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
announce an operational update for its Huntington and Trent & Tyne producing
fields, to which Iona has a 15% working plus 2.55% royalty interest and 20%
working interest, respectively. On May 14th, 2013 the Company produced a new
record production level of approximately 2,960 boepd, which is expected to
increase in the coming weeks to approximately 4600 boepd and reach a new
production threshold of 7,500 boepd by the end of June, based on the anticipated
increase of the Company's working interest in Trent & Tyne from 20% to 37.5% and
the anticipated increase in Huntington production to maximum capacity (4,500
bbls/d of oil and 4.0 MMcf/d of natural gas, both net to Iona) as described
below. 


Huntington 

At the Huntington field, the Company has been informed by the Operator that
production, which commenced Friday April 12th, 2013, has reached a rate of 7,625
bbls/d. Production is expected to increase to the predetermined Floating
Production Storage and Offloading unit (FPSO) capacity of 30,000 bbls/d of oil
and 27 MMcf/d of natural gas once the gas compression systems have been
commissioned, which is scheduled to occur shortly. Once the gas compression has
been initiated, production should ramp up to full capacity during June. 


Production at Huntington is lifted in approximately 200,000 barrel increments,
and the first shipment occurred on May 16th, 2013. Huntington produces 43
degrees API light oil, which yields a premium to Brent, and Iona estimates
current operating costs to be USD$15/boe. 


Iona engaged Gaffney, Cline & Associates Ltd. ("GCA") to prepare an independent
reserves evaluation of the Huntington Field and expects to provide their
findings shortly. The Huntington Oil Field has discoveries made in three
horizons, the Paleocene Forties formation, the Jurassic Fulmar formation and the
Triassic Skagerrak formation. At this time, reserves will only be assigned to
the Paleocene Forties formation, which has been developed through four
production and two water-injection wells to achieve the aforementioned capacity
figures. Huntington discovery well 22/14b-5 drilled by a previous operator
tested at peak rates of up to 4600 bbls/d and 1.6 MMcf/d from the Fulmar sand,
suggesting that development of this reservoir could extend the economic life of
Huntington. Iona is considering joint venture appraisal drilling of the adjacent
Fulmar compartment. Additionally, work is ongoing to evaluate the recoverable
resources within the Jurassic Fulmar and Triassic Skagerrak oil-bearing
intervals which Iona believe could be significant if tied back to the Huntington
production facility. Iona will provide a further update once the results of this
evaluation are completed. 


The working interests in the Huntington field are E.ON Ruhrgas UK E&P (25%
Operator), Premier Oil plc (40%), Norwegian Energy Company ASA (20%), and Iona
(15%). In addition to the working interest, Iona holds a gross overriding
royalty of 2.55% of the total Huntington production, payable from the Huntington
Joint Venture Partners. 


The Company is also pleased to announce that it has entered into a binding Sales
and Purchase Agreement for the acquisition of a 100% working interest in part of
UKCS block 22/14d from Carrizo Oil & Gas, Inc., and is awaiting final completion
pending formal regulatory approval from the UK DECC. 


Block 22/14d is located in the Central North Sea, immediately to the south of
Block 22/14b, containing the Huntington Palaeocene oil field, the Jurassic
Fulmar, and the Triassic Skagerrak discoveries in which Iona has a 15% stake. 


As described above, and based on 3D seismic mapping, Iona has identified two
undrilled Fulmar appraisal targets to the south of the Huntington Area, one
within 22/14b (Iona 15%), and one within the newly acquired block (Iona 100%). 


Iona is also in the process of evaluating two Triassic Skagerrak discovery wells
which encountered significant oil columns. Well 22/14-3 with a 389 ft oil column
lies within the 22/14d block (Iona 100%), and 22/14-4 with a 139ft oil column is
on the northern margin of the new block, located within block 22/14b (Iona 15%).



Iona plans to remap both the Jurassic targets and Triassic discoveries in the
near-term, and future appraisal could see these as candidates for development
through the existing infrastructure at the producing Huntington field. 


Trent & Tyne 

At the Trent & Tyne Fields, the Company has been informed by the Operator that,
as of May 13th, 2013, both were producing at a combined production rate of 43.3
MMcf/d, net 8.7 MMcf/d to Iona. Production at the 44/18-T6 ("T6") well on the
Tyne Gas Field has exceeded expectations and is currently producing at a
stabilized rate of 28 MMcf/d. In January of this year, Iona announced that the
T6 well was completed as a production well and flow-tested at an average rate of
25 MMcf/d, with a peak rate of 28 MMcf/d during an 8-hour production test. Iona
realized USD$/mcf 9.82 gas price on May 14th, 2013, the day of the reported new
peak production. 


Iona holds an option to increase its working interest at Trent & Tyne from 20%
to 37.5% after electing to drill the Tyne Northwest target at a capped cost of
USD$34 million. Earlier in the year Iona notified the Operator that it intends
to exercise its option in both fields and plans to announce at the earliest
opportunity the completion of this transaction, which is subject to third party
approvals, and has an economic date enabling Iona to fully benefit from the
higher combined production from the two fields at its 37.5% working interest. 


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 Iona's estimated production rates and timelines related to
its Trent & Tyne and Huntington properties, the anticipated increase of Iona's
working interest in Trent & Tyne from 20.0% to 37.5%, and the anticipated
closing of Iona's acquisition of UKCS block 22/14d,. 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
production, 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, including the assumption that Iona increases its working interest in
Trent & Tyne from 20.0% to 37.5%, the assumption that Trent & Tyne production
rates remain stable, and assumptions with respect to the timing and effects of
commissioning gas compression systems for Huntington which are beyond Iona's
control, 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 for any reason Iona does not
increase its working interest in Trent & Tyne, the risk of unanticipated delays
impacting production rates at Trent & Tyne or Huntington, and the risk that Iona
does not close the acquisition of UKCS block 22/14d. 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.  


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    MMcf/d            million cubic feet
                  oil equivalent                          per day           
                                                                            
boepd             barrels of oil                                            
                  equivalent per day                                        
                                                                            
bopd              barrels of oil per                                        
                  day                                                       



FOR FURTHER INFORMATION PLEASE CONTACT: 
Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+44 1224 228400


Iona Energy Inc.
Graham A. Heath
Interim Chief Financial Officer
+44 7508 936982

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