Iona Energy Inc.
TSX VENTURE : INA

November 02, 2011 15:00 ET

Iona Energy Announces Orlando Well Spud

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES

Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA) is pleased to announce that the Orlando Appraisal well in 3/3b spudded on November 2nd at 10:43 AM GMT. The semi-submersible drilling rig Awilco Wilhunter is anticipated to be on location for approximately 45 days, drilling a deviated well which will be suspended for a future re-entry and conversion to a producing well once the Orlando Development commences. The total depth is anticipated to be 14,245 ft or approximately 12,000 ft vertically. The well is targeting a producing Brent horizon that flowed at 2,800 barrels of oil per day in the discovery well 3/3b-11. Iona has a 35% working interest in the Orlando License, the other partners of which are MPX North Sea Limited (the Operator), having a 30% working interest, and Sorgenia E&P (UK) Ltd., having a 35% working interest.

Iona's Chief Executive Officer Neill Carson commented: "Iona and our partners are pleased to be on location and drilling at Orlando where we have high expectations for a well-executed program and successful outcome. The WilHunter will take approximately 35 days to get to total depth with the remaining time spent on fluid sampling and verifying that the well location has been de-risked. We are continuing to aggressively explore the operational and commercial synergies of developing Orlando alongside the nearby Staffa field in which we intend to be Operator with a 100% working interest upon the completion of Iona's proposed acquisition of Staffa from Fairfield Cedrus Limited. We also expect to sign a definitive sale and purchase agreement for the acquisition of Staffa from Fairfield shortly. The Iona team is excited to watch our efforts coming to fruition."

Additional information relating to the Company is available on SEDAR at www.sedar.com.

About Iona Energy:

Iona Energy Inc. and its wholly owned subsidiary Iona Energy Company (UK) Limited (collectively, "Iona" or the "Company"), is an oil and gas exploration, development and production company focused on oil and gas development and exploration in the United Kingdom's North Sea.

Forward-looking statements

Some of the statements in this announcement are forward-looking, including statements regarding the anticipated agreement, terms and timing of the proposed transaction with Fairfield, and statements regarding the anticipated timing to drill a well on Iona's Orlando property. Forward-looking statements include statements regarding the intent, belief and current expectations of Iona Energy Inc. or its officers with respect to various matters. When used in this announcement, the words "expects," "believes," "anticipate," "plans," "may," "will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, are based on various assumptions by Iona's management and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. Some of the risks and uncertainties relating to the proposed transaction with Fairfield include: uncertainty of the final terms of the definitive agreement, the receipt of required regulatory approvals, including approval from DECC, and Iona's ability to finance the acquisition. These forward-looking statements speak only as of the date of this announcement. Iona Energy Inc. 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.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Iona Energy Inc.
    Neill A. Carson
    Chief Executive Officer
    +011 (44) 7919 057989

    Iona Energy Inc.
    Brad G. Gunn
    Chief Financial Officer
    (403) 775-7442