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) 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.


Forward-looking statements

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:



  Natural Gas                       
------------------------------------
  Mcf    thousand cubic feet        
  MMscf  million standard cubic feet

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