CALGARY, ALBERTA--(Marketwire -08/13/12)- NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES
Iona Energy Inc. ("Iona" or the "Company") (INA.V) has been advised today by the operator of the Tyne Gas field that the Ensco 80 jack-up rig has commenced operations to side-track the T5 production gas well. Iona owns a 20 per cent interest in both Trent and Tyne Gas Fields with an option to increase interest in both the Fields to 37.5 per cent. The average realized gas sales price for the summer month of June 2012 was $8.61 per Mcf.
Drilling operations are planned to side-track the original T5 well that flowed at peak production rates of 25 MMscf per day from the Carboniferous Ketch reservoirs located within the Tyne North compartment of the field. Pressure testing of the T5 well conducted in March 2009 has indicated that the targeted reservoir pressure behind pipe is 5126 pounds per square inch.
The objective of the T5Z side-track is to relocate the high water-cut vertical production well up-structure and complete with a high angle reservoir section. It is anticipated that the standoff from the identified gas water contact will be increased and gas production re-established at a target rate of 20 MMscf per day (consistent with Iona's reserve auditors', Gaffney Cline & Associates, 2011 Year End 2P Projection), representing more than USD$20 million per year of net sales revenue at current gas prices.
The duration of the drilling operation and re-completion for onset of production is estimated to take 90 days. Iona's net cost exposure is capped at GBP 21.2 million (approximately USD$32.9 million).
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 expected drilling results from Iona's properties, estimates of the quantities of proved reserves, probable reserves, and possible reserves, as well as estimates of the net present value of future net revenue of proved reserves, probable reserves, and possible reserves. 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, including without limitation, the risk that Iona's development plans change as a result of new information or events, and the risk that drilling results differ materially from management's current estimates. 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
The production rates and related revenue estimates set forth in this press release are estimates only and the actual production rates and realized revenue may be greater or less than those calculated.
Additionally, this press release uses certain abbreviations as follows:
Mcf thousand cubic feet
MMscf million 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.
Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+011 (44)(0)1224 228400
Iona Energy Inc.
Brad G. Gunn
Chief Financial Officer