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 the successful placing of a USD 275 million senior secured bond (the
"Bond") issued by its UK subsidiary Iona Energy Company (UK) Limited (the
"Issuer").


The net proceeds from the Bond issue will be used to refinance the Senior
Secured Borrowing Base Facility (the "BBF") of which approximately USD 143
million is outstanding and to retire all or parts of its existing structured
energy derivative transaction ("Structured Derivative Transaction"). Additional
proceeds of the Bond issue are expected to enable the Company to fund the
delivery of its key development projects Orlando and Kells to first oil. The
Bond will provide the Company with enhanced financial flexibility through
improved access to cash flow from its producing assets, Huntington and Trent &
Tyne, and increased debt financing for its upcoming development expenditures,
while offering general terms and conditions which are less restrictive than
those of the BBF. 


The Bond, which has a tenor of five years, carries an interest coupon of 9.5%
payable semi-annually and will be issued at 97.5% of par. The amortization
profile is tailor made to match the cash flow profile of Iona's existing asset
base and is structured to enable Iona to bring Orlando, its next significant
development project, on stream before commencing amortization payments.
Commencing 30 months after the Settlement Date, the Bond will amortize 15% of
the issue amount every six months with a 25% final payment at maturity. The
amortizations will be performed at the prevailing call option prices of 105%,
104%, 104%, 103% and 103% of par value with the residual amount payable at 102%
of par value. The Bond is callable at the option of the Issuer at any time. 


The Bond has the usual comprehensive security package including a charge over
all main assets of the Issuer including its interest in the Huntington, Trent &
Tyne, Orlando and Kells fields and the shares of the Issuer and its wholly owned
subsidiary Iona UK Huntington Limited, as well as a parent company guarantee.
The settlement date for the Bond is expected to be September 27th, 2013 (the
"Settlement Date") and is subject to final completion and execution of standard
documentation. The Bond is governed under Norwegian Law and the trustee for the
Bond is Norsk Tillitsmann ASA.


Neill Carson, Iona's CEO commented: "Following a ramp-up period the Huntington
field reached full production capacity of 30,000 bbls/d and 27 MMcf/d in early
September. With this important milestone in place the next vital step in the
further development of Iona was to secure improved flexibility in its financing
for the operated field development projects Orlando and Kells, which are
expected to commence production in 2015 and 2016 respectively. With the
successful closing of the USD 275 million Bond issue, the Company believes it is
fully financed for the development of these key projects which are expected to
lead to a ramp-up in production to 17,000 boe/d by year end 2016, representing
more than a doubling of Iona's existing production. We are very pleased with the
reception of Iona in the international bond market; through the Bond, Iona will
be able to access cash flow from our producing assets and redeploy this cash
flow into new projects in line with our strategy creating a self-financed and
repeatable business model." 


Pareto Securities acted as Sole Manager and Bookrunner of the Bond Issue.

About Iona Energy

Iona Energy is an oil and gas exploration, development and production company
focused on oil and gas development in the United Kingdom's North Sea.


The securities of Iona being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons absent U.S. registration or an applicable exemption from U.S.
registration requirements. This release does not constitute an offer for sale of
securities in the United States.


Forward-looking Statements

Some of the statements in this announcement are forward-looking, including
statements regarding the terms, use of proceeds and anticipated settlement date
of the Bond issue. 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 expected production rates of Iona's assets
and expected first oil dates of Orlando and Kells. 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 outcomes to differ materially from those suggested by any such
statements, including without limitation, the risk that the Bond issue is
delayed or does not settle, or the risk that operational delays impact
production estimates and timing. 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 TSX Venture Exchange nor its Regulation Service Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


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


Iona Energy Inc.
Graham Heath
Interim Chief Financial Officer
UK: +44 7508 932986 or +1 403 605 6726


Iona Energy Inc.
Dave Ricciardi
Investor Relations
+1 403 978 4894

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