Reserves Report

Ithaca Energy Limited

Reserves Report

13 July 2020

Ithaca Energy Limited (IAECN: ISINs US46567TAA25 / USG49774AA35) ("Ithaca" or the "Company") is pleased to report that a mid-year 2020 independent reserves evaluation has been performed by Netherland Sewell & Associates Inc. ("NSAI").  This report has been produced to satisfy the regulatory requirements of Ithaca's parent company, the Delek Group Limited.

Total proved and probable reserves ("2P") and resources ("2C") as at 30 June 2020 have been estimated to be 258 million barrels of oil equivalent ("MMboe").  Taking into account approximately 13 MMboe of production in the first half of 2020, the Company's 2P reserves outlook is essentially unchanged compared to the year-end 2019 evaluation, as is the 2C resource outlook.  The total resource base is comprised of 191 MMboe 2P reserves and 67 MMboe 2C resources.  This equates to an approximately 10-year reserves and resource life based on forecast 2020 production.

The report summarising the NSAI reserves evaluation is available on the Company's website (www.ithacaenergy.com).  

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Enquiries:

Ithaca Energy

Graham Forbes                     [email protected]                     +44 (0)1224 652 151

Richard Smith                        [email protected]                        +44 (0)1224 652 172

FTI Consulting (Media Enquiries)

Ben Brewerton                       [email protected]                           +44 (0)203 727 1000

Sara  Powell                           [email protected]                          +44 (0)203 727 1000

Notes

The Company's reserves as of 30 June 2020 have been independently evaluated by NSAI, a qualified reserves evaluator, in accordance with the definitions and guidelines set forth in the 2018 Petroleum Resource Management System (PRMS) approved by the Society of Petroleum Engineers (SPE).

The calculation of barrels of oil equivalent ("boe") in the reserves evaluation have been derived by converting gas to oil in the ratio of 5.8 thousand cubic feet ("Mcf") of gas to one barrel ("bbl") of oil.  Boe may be misleading, particularly if used in isolation.  A boe conversion ratio of 5.8 Mcf : 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 5.8 Mcf : 1 bbl, utilising this conversion ratio may be misleading as an indication of value.

About Ithaca Energy

Ithaca Energy is an independent oil and gas company with production, development and exploration operations focused on the UK North Sea.  The Company was founded in 2004 and has grown through a combination of acquisitions and new field developments.  Our strategy is focused on establishing the company as a leading North Sea operator, delivering sustainable growth in free cash flow generation, underpinned by operational excellence and financial discipline.

Ithaca Energy is a wholly owned subsidiary of the Tel Aviv stock exchange listed Delek Group Limited (TASE: DLEKG, US ADR: DGRLY), Israel's leading integrated energy company. For further information please consult the Company's website www.ithacaenergy.com.

Forward-looking Statements

This press release contains projections, information, beliefs, opinions and other forward-looking statements (collectively "forward-looking statements") regarding future events and the performance, financial condition, results of operations and business of the Company. All statements and information other than present and historical facts contained in this release are forward-looking. When used in this press release, the words and phrases like "forecast", "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe", "could", "target", "in the process of", "on track" and similar expressions, and the negatives thereof, whether used in connection with production forecasts, reserve and resource estimates, operational activities, drilling plans, anticipated timing for the commencement of production from new fields and wells, budgetary figures, future operating costs, financing activities, anticipated net debt, anticipated funding requirements and uses of available credit under the Company's debt facilities, the financial benefits of commodity hedging arrangements, potential developments including the timing and anticipated benefits of acquisitions and divestments or otherwise, expected future payments in connection with acquisitions and divestments, statements relating to reserves, or otherwise, are intended to identify forward-looking statements. Forward-looking statements are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, including, among other things, assumptions with respect to production, drilling, construction and maintenance times, well completion times, risks associated with operations, future capital and operating expenditures, financing activities, continued availability of financing for future capital expenditures, future acquisitions and divestments and cash flow, required regulatory, partner and other third party approvals. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Such statements are not promises or guarantees and are subject to known and unknown risks, uncertainties and other factors that are in many cases beyond the control of the Company and that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Past performance of the Company cannot be relied on as a guide to future performance. The Company believes that the expectations reflected in those forward-looking statements are reasonable at the date of this press release but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.