CALGARY, ALBERTA--(Marketwire - March 30, 2012) -
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 Orlando appraisal well 3/3b-13 has reached its total depth target within the planned trajectory for the development well. The top of the reservoir was encountered at approximately 13,286 ft Measured Depth (-11,428 ft True Vertical Depth Sub Sea) and logs show the expected Upper Tarbert reservoir is present and is fully oil bearing and more of the underlying Upper Ness reservoir sands oil bearing than in the original discovery well (Well 3/3-11). The oil bearing interval within the Upper Ness exceeds management's expectations.
The well has been drilled to a Measured Depth ("MD") of 14,300 feet, and Total Vertical Depth Sub Sea ("TVDSS") of -12,104 feet in Middle Jurassic (Brent reservoir group) sands and shales. Based on a preliminary evaluation of the logs, the Tarbert and Ness Reservoirs correlate strongly with those same units encountered in the original discovery well 3/3-11. Logging shows the Tarbert contains 76 ft of True Vertical Thickness ("TVT") gross sandstone (60 ft Net) and the Ness contains gross 166 ft of TVT gross sandstone (46 ft Net). An estimated oil column on the Orlando Field of approximately 270 ft above the 11,670 ft TVDSS oil water contact, inferred by the 3/3-11 well, has been confirmed by the 3/3b-13 well.
To date, Iona has met all of its cash commitments to the project. Iona believes the completion of this well meets its license commitment on the block and looks forward to developing the Orlando field with its joint venture partners.
Neill Carson, Iona's CEO, commented, "We have a better than expected well result which keeps us on track for filing our Field Development Plan with expected approval this summer."
Iona Energy also wishes to update the status of its previously announced public offering of a minimum of CAD$60 million of common shares of the Company and a maximum of CAD$80 million of common shares (the "Offering"). The closing of the Offering is conditional on receipt by the Company of final credit approval from the lenders for its credit facility as further described in the Company's news release dated February 28, 2012 and other customary regulatory approvals, which have been obtained.
Iona has received first stage credit and capital committee approvals from all lenders and the Company expects to receive final credit committee approvals from the lenders on or about April 4, 2012 with the equity Offering to close shortly thereafter.
"Subject to definitive agreements, final terms of the facility have been agreed and the last of our lenders are completing the final steps in their rigorous credit processes, for which we expect to receive a positive result on shortly." commented Brad Gunn, Iona Energy's CFO.
Mr. Gunn also stated "This is a relatively large credit facility with more than one lender and each has their own processes and stages of approvals. As soon as we receive final credit approval we will move swiftly to close on the Offering. On closing, we expect to be fully funded for our planned development activities."
About Iona Energy:
Iona Energy Inc. 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.
Additional information relating to the Company is available on SEDAR at www.sedar.com.
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 development of the Orlando well 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.