10:40 EDT Monday, April 20, 2009

LONDON, UNITED KINGDOM and CALGARY, ALBERTA--(Marketwire - April 20, 2009) -

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, is pleased to advise that the Jacky field, which started production on the 6th April 2009, is now performing above expectations.

The Jacky production well is currently flowing without artificial lift at gross rates of around 8,800 barrels of oil per day (bopd) (5,920 bopd net to Ithaca). This compares favorably with pre development expectations that artificial lift would be required to achieve 7,800 bopd gross. The Jacky field has been developed with initially one production well tied back to the nearby Beatrice Field facilities.

The current intention is to allow reservoir pressure to reduce over the next few weeks. This will allow start of artificial lift, which is expected to increase production rates further.

Co-venturers in Jacky are Ithaca Energy (UK) Ltd (67.275%) Dyas UK Limited (22.725%) and North Sea Energy (UK) Limited (10%).

John Woods (Chief Developments Officer) said:

"We are delighted that early production performance from Jacky has exceeded our expectations. It is great news that the well is able to flow for the time being at such high rates without artificial lift. This simplifies operations and the downhole pump can be used to increase and maintain Jacky production rates over the coming weeks."