Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited, has commenced oil production from the Jacky oilfield and restarted production from the Beatrice Bravo facility, as planned.

Initial production rates from the Jacky well and the Bravo facility are in line with expectations. Stabilised rates will be established and announced shortly. It is anticipated that Jacky and Beatrice production will average approximately 10,000 bopd gross during the course of 2009.

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

Evaluation of Jacky field performance will lead to a decision, during 2009, on drilling a further well or wells. An independent evaluation of reserves by Sproule assigns gross proven and probable reserves of 5.1 million barrels to that field.

Iain McKendrick (Chief Executive Officer) said, “This is a very significant achievement and a milestone for the Company. Ithaca can now look forward to substantial cashflows from its producing fields, which will then feed through to development activity at the recently discovered Carna gas field and to further appraisal activity on our strategically important Stella field in the Central North Sea later this year.

The Jacky development has been the major focus of our operational activity over the last 18 months. Our thanks go to the Ithaca development team, all contractors, the team on Beatrice Alpha, the field Co-venturers and the UK Authorities for helping to bring this development to fruition in a difficult time for the oil industry in general and for small independent companies in particular.

With Wood Group managing the offshore operations and delivering continuing improvements in Beatrice production rates, we are also pleased to see the increase in activity that our presence has generated in the local economy around Nigg and the Moray Firth”.

Tags: Ithaca Energy Inc.