securities of Ithaca Energy Inc., nor shall any part of itnor the fact of its distribution form part of or be relied on in connection withany contract or investment decision relating thereto, nor does it constitute arecommendation regarding the securities of Ithaca Energy Inc. NOT FOR RELEASE IN THE UNITED STATES OR DISTRIBUTION TO US NEWS SERVICES The securities of Ithaca have not been registered under the US Securities Act1933, as amended, or any state securities law, and they may not be offered orsold in the United States unless an exemption from registration is available. Ithaca Energy Inc. Ithaca Energy announces partial exercise of Over-Allotment Option and signing of contract for semi-submersible rig for first North Sea test London, England, and Calgary, Alberta, Canada -- Ithaca Energy Inc. of Calgary,Alberta (LSE-AIM and TSX Venture: IAE), announces that its wholly-ownedsubsidiary Ithaca Energy (UK) Limited has entered into a contract with DolphinDrilling for the employment of the semi-submersible rig, Bredford Dolphin, todrill Ithaca's first well on its North Sea Licenses and the partial exercise ofan Over-Allotment Option. Ithaca plans to drill an appraisal well on its 90-percent-owned Athena Projecton block 14/18b in the Outer Moray Firth area of the United Kingdom ContinentalShelf in the North Sea. The well is expected to commence drilling in earlyAugust 2006 to a depth of approximately 9700 feet to appraise Scapa sandspreviously proven to be oil-bearing in two wells drilled by another operator.The well is expected to take approximately 30 days to drill and test, and, ifsuccessful, it will be cased and completed for future production. Lawrie Payne, CEO of Ithaca said, "Obtaining the services of this rig in a verytight rig market is a major accomplishment for the company and reflects Ithaca'saggressive approach to the development of its assets. It will allow us toinitiate appraisal and development of one of Ithaca's most significant assetsmuch earlier than previously anticipated." In connection with Ithaca's Initial Public Offering, Research Capital Inc. andCIBC World Markets Inc. were granted an Over-Allotment Option to acquire up anadditional 2,660,952 Common Shares of Ithaca at the Offering Price for a periodof 30 days following the closing of the Offering, to cover over-allotments andfor market stabilization purposes. Ithaca announces that the Agents havepartially exercised the Over-Allotment Option to acquire 1,300,000 shares fornet proceeds to Ithaca of $2,620,800 Cdn. The balance of the Over-AllotmentOption of 1,360,952 Common Shares may be exercised until July 5, 2006. Ithaca Energy Inc. (www.ithacaenergy.com) is a Canadian company focused on theexploration and development of oil and gas in the North Sea. On June 5, 2006,the company completed an Initial Public Offering on the AIM market in London andon the TSX Venture Exchange, raising GBP 28.3 million ($59.5 million Cdn) beforeexpenses. Ithaca's shares began trading on June 5, with a total of approximately60.7 million shares issued and outstanding. After the partial exercise of theOver-Allotment Option the company now has approximately GBP 36.3 million ($76.1million Cdn) of working capital which is to be utilized for appraisal anddevelopment drilling on three near-term North Sea development projects, of whichAthena is one. The company also has a 20 percent interest in the Barbara gas andcondensate discovery, which is expected to see further development drilling thisyear, and a 100 percent interest in an extension to the Beatrice oilfield whichis expected to be drilled in 2007. The Ithaca securities have not been registered under the US Securities Act of1933, as amended, or any state securities law, and they may not be offered orsold in the United States unless an exemption from registration is available. 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 andcurrent expectations of Ithaca Energy Inc. or its officers with respect tovarious matters. When used in this announcement, the words "expects," "believes," "anticipates," "plans," "may," "will," "should" and similarexpressions, and the negatives thereof, are intended to identify forward-lookingstatements. Such statements are not promises or guarantees, and are subject torisks and uncertainties that could cause actual outcome to differ materiallyfrom those suggested by any such statements. These forward-looking statementsspeak only as of the date of this announcement. Ithaca Energy Inc. expresslydisclaims any obligation or undertaking to release publicly any updates orrevisions to any forward-looking statement contained herein to reflect anychange in its expectations with regard thereto or any change in events,conditions or circumstances on which any forward-looking statement is based. 13 June 2006 - ENDS - The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. For more information, please contact: Lawrence Payne, CEOLondon, England: 0207 590 3028From Canada: 011 44 207 590 3027 Charles VivianPelham Public RelationsEmail: charles.vivian@pelhampr.comLondon: 0207 743 6672From Canada: 011 44 207 743 6672 This information is provided by RNS The company news service from the London Stock Exchange