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 settlement of the previously announced USD 275 million senior
secured bonds (the "Bonds") issued by its UK subsidiary, Iona Energy Company
(UK) Limited (the "Issuer"), and full repayment of the Company's Senior Secured
Borrowing Base Facility (the "BBF"). Pareto Securities acted as Sole Manager and
Bookrunner of the Bond issue. 


The settlement date for the Bonds was September 27, 2013 (the "Settlement Date")
and the Bonds will mature on September 30, 2018 after their five year term. The
Bonds carry an annual coupon rate of 9.5% payable semi-annually, were issued at
97.5% of par and are callable in whole or in part at the option of the Issuer at
any time. 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 Bonds
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. 


In addition to repayment and closure of the BBF, proceeds from the Bonds were
also used to retire 3.1 million call options (effective between October 2014 and
September 2016) of the approximately 7.4 million outstanding call options sold
to Britannic Trading Limited, a subsidiary of BP Oil International Limited, in
February of 2013. Further, Bond proceeds have satisfied all payments owed to
Carrizo Oil & Gas, Inc. for the Company's acquisition of its interest in the
Huntington field.


Neill Carson, Iona's CEO commented: "With the net proceeds of this financing,
the Company is well-situated with approximately USD 100 million in current cash
to be used towards the development of Orlando and to expedite other initiatives
within its portfolio of high-quality assets. Importantly, the Bond issue allows
Iona to gain immediate access to previously restricted monthly cash flows from
the Huntington and Trent & Tyne fields. With this foundation, Iona is
financially capable of developing all of its core projects, which are expected
to take production to 17,000 boe/d by the end of 2016, more than doubling Iona's
anticipated 2013 exit rate."


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 business plans and anticipated production levels.
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 assumptions relating to development timelines
and the increase of Iona's working interest in its Trent & Tyne property from
20.0% to 37.5%, 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 of unanticipated delays impacting future
production rates from Orlando. 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. 


Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as
that term is defined in 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 A. Heath
Interim Chief Financial Officer
+44 7508 932986


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

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