Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") announces that it has completed the transaction entered into with MOL Plc ("MOL") in April 2015 for the sale of its wholly owned subsidiary, Ithaca Petroleum Norge AS ("Ithaca Norge").

The initial consideration paid to Ithaca was US$60 million, with the Company having the ability to earn future potential bonus payments of up to US$30 million dependent on successful discoveries being drilled on Ithaca Norge’s existing licence portfolio between 2015 and 2017.

Following repayment of the Company’s Norwegian exploration financing facility and conventional working capital adjustments, the net cash payment received by the Company at completion was approximately $30 million. These funds have been used to offset drawings under the Company’s existing bank debt facilities.

The sale of Ithaca Norge concludes the Company’s successful restructuring and monetisation of the Norwegian operations acquired as part of the acquisition of Valiant Petroleum plc in April 2013.

For more information, please visit: www.ithacaenergy.com