Iona Energy Inc. announced that the 44/18-T6 well on the Tyne Gas Field has been completed as a production well and has successfully flow tested at an average rate of 25 million standard cubic feet per day with a peak rate of 28 MMscf/d during an 8 hour production test. The well has been handed over for production operations and the rig is preparing to leave the Tyne area. Iona owns a 20% non-operated working interest in both the Trent & Tyne Gas Fields with an option to increase interest in both fields to 37.5%.

As of December 31, 2012 both Trent & Tyne Fields were producing at a combined production rate of 20MMscf/d, net 4MMscf/d to Iona. The contribution from T6 raises the potential gross field production of both Trent & Tyne to 48MMscf/d, net 9.6MMscf/d, at its 20% working interest. Iona has notified the Operator that it intends to exercise its option to increase its interest 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 with the higher 37.5% interest.

On the day of the production test UK Natural Gas prices were $10.89 per thousand cubic feet. The T6 well was drilled as a side-track from the dormant production T5 well to a location higher up structure and to the north of T5 within the same production compartment. The T5 well had previously produced gas at rates of up to 25MMscf/d from a 50 foot gas column close to the gas water contact and had been shut in due to water encroachment.

As planned, the T6 side-track encountered top reservoir 57 feet higher than T5 and 107 feet above the regional GWC. T6 was drilled at a high angle through the reservoir and encountered 92 feet of gas pay. Only the uppermost 30 feet of this pay interval was perforated, in order to maximize the standoff from the underlying water.

At the end of a 12 hour clean-up period, the T6 well was flowing at 28MMscf/d of dry gas, which exceeded management's expectations given the relatively short perforated interval.