IAE.L Regulatory News (IAE)

12 January 2012

Lochard Energy Group Plc

Re: Ithaca Energy Production and Operations Update

Lochard Energy Group Plc ("Lochard" or the "Company") (AIM: LHD, ASX: LHD) notes the announcement made on 12 January 2012 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.

"January 12, 2012

Ithaca Energy Inc.

Athena Development Update

The Athena field development activities continue to progress. The BW Athena FPSO, is undergoing final phases of conversion work in Dubai Dry Dock World. Commissioning is underway and will be completed before sailaway from Dubai to ensure that the hook-up and offshore commissioning phase is minimised once the vessel arrives on location. Further to the Company's update of December 8, 2011, engineering work on the mooring design and associated power supply has resulted in the mooring system receiving certification for year round operation in the UK North Sea. Commissioning of the vessel power turbine is well advanced. Sailaway from Dubai is scheduled for mid-February and hardening of the vessel to add protection during its transit to the UK is now in progress.

Due to security issues in the area, the Company will not be issuing further announcements on routes or sailing times."

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