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LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - Feb. 1, 2011) -

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

Ithaca Energy Inc. (TSX VENTURE:IAE)(AIM:IAE) and its wholly owned subsidiary Ithaca Energy (UK) Limited ("Ithaca" or "the Company"), an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, announced on December 13^th 2010 that it plans to drill a second production well in the Jacky field in Q1 2011 to access additional production and reserves ('Jacky J03').

Co-venturers in the Jacky field are Ithaca (47.5%), Dyas UK Limited (42.5%) and NSE (10%).

On December 20^th 2010, North Sea Energy (UK) Limited ('NSE') published an announcement on its website that NSE is 'seeking to withdraw from investing in the Jacky J03 well'.

In order to have the participating interests of the Jacky co-venturers in this well clarified, on January 31st 2011 Ithaca commenced proceedings in the High Court of Justice in London for a declaration that the Jacky J03 well is a joint operation.

Planning of the well is now in advanced stages and these Court proceedings are not anticipated to delay or postpone operations to drill the Jacky J03 well.

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