North Sea Stella enters drilling, subsea installation phase

Ithaca Energy (TSX: IAE, LSE AIM: IAE) is moving forward on its Greater Stella Area project in the UK central North Sea.

Offshore staff

CALGARY, Canada –Ithaca Energy (TSX: IAE, LSE AIM: IAE) is moving forward on its Greater Stella Area project in the UK central North Sea.

The semisubmersible productionplatformFPF-1 has been moved on to the dry dock barge at the Remontowa shipyard in Gdansk, Poland. Delivery has started of long lead topsides processing plant equipment and pipework.

An Ensco jackup has completed operations on wells being drilled prior to the start of the main development drilling program.

Fabrication of subsea structures is complete at Global Energy Group's facilities in northeast Scotland. Installation and testing of pipework spools, valves, and control systems that will be fitted within the structures is nearly complete.

Welding is under way at Technip's Evanton spool base in northeast Scotland on the 10-in. steel export linepipe thatTechnip will install offshore later this year, along with the subsea structures.

Elsewhere in the central sector, Ithaca has agreed to farm out to Shell half of a 40% interest in license P1792. Ithaca inherited this interest, which covers blocks 21/30f and 22/26c, following its acquisition of UK-based independentValiant Petroleum

Shell will part-carry Ithaca's remaining 20% share of the costs of a well to be drilled by early 2015 on the Beverley prospect.

Beverley is on the flank of an undrilled salt diapir, analogous with other structures in the area, and is situated close to the Shell-operated Gannet fields.

The agreement with Shell is subject to normal regulatory consents.

As part of the integration process, Valiant's UK office is being closed and all remaining activities are being transferred to Ithaca's operations base in Aberdeen.

5/13/2013

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