Iona Energy Inc. Announces 2012 Financial Results and Year End Reserves

Iona Energy Inc. Announces 2012 Financial Results and Year End Reserves 
CALGARY, ALBERTA -- (Marketwired) -- 04/29/13 --  
Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA)
announces its financial results for the twelve months ended December
31, 2012 and the Company's independently evaluated reserves as of the
same date.  

--  Closed a CAD$92 million equity financing of common shares in April 2012.
--  No short or long term debt as at December 31, 2012 (December 31, 2011 -
--  Total assets of CAD$203.5 million (December 31, 2011 - CAD$72.1
--  Net loss of CAD$10.6 million for the year (2011 - CAD$5.1 million).


--  The Trent and Tyne average production rate over the first 6 months of
    2012 was 2.4 MMscf/d. Following the annual shutdown, the average monthly
    rate reached 2.8 MMscf/d. The average yearly rate was 1.9 MMscf/d,
    mainly due to the production outage for the annual shutdown The average
    realized gas price for the year was strong at $9.05/mscf. 
--  During August 2012, the Ensco 80 jack-up rig commenced operations to
    side-track the Trent & Tyne T6 production gas well with first gas from
    the well achieved in January 2013.
--  Completion of the Orlando well and side-track in April 2013 with better
    than expected results.
--  The Company performed an engineering and portfolio review and advanced
    Orlando development ahead of the Kells Development. 
--  Installed process isolation valving and pipework on Ninian Central to
    allow future hook up and tie in of Orlando without need for shutdown of
    host platform process.
--  Completed the Orlando Environmental Statement and consultation with the
    Department of Energy and Climate Change ("DECC") and obtained final
    Field Development Approval on April 16, 2013. 
--  Iona was awarded three UK North Sea Blocks at 100% working interest,
    including two oil discoveries from DECC in the 27th Licencing Round. The
    three awarded Blocks, 3/7c (part), 3/8c, and 3/12 (part), are located in
    the Northern North Sea, to the south-west of th
e Ninian field and
    immediately adjacent to Iona's 100% Block 3/8d which includes the to-be-
    developed "Kells" Oil and Gas field and the "Ossian" Oil discovery. 


--  Completed the acquisition of the 100% operated interest in the Kells
    field in the first quarter. Exploration operatorship application was
    approved by DECC and the Company submitted an FDP and Environmental
    Statement to DECC during the year. 
--  Completed the purchase of its partners' interests, MPX North Sea Limited
    ("MPX") (30%) and Sorgenia E&P (UK) Ltd ("Sorgenia") (35%), in the
    Orlando Oil field during the third quarter of 2012 in exchange for the
    payment of historical costs and future payments out of production.
--  Completed the acquisition of an operated 58.73% interest in U.K. Block
    13/21a containing the West Wick Oil Field from Centrica Venture
    Production Company ("CVPC") in the third quarter. 
--  On December 28, 2012, the Company entered into a definitive Sale and
    Purchase Agreement with Carrizo Oil & Gas, Inc. ("Carrizo") to acquire
    the entire share capital of its wholly owned subsidiary, Carrizo UK
    Huntington Ltd ("Carrizo UK"), including its 15% interest in License
    P1114 of UK North Sea Block 22/14b including the near-producing
    Huntington oil field development ("Huntington"). The deal completed on
    February 22, 2013.


--  Mr. Alan Curran joined the Company as Chief Operating Officer in March
--  In March 2012, the UK Government doubled the Small Field Allowance
    ("SFA") tax shelter from GBP 75 million to GBP 150 million, which is
    expected to benefit Iona but has not yet been applied to any of Iona's
    qualifying properties. Iona's Orlando and Kells fields will each qualify
    for SFA, representing a total of GBP 300 million of supplementary charge
    tax shelter.
--  17,280,000 and 150,000 stock options were granted during the second and
    third quarters of 2012 respectively.
--  During September 2012, the UK Government announced the Brown Field
    Allowance ("BFA"), which is a new tax relief to encourage investment in
    older oil and gas fields. The BFA will shield up to GBP 250m of income
    in qualifying brown field projects, or GBP 500m for projects in fields
    paying Petroleum Revenue Tax, from the 32% Supplementary Charge rate
    (providing tax relief of up to GBP 80m or GBP 160m respectively). The
    Company welcomes this announcement and hopes to utilize it on its
    qualifying projects in the future.
--  On December 13, 2012 the Company announced that it had entered into a
    definitive agreement for the sale of a 25% non-operated working interest
    in each of its 100% owned Orlando and Kells fields. The sale to Volantis
    Exploration Limited completed on February 21, 2013 for total gross
    proceeds of USD$34 million on close and a pro-rata share of future
    staged payment obligations: USD$1.25 million upon Kells FDP approval;
    and staged payments commencing six months after first production from
    Orlando of USD$1.8 million, USD$1.8 million, USD$1.8 million, USD$0.925
    million, and USD$0.925 million made every six months thereafter. 


--  Company reserves assessed by Gaffney, Cline & Associates Ltd at the end
    of 2012: 
    --  Net 1P Reserves increased 494% to 18.4 million barrels of oil
        equivalent ("mmboe") (2011: 3.1 mmboe) 
    --  Net 2P Reserves(i) increased 497% to 35.8 mmboe (2011: 6.0 mmboe) 
    --  Net 3P Reserves increased 465% to 46.9 mmboe (2011: 8.3 mmboe) 
    --  Net 2P Reserves Pre-Tax Net Present Value (assuming a discount rate
        of 10%) increased 548% to USD$1,185 million (2011: USD$183 million) 

(i)2P Reserves comprises 82% oil and 18% natural gas 
Post Year End 

--  On January 14, 2013, the Company announced that the 44/18-T6 ("T6") well
    on the Tyne Gas Field had been completed as a production well and had
    successfully flow tested at an average rate of 25 million standard cubic
    feet per day ("MMscf/d") with a peak rate of 28 MMscf/d. Iona owns a 20%
    non-operated working interest in both the Trent & Tyne Gas Fields with
    an option to increase interest in both fields to 37.5%.
--  In February 2013, the Company closed a bought-deal private placement of
    common shares (the "Offering"). An aggregate amount of CAD$23 million
    was raised pursuant to the Offering. 
--  The Company completed a USD$60 million structured energy derivative
    transaction with Britannic Trading Ltd., a subsidiary of BP
    International Limited in February 2013 for notional quantities of
    1,360,072 and 6,746,231 barrels of Brent blend crude oil over the period
    April 1, 2013 to March 31, 2014 and April 1, 2014 to March 31, 2018 and
    strike prices of USD$100 and USD$95 respectively.
--  The Company also entered into a Marketing and Off-take Agreement with BP
    Oil International Limited in February 2013. 
--  On February 22, 2013, the Company announced the closing of its
    previously announced Senior Secured Borrowing Base Facility for up to
    USD$250 million of which USD$150 million is currently available with the
    Bank of America
 Merrill Lynch, Lloyds TSB Bank plc and BNP Paribas and
    entered into hedging contracts with these banks for a total of 1,330,791
    barrels of oil over the period April 1, 2013 to March 31, 2014 at a
    strike price of USD$100.
--  The Huntington Field commenced production on April 12, 2013. The field
    has been developed through four production and two water-injection wells
    and is tied back to Teekay's Floating Production Storage and Offloading
    ("FPSO") vessel, the Voyager Spirit, with production capacity of 30,000
    barrels of oil per day and 27 million standard cubit feet of gas per
--  On March 5, 2013, 7,420,000 of stock options were granted at a price of
    $0.63 per share. 
--  At the beginning of April 2013, Brad Gunn, Chief Financial Officer
    ("CFO") resigned as CFO for personal reasons and Graham Heath, currently
    Iona's VP Corporate Development, has assumed the position of interim CFO
    until the Company finds a suitable replacement. Also, Don Copeland,
    currently a member of the Company's Board of Directors, has been
    appointed as the non-executive chairman of the Board of Directors. 

The Company's petroleum and natural gas reserves (the "reserves")
were independently evaluated by Gaffney, Cline & Associates Ltd
("GCA") in accordance with the Canadian Oil and Gas Evaluation
Handbook ("COGEH") reserves definitions and evaluation practices and
procedures as specified by National Instrument 51- 101 ("NI 51-101").
The evaluation uses GCA's forecast prices and costs at December 31,
2012. The Company's Form 51-101F1 Statement of reserves data for the
year ended December 31, 2012 ("Statement of Reserves Data"), which
includes the disclosure and reports relating to reserves data and
other oil and gas information along with the Form 51-101F2 Report on
Reserves Data by GCA and Form 51-101F3 Report of Management and
Directors on Reserves Data and Other Information are available for
review at 
Further details on the above are provided in the Consolidated
Financial Statements and Management's Discussion and Analysis for the
year ended December 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:  
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, anticipated effects of the UK small field allowance,
and estimates of the net present value of future net revenue of
proved and probable reserves from Iona's 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, 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. 
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
It should not be assumed that the present worth of estimated future
net revenue represents the fair market value of the reserves
disclosed in this press release. The reserve and related revenue
estimates set forth in this press release are estimates only and the
actual reserves and realized revenue may be greater or less than
those calculated. The estimates of reserves and future net revenue
for individual properties may not reflect the same confidence level
as estimates of reserves and future net revenue for all properties,
due to the effects of aggregation. 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 press release uses certain abbreviations as

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   
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
Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+011 (44) 7919 057989 
Iona Energy Inc.
Graham Heath
Interim Chief Financial Officer
(403) 605-6726
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