INA

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
provide an operational and corporate update following the recent completion of
the acquisition of Sorgenia E&P (UK) Ltd. and MPX North Sea Limited's combined
65% interests in the Orlando Oil Development ("Orlando").


Highlights



--  Drilling of Tyne T5z development gas well to commence at end of July; 
--  Obtained an extension on West Wick oil field Purchase and Sale
    Agreement, expected to close before end of August, which will take
    Iona's total Proved plus Probable ("2P") reserves to 32MMboe with a Pre-
    Tax NPV10 of USD$1.19 billion;(1) 
--  A total portfolio, operational and engineering review has led to the
    decision to advance the development of the Orlando oil field ahead of
    the Kells oil and gas field; 
--  Re-engineered Field Development Plan ("FDP") at Orlando to provide
    management estimated peak flow rates above 14,000 barrels of oil per day
    ("bopd"); 
--  The Company has entered into discussions with potential partners to
    share in the development of the Orlando and Kells assets; 
--  Current cash position of $94MM; and 
--  Iona has submitted a number of targeted bids in the UK's 27th Licensing
    Round for additional proved undeveloped discoveries.



Trent & Tyne

The Company's net production from its 20% owned Trent & Tyne gas fields averaged
over 2.3 million cubic feet per day ("MMcf/d") in the second quarter with
average realized gas prices over that period of $8.67/per mcf (55p/therm). The
operator of Tyne, Perenco, has informed the Company that the Ensco 80 jack-up
rig is expected to arrive at the end of July to commence drilling of the T5z
production sidetrack well. Drilling operations are expected to take up to 75
days to complete. On success, management expects production from Trent and Tyne
to increase from 2.3 MMcf/d to 8 MMcf/d net to Iona (20% W.I.).


West Wick

As of July 10, 2012 the Company sought and received a completion date extension
to its previously announced Purchase and Sale Agreement. All partner consents
have been received and the Company expects to receive UK Department of Energy
and Climate Change ("DECC") approval of the license transfer within the next 45
days.


Orlando and Kells

As part of the Orlando acquisition, Iona performed an engineering and portfolio
review of the operator's development plans and its own development plans at
Kells to determine the optimal go forward program. As a result, it was
determined the ideal sequencing put the Orlando development ahead of the Kells
development. The results of the review were driven by several factors,
including: 




--  Orlando is expected to deliver higher net revenue due to greater initial
    Brent oil production (Orlando 14,000 bopd vs. Kells 5,800 bopd); 
--  Preferential alignment with CNRL International Limited's ("CNRL") work
    program at Orlando's tie-back host, the Ninian Central Platform ("NCP"),
    during its planned maintenance shutdown window in August and September; 
--  First Orlando development well is currently suspended awaiting re-entry
    and bottom-hole completion; 
--  In addition to contracted Ocean Nomad rig, Iona is currently negotiating
    with multiple rig owners for a second rig slot; 
--  Delay in the expected arrival of the Ocean Nomad semi-submersible
    drilling rig to drill the development well at Kells.



The Orlando Environmental Statement and consultation with DECC is now complete.
A re-engineered Orlando FDP is being finalized for submission. Optimized
engineering for Orlando will provide peak capacity above 14,000 bopd. The
Company has also secured two subsea Xmas trees and additional subsea equipment
and services to advance the Orlando development. The Company expects to receive
final DECC FDP approval in the third quarter of 2012.


The Kells oil and gas FDP has been submitted to DECC. The FDP submission
reflects a recently reported 2P reserve upgrade by Iona's reserve evaluators,
Gaffney Cline & Associates Ltd. ("GCA") from 6.6 to 8.9MMboe.(2) Engineering
work is ongoing on the NCP for the Kells production entry point and processing
stream. Iona has secured two subsea Xmas trees for Kells. Management expects to
receive final DECC FDP approval early in the first quarter of 2013. 


Corporate

In light of its acquisition of the remaining interest in the Orlando development
and corresponding planned capital expenditures, the Company is in the process of
seeking aligned partners to share in the development of both the Orlando and
Kells assets. The Company does not intend to issue further equity to fund these
developments.


In addition to $94MM of cash on hand, the Company continues to work with its
lenders to close its previously announced USD$130MM credit facility. Management
believes it can increase its go forward credit capacity.


Notes:

(1) Based on reserves and net present value information attributed to Iona's
interests in the Orlando and Trent & Tyne fields by GCA, using forecast prices
and costs effective as of December 31, 2011 (as disclosed in Iona's Form
51-101F1 for the year ended December 31, 2011.), together with reserves and net
present value information attributed to Iona's interests in the Kells and West
Wick fields by GCA, using forecast prices and costs effective as of March 31,
2012. Barrels of oil equivalent (boes) are based on a conversion ratio of 6 mcf
per bbl for natural gas.


(2) Based on reserves attributed to the Kells field by GCA effective as of March
31, 2012 (as disclosed in Iona's June 7, 2012 press release.).


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.


Forward-looking statements

Some of the statements in this announcement are forward-looking, including
statements regarding the completion and timing of the West Wick acquisition,
Iona's plans with respect to development of the Orlando property, 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 does not complete the West Wick
acquisition for any reason, 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

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. 

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 follows:



Oil and Natural Gas Liquids           Natural Gas                           
----------------------------------------------------------------------------
bbls         barrels                  mcf          thousand cubic feet      
MMbbls       millions of barrels      MMcf         million cubic feet       
MMboe        million barrels of oil   Bcf          billion cubic feet       
             equivalent                                                     
bopd         barrels of oil per day

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