CALGARY, ALBERTA--(Marketwired - July 17, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN UNITED STATES
Iona Energy Inc. (TSX VENTURE:INA) ("Iona" or the "Company") is pleased to provide an update related to its Huntington Oil Field located in the UK North Sea, as well as a total production update for the Company.
Huntington and Corporate Production
Current production from the Huntington Oil Field is approximately 24,500 boepd gross (21,700 bopd of oil and 16.9 MMscf/d of natural gas). Net to Iona, production is approximately 4,300 boepd, which includes the Company's royalty interests. Iona owns a 15% working interest and a 2.55% royalty interest at the Huntington Oil Field. As a result of the increased production at Huntington, Iona has reached a new production record of approximately 5,600 boepd, a 62% increase over its last publicized production rate of 3,464 boepd announced on June 10th, 2013. Iona's net production is expected to increase to over 7,500 boepd as Huntington reaches production capacity.
With the majority of the gas compression issues having been resolved, production is expected to continue to increase towards the Floating Production Storage and Offloading ("FPSO") unit capacity of 30,000 bopd and 27 MMscf/d within the next few weeks. Iona has been advised by the operator of the FPSO that the B-train gas compression system has been stabilized, allowing for Huntington production to surpass the 20,000 bopd milestone. Upon stabilization of the A-train, production is expected to steadily increase towards full capacity.
There have been three successful liftings of crude oil from Huntington totalling more than 500,000 barrels with a fourth lifting of over 200,000 bbls due on July 21st, 2013. Huntington produces 43º API light oil, and to date the oil has sold between par and a slight discount to Brent (USD 2/bbl). The realized price is expected to increase once the refineries see continued and regular shipments, and in the future Iona believes that Huntington production will yield a premium to Brent. Huntington gas production has realized USD 8.52/mcf.
The working interests in the Huntington field are E.ON Ruhrgas UK E&P (25% Operator), Premier Oil plc (40%), Norwegian Energy Company ASA (20%), and Iona (15%). In addition to the working interest, Iona holds a gross overriding royalty of 2.55% of total Huntington production, payable from the 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.
Some of the statements in this announcement are forward-looking, including statements regarding estimates of the quantities of reserves, associated net present values of future revenue therefrom, and contingent resources in the Huntington field. 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 production, 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, including the assumption with respect to the timing and effects of commissioning gas compression systems for Huntington which are beyond Iona's control, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements, including without limitation, the risk of unanticipated delays impacting production rates at Huntington. 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.
Additionally, this press release uses certain abbreviations as follows:
|Oil and Natural Gas Liquids||Natural Gas|
|bbls||barrels||mcf||thousand cubic feet|
|MMbbls||millions of barrels||MMscf||million standard cubic feet|
|MMboe||million barrels of oil equivalent||Bcf||billion cubic feet|
|boepd||barrels of oil equivalent per day|
|bopd||barrels of oil 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.