Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited, an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, announces that the Company has entered into an agreement to acquire certain UK North Sea gas interests from GDF SUEZ E&P UK Ltd for a cash consideration of £11.25 million (approximately US$16.9 million).

The Acquisition includes operated interests in the producing Anglia Field, for which the assumption of operatorship is subject to certain approvals, and the Garnet and Opal discoveries, and a non operated interest in the producing Topaz Field. The Company believes the Acquisition has the potential to create significant additional value through the further exploitation and optimization of the acquired interests.

The effective date of the Acquisition is January 1, 2010.
Key Acquisition Highlights The Acquisition strengthens and diversifies Ithaca’s existing UK North Sea production asset portfolio by providing a number of significant operational and financial benefits, including:
- the addition of the Anglia Field (operatorship of which is subject to partner and regulatory approval) that provides diversification to the Company’s other operated assets that include the producing Beatrice/Jacky fields and the Athena and Greater Stella Area developments
- the enlargement and diversification of the Company’s production base through the addition of net estimated 2010 production of over 6 million standard cubic feet per day (1,000 barrels of oil equivalent per day) based on management's estimates o the Acquisition being valued by management on the basis of net 2P reserves in excess of 3 million barrels of oil equivalent ("mmboe").