Iona Energy Inc.

TSX VENTURE : INA


Iona Energy Inc.

March 05, 2014 15:30 ET

Iona Energy Announces Production Increase

CALGARY, ALBERTA--(Marketwired - March 5, 2014) -

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 an operational update related to its Huntington Oil Field located in the UK North Sea.

During February 2014, Iona produced on average 5,150 boepd as long periods of inclement weather previously experienced in the region subsided. Net to Iona, February's production levels represent an increase of 54% over the 2013 fourth quarter average and 84% over January 2014 volumes.

The month saw gross Huntington production peak at 34,420 boepd (6,041 boepd net to Iona) with a monthly average of 28,000 boepd (4,914 boepd net to Iona) resulting from minor delays to offloading due to weather. The Voyageur FPSO continues to perform well, having passed its Performance & Reliability Test on March 1st. To date, Huntington has offloaded 19 cargos and produced over 4 million barrels of oil equivalent with Iona's net share of production being above 0.7 million barrels of oil equivalent. The Huntington partnership continues to realize Brent prices above the year to date average of USD108.42/bbl, and gas prices in the UK remain robust above USD10.50/mcf.

The working interests in the Huntington field are E.ON E&P UK Ltd (25% Operator), Premier Oil plc (40%), Noreco Oil (UK) Limited (20%), and Iona (15%). In addition to the working interest, Iona holds a gross overriding royalty of 2.55% of the total Huntington production, payable from the other Huntington joint venture partners.

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

About Iona Energy:

Iona 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.

Notes Regarding Oil and Gas Disclosure

As used in this press release, "boe" means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Additionally, this press release uses certain abbreviations as follows:

Oil and Natural Gas Liquids Natural Gas
boepd barrels of oil equivalent per day mcf thousand cubic feet

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
    +44 1224 228400

    Iona Energy Inc.
    Graham A. Heath
    Interim Chief Financial Officer
    +44 7508 936982

    Iona Energy Inc.
    David Ricciardi
    Manager, Investor Relations
    +1 403 978 4894