Ithaca agrees to farm-out

Dana Petroleum and Tullow Oil are farming into Ithaca Energy's UK license P1245 covering blocks 48/3a and 48/4 in the southern North Sea.

Offshore staff

LONDON, UK --Dana Petroleum and Tullow Oil are farming into Ithaca Energy's UK license P1245 covering blocks 48/3a and 48/4 in the southern North Sea.

Subject to government approval, each will pay one third of the costs of a 3D seismic program conducted over the acreage last year, and of a well to test the Leman sandstone. In return, both will earn a 25% interest in the license. The acreage also includes the Morpheus gas prospect.

Farther north, the jack-upGSF Galaxy II has arrived in the North Sea, and should start drilling the Basil prospect for Ithaca next month in block 12/21c in the Inner Moray Firth.

Ithaca also has a letter of intent to use the semisubmersibleByford Dolphin for a second appraisal well this summer on its Athena oil discovery. It recently completed a pipeline route survey between Athena and Talisman's Claymore platform, and the two companies have initiated engineering studies relating to reception and processing of Athena's oil. Ithaca aims to submit a development plan for Athena this summer.

3/29/2007

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