Iona Energy Inc.
TSX VENTURE : INA

September 07, 2011 16:04 ET

Iona Energy Updates Orlando Project

CALGARY, ALBERTA--(Marketwire - Sept. 7, 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 its 100% wholly-owned subsidiary, Iona Energy Company (UK) Limited has with its partners on the Orlando Oil Field, entered into an agreement with GE Oil & Gas for the construction of two production subsea trees, one for the Orlando project and an additional tree for potential use on the Orlando Field or other development candidates.

The Orlando Oil discovery is located in Block 3/3b and lies approximately 10 kilometers off the Ninian Oil producing platform in the North Sea U.K. Sector. The Orlando Oil discovery is a three-way fault closed structure approximately 2.5 km long by 0.5 km wide and was discovered in 1989. The Orlando Discovery well 3/3-11 in 1989 flowed 32 (Degree) API Oil on a limited exploration test from the oil bearing Upper Jurassic Tarbert and Ness sandstone reservoirs at a rate of 2,850 barrels of oil per day ("bopd").

As previously announced, the semi-submersible rig Willhunter has been contracted and, on completion of a well it is currently drilling, is expected to spud the Orlando Well in the third or fourth week of September 2011. Iona holds a 35% non-operated working interest in the Orlando project situated in Block 3/3b. The well is expected to take 35 days to drill and an additional 4 or 5 days to conduct an extensive downhole fluid sampling program, to evaluate the well bore, and to suspend the well for later re-entry and completion as a development production well. A decision to acquire an additional test has not yet been decided amongst the partners as the original well was tested, though testing equipment will be available.

Iona's Commercial Manager Peter Campbell commented "Iona with its Orlando partners has, through advanced engineering, the acquisition of the pipeline surveys, and now the commitment to the ordering of the production trees, placed the group in a strong position for timely development of the Orlando field following the drilling of the upcoming Orlando well in the next few weeks."

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 Compnay (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. 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 the estimated drilling times of the Orlando well, 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.

The TSX Venture Exchange Inc. has in no way passed upon the merits of and has neither approved nor disapproved the contents of this press 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