Iona Energy Inc.
TSX VENTURE : INA

February 13, 2012 11:01 ET

Iona Energy Contracts Diamond Drilling Semi-Submersible Rig Ocean Nomad for Staffa Campaign

CALGARY, ALBERTA--(Marketwire - Feb. 13, 2012) -

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 its UK Subsidiary, Iona Energy Company (UK) Limited, has entered into an agreement with Diamond Offshore Drilling (UK) Limited for the provision of its semi-submersible drilling rig, the Ocean Nomad, for the drilling of one well within the Staffa Oil Field in Block 3/8d of the UK North Sea. The well is scheduled to begin in August of 2012.

Staffa is a Jurassic Brent Group field with proven oil in the Upper Ness and Tarbert reservoir formations. Structurally Staffa is a typical Brent oil province field, formed of a rotated Jurassic fault block, divided into 3 fault compartments running from north to south, all of which have been penetrated by at least 1 well. The re-development is aimed at the central Staffa 'Main' fault block. Details on the estimated reserves attributed to the Staffa Main Field compartment have previously been released.

Iona's Field Development Plan for the Staffa Field is currently being reviewed by the UK regulator (the Department of Energy and Climate Change) and the drilling plan for the field includes two production wells phased approximately 12 to 18 months apart. The Ocean Nomad will drill the first well up-dip from the 3/8b-14z well that produced in 1994 and completion is planned across the Tarbert and Upper Ness intervals. Iona expects the initial production rate to be above 10,000 boepd. In the first half of 2014, the second well will be drilled along strike and to the north of 3/8b-10, with future consideration being given to utilize this second well for water injection.

Dave Sherrard, Iona's Chief Development Officer commented "We are delighted to have contracted Diamond Offshore's Ocean Nomad for the near-term drilling of Iona's first well in the re-development of the Staffa Oil Field. This is a crucial step as our team continues to secure the remaining development facilities and services that will get Iona to first oil within a year."

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

About Iona Energy:

Iona Energy Inc. 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 Iona's plans with respect to development of the Staffa property and estimated initial production rates. Forward-looking statements include statements regarding the intent, belief and current expectations of Iona Energy Inc. or its officers with respect to various matters, including reserves, production, first oil, drilling activity or otherwise. 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. 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.

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.

Estimates of initial well production rates are estimates only and may not be indicative of long-term performance or of ultimate recovery.

Additionally, this press release uses certain abbreviations as follows:

Oil and Natural Gas Liquids Natural Gas
bbls barrels mcf thousand cubic foot
MMbbls millions of barrels
MMboe million barrels of oil equivalent
boepd Barrel of oil equivalent per day

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