Iona Energy Inc.

May 30, 2012 15:40 ET

Iona Energy Inc. Announces 2012 First Quarter Results

CALGARY, ALBERTA--(Marketwire - May 30, 2012) -


Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA) announces its financial results for the three months ended March 31, 2012.

Neill A. Carson, Iona's CEO commented, "The first quarter of 2012 has seen further growth in the Company with the Kells acquisition and fast track development of the field. Further growth is anticipated during the remainder of 2012 with the expected completion of the West Wick acquisition, the development of the Orlando field and potential licence awards from the 27th UK licencing round."

Highlights for the period ended March 31, 2012


  • Exploration and evaluation assets of CAD$51.4 million (December 31, 2011- CAD$28.2 million).
  • Total assets of CAD$76.0 million (December 31, 2011 - CAD$72.1 million).
  • Net loss of CAD$1.0 million (or CAD$0.007 per share) for the period.
  • Issue of a cash-backed letter of credit for £4.26 million pounds (CAD$6.8 million) for the Company's share of future decommissioning costs for the Trent & Tyne properties.
  • No short or long term debt as at March 31, 2012 (December 31, 2011 - $Nil).


  • Better than expected well result from the Orlando appraisal and development well.
  • Contracts awarded for the drilling of the Kells development well, the most significant of which was a contract with Diamond Offshore Drilling (UK) Limited for the provision of its semi-submersible drilling rig.
  • Contracts awarded for the Kells field development covering project management, engineering, Xmas trees and procurement of other equipment.
  • Net production to Iona from the Trent & Tyne fields for the quarter was 2.3 MMscfd and the average realized gas price was 56.18 p/therm (or approximately USD$9.04/mcf).


  • Completion of the acquisition of the 100% operated interest in the Kells field and fast track development progressing with exploration operatorship application approved by the Department of Energy and Climate Change ("DECC") and submission of a Field Development Plan and Environmental Statement to DECC.
  • Signed a definitive sale and purchase agreement to acquire a 58.73% working interest, including operatorship, in the West Wick oil discovery on UK Block 13/21a.


  • Mr. Alan Curran joined the Company as Chief Operating Officer.
  • In March 2012, the UK Government doubled the Small Field Allowance ("SFA") tax shelter from £75 million to £150 million.

Post Quarter Events

  • Closing of a CAD$92 million equity financing of common shares.
  • Credit approval from lenders on a corporate senior secured reserve based lending facility of USD$130 million.
  • £20 million paid into a trust account as an upfront payment for the T5-z well, which is to be drilled in July 2012.

Further details on the above are provided in the Condensed Consolidated Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2012, which have been filed with securities regulatory authorities in Canada. These documents are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at and on the Company's website at

Iona is an oil and natural gas acquisition, appraisal, and development corporation active through its 100% wholly owned United Kingdom subsidiary, Iona Energy Company (UK) Ltd. in the United Kingdom's Continental Shelf ("UKCS").

Forward-looking statements

Some of the statements in this announcement are forward-looking, including statements regarding Iona's plans for the development of its properties. 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, whether used in connection with estimated production levels and future activity or otherwise, are intended to identify forward-looking statements. Such statements are not promises or guarantees, 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.

Note: "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. As used in this press release, possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

Additionally, this news release uses certain abbreviations as follows

Oil and Natural Gas Liquids Natural Gas
bbls barrels mcf thousand cubic feet
Mbbls thousand barrels mcf/d thousand cubic feet per day
MMbbls million barrels scf standard cubic foot
bbls/d barrels per day MMscf millions of standard cubic feet
bopd barrels of oil per day MMscf/d millions of standard cubic feet per day
NGLs natural gas liquids Bscf billion standard 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 Company
    Neill A. Carson
    Chief Executive Officer
    +011 (44) 7919 057989

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