Ithaca Energy Inc.: Further UK Exploration Portfolio Farm-Outs

Its sales are 2.4 times ahead of GTA IV and it has defeated the previous fastest selling game (Call of Duty: Black Ops) by 250,000 units.” AMAZEBALLS! It also accounted for 89 per cent of the entire week’s sales. The rest of the Top Ten (which includes Pro Evolution Soccer 2014 at No.2) accounted for four per cent of the market. In the words of Chart-Track “it is hard to imagine a week where one title has been so dominant or perhaps ever will.’ Chart-Track makes the following statement regarding the remarkable chart action: “With just five days on sale it has become the 24th biggest selling title of all time in the UK (11th biggest on Xbox 360 and 10th on PS3). It has sold more in its first week than the launch weeks of all other GTA titles combined. It’s launch week is 2.4 times greater than that of GTA IV and betters previous best Call of Duty: Black Ops by almost million units. Released on just the two formats, Xbox 360 accounted for 57% of sales and PS3 43%. “It might feel like GTA V was the only new release this week with 89% of all sales being for just that one title, but Pro Evolution Soccer 2014 debuts at No2, while further down the chart at No22 is Harvest Moon 3D: A New Beginning. Hardware bundling helps push The Last of Us (+536%) up from No27 to No3, while last week’s No1, Saints Row IV (-45%) slips to No4. “Tom Clancy’s Splinter Cell: Blacklist (-8%) is down one place to No5, ahead of Minecraft: Xbox 360 Edition (+1%), a non-mover at No6. Diablo III sales drop by 49% as it falls from No3 to No7.

Handcross is a Palaeocene prospect located in the Judd Basin in the West of Shetland sector of the UK Continental Shelf (“UKCS”).An exploration well is to be drilled on the prospect using the Stena Carron drillship, with operations anticipated to commence in late 2013. Completion of the transactions is subject to normal regulatory and third party consents.Following completion, the Handcross partners will be Ithaca (31%, Operator), Edison (25%), RWE Dea (20%), Sussex Energy (15%) and Oyster Petroleum (9%). In addition, Ithaca has entered into a further agreement with Oyster Petroleum to transfer its full 33.33% non-operated interest in UK licence P2018 for a cash sum.The licence, covering West of Shetland blocks 214/24b, 214/29a and 214/30c, was awarded in the UK 27th Offshore Licensing Round.Completion of the licence transfer is subject to normal third party and regulatory consents. Oyster Petroleum isa new UK West of Shetland focused exploration company backed by the Norwegian international oil and gas investor HitecVision.Sussex Energy is a subsidiary of Azimuth Limited, a privately owned company with assets in the UKCS, Norway, Eire and Namibia. Isabella Exploration Well Farm-Out Ithaca has entered into an agreement with Euroil Exploration Limited, a wholly owned subsidiary of Edison, to farm-out a 10% interest in UK licence P1820 which contains the Isabella gas condensate prospect.This transaction reduces Ithaca’s non-operated working interest in the licence from 20% to 10%. The farm-out agreement provides for Edison to pay its 10% working interest share of future licence costs in addition to a cash payment to Ithaca.When combined with the earlier Isabella farm-out transaction executed with Maersk Oil North Sea UK Limited, Ithaca is now carried for its forecast share of the Isabella exploration commitment well cost and will also receive additional cash beyond the carry. The P1820 licence was awarded in the UK 26th Offshore Licensing Round and covers blocks 30/6b, 30/11a and 30/12d in the UK Central North Sea.The licence work programme requires an exploration well to be drilled on the Isabella prospect by early 2015. Completion of the transaction is subject to normal third party and regulatory consents.Following completion, the Isabella partners will be Apache North Sea Limited (50%, Operator), Maersk Oil North Sea UK Limited (30%), Ithaca (10%) and Edison (10%). Edison is a major European energy company, with operations spanning the full energy supply chain, including oil and gas activities in Europe and Africa. – ENDS – Enquiries: Ithaca Energy Iain McKendrick imckendrick@ithacaenergy.com +44 (0)1224 650 261 Graham Forbes gforbes@ithacaenergy.com +44 (0)1224 652 151 FTI Consulting Billy Clegg billy.clegg@fticonsulting.com +44 (0)207 269 7157 Edward Westropp edward.westropp@fticonsulting.com +44 (0)207 269 7230 Georgia Mann georgia.mann@fticonsulting.com +44 (0)207 269 7212 Cenkos Securities Jon Fitzpatrick jfitzpatrick@cenkos.com +44 (0)207 397 8900 Neil McDonald nmcdonald@cenkos.com +44 (0)131 220 6939 RBC Capital Markets Tim Chapman tim.chapman@rbccm.com +44 (0)207 653 4641 Matthew Coakes matthew.coakes@rbccm.com +44 (0)207 653 4871 About Ithaca Energy Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries, the exploitation of its existing UK producing asset portfolio and a Norwegian exploration and appraisal business centred on the generation of discoveries capable of monetisation prior to development. Ithaca’s strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company’s website www.ithacaenergy.com.

UK’s new Dragon LNG deal no guarantee of supply -Qatargas

Markets close in 46 mins. UK’s new Dragon LNG deal no guarantee of supply -Qatargas Reuters 9 hours ago 2,055.50 -14.0000 DUBAI, Sept 23 (Reuters) – Qatargas is not obliged to ship any liquefied natural gas (LNG) to Britain’s Dragon import terminal under a five-year agreement announced last week, the world’s largest LNG supplier said. Falling domestic gas production has made Britain heavily reliant on imports of LNG, especially from Qatar, and rising competition from buyers in Asia has stoked concerns about UK winter gas supplies. Qatargas announced on Sept. 17 it had signed an agreement to supply 1.14 million tonnes a year (mtpa) of LNG to Petronas at the Dragon LNG terminal in Wales. Yet there is no guarantee that any super-cooled gas will be delivered under the flexible contract, which runs from January 2014 to December 2018, with Qatargas having the option to ship all the volume elsewhere for an undisclosed fee. “Qatargas has the flexibility rights to divert all these cargoes elsewhere. We are neither able to divulge how much of the contracted volume will be delivering into the UK or not, nor as to when such deliveries will be made,” a spokeswoman for the Qatari company said on Sunday. “Subject to certain conditions related to timing and payment of a diversion fee, Qatargas has flexibility rights to divert all these cargoes elsewhere.” PRICE SPIKES Although LNG suppliers can usually sell their fuel at much higher prices in northeast Asia, winter price spikes may make the wholesale UK gas market attractive enough to ship some more cargoes northwest Europe. Qatargas declined to comment on whether the company was also negotiating similar flexible deals with capacity holders at any other European LNG import terminals. But sources say Qatar is negotiating deals with customers at the Gate terminal in the Netherlands and elsewhere to buy import capacity, as a fallback destination to Asia in case demand for Qatari LNG there drops. Qatargas and its Qatargas 2 project partner ExxonMobil are already the biggest gas suppliers to the nearby South Hook import terminal at Milford Haven in Wales. Qatargas now has the option to supply an affiliate of Malaysian company Petronas at the neighbouring Dragon terminal with fuel produced by the Qatargas 4 joint venture between Qatar Petroleum and Royal Dutch Shell. @yahoofinance on Twitter, become a fan on Facebook Chart Your most recently viewed tickers will automatically show up here if you type a ticker in the “Enter symbol/company” at the bottom of this module.

Oyster Petroleum isa new UK West of Shetland focused exploration company backed by the Norwegian international oil and gas investor HitecVision.Sussex Energy is a subsidiary of Azimuth Limited, a privately owned company with assets in the UKCS, Norway, Eire and Namibia. Isabella Exploration Well Farm-Out Ithaca has entered into an agreement with Euroil Exploration Limited, a wholly owned subsidiary of Edison, to farm-out a 10% interest in UK licence P1820 which contains the Isabella gas condensate prospect.This transaction reduces Ithaca’s non-operated working interest in the licence from 20% to 10%. The farm-out agreement provides for Edison to pay its 10% working interest share of future licence costs in addition to a cash payment to Ithaca.When combined with the earlier Isabella farm-out transaction executed with Maersk Oil North Sea UK Limited, Ithaca is now carried for its forecast share of the Isabella exploration commitment well cost and will also receive additional cash beyond the carry. The P1820 licence was awarded in the UK 26th Offshore Licensing Round and covers blocks 30/6b, 30/11a and 30/12d in the UK Central North Sea.The licence work programme requires an exploration well to be drilled on the Isabella prospect by early 2015. Completion of the transaction is subject to normal third party and regulatory consents.Following completion, the Isabella partners will be Apache North Sea Limited (50%, Operator), Maersk Oil North Sea UK Limited (30%), Ithaca (10%) and Edison (10%). Edison is a major European energy company, with operations spanning the full energy supply chain, including oil and gas activities in Europe and Africa. – ENDS – Enquiries: Ithaca Energy Iain McKendrick imckendrick@ithacaenergy.com +44 (0)1224 650 261 Graham Forbes gforbes@ithacaenergy.com +44 (0)1224 652 151 FTI Consulting Billy Clegg billy.clegg@fticonsulting.com +44 (0)207 269 7157 Edward Westropp edward.westropp@fticonsulting.com +44 (0)207 269 7230 Georgia Mann georgia.mann@fticonsulting.com +44 (0)207 269 7212 Cenkos Securities Jon Fitzpatrick jfitzpatrick@cenkos.com +44 (0)207 397 8900 Neil McDonald nmcdonald@cenkos.com +44 (0)131 220 6939 RBC Capital Markets Tim Chapman tim.chapman@rbccm.com +44 (0)207 653 4641 Matthew Coakes matthew.coakes@rbccm.com +44 (0)207 653 4871 About Ithaca Energy Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries, the exploitation of its existing UK producing asset portfolio and a Norwegian exploration and appraisal business centred on the generation of discoveries capable of monetisation prior to development. Ithaca’s strategy is centred on generating sustainable long term shareholder value by building a highly profitable 25kboe/d North Sea oil and gas company. For further information please consult the Company’s website www.ithacaenergy.com . About Edison: Edison, the oldest energy company in Europe and now part of the EDF Group (Electricite de France), has about 3,200 employees in more than 10 countries across Europe, Africa and the Middle East, with activities ranging from exploration and production of crude oil and natural gas to the production and sales of electric power and the marketing of natural gas. Edison’s Exploration & Production activities cover approximately 100 permits and concessions in Italy and abroad (Egypt, Norway, Falkland Islands, Algeria, Croatia, Israel, UK).