Total Discovers Hydrocarbons at Norvarg Appraisal Well

Ithaca Energy Inc. announces that the appraisal well (7225/3-2) being drilled on the Norvarg discovery, located in PL535 in the Norwegian sector of the Barents Sea, has confirmed the presence of hydrocarbons in the Kobbe formation based on the results of wire line logs and formation tests and cores.

The partnership has decided to perform a drill stem test (DST) on the well to assess the quality of the Kobbe reservoir and the volume potential in the northeastern part of the Norvarg closure.

Appraisal drilling operations commenced on 25 April 2013. The well is being drilled using Ocean’s Leiv Eiriksson semi-submersible rig. The well is located in 377 metres of water, approximately 275 kilometres north of the Hammerfest LNG plant on Melkoya.

The partners in the licence are Total E&P Norge (operator – 40 per cent interest), North Energy (20 per cent), Ithaca Petroleum Norge (13 per cent), Statoil (10 per cent*), Det Norske (10 per cent*), and

Rocksource Exploration Norway (7 per cent).

Licence Round Award

Ithaca also announced the award of licence PL535B in the 22nd Licensing Round on the Norwegian Continental Shelf. The licence, which covers part of Block 7225/2, is an extension of the existing

PL535 licence in which the Norvarg discovery is located. The licence work programme will follow that of PL535, with both licences having the same partners and working interests.