Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited, has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field from Hess Limited. At completion of the transaction, Ithaca paid an adjusted cash consideration of US$57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.

Cook Field - Non Operated

Ithaca has acquired an interest in the producing Cook Field which is located in Block 21/20a in the UK Central North Sea and operated by Shell U.K. Ltd. Ithaca's share of production is sold under contract to a subsidiary of Shell Trading International Limited based on the monthly average Brent oil price.

Tags: Ithaca Energy Inc.