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Trent & Tyne Asset Acquisi/on

April 2014

Trent & Tyne Asset Acquisition April 2014

Trent & Tyne - field summary

Iona working interest 100% Operator Fields & Pipelines

2P reserves Net to Iona: 46.7 Bcf (7.8 MMboe)(1)

Production start / peak In production since 1996, 119 MMcf/day

Expected 2014 peak production 25 MMcf/day(3)

•  Two producing gas fields acquired by Iona between 2011 and 2014 –  Paid GBP 21.2m in for Tyne T6 development well to earn 20% WI in Trent &

Tyne (completed January 2013)

–  On April 28, 2014, signed an SPA with Perenco to acquire remaining 80% WI for USD 20m (expected to complete October 2014)

•  April 2014 acquisition from Perenco creates strategic hub with low entry costs and high returns: –  Acquisition cost: USD 20m

–  2P reserves addition: 37.4 Bcf (6.2 MMboe)(2)

–  Addition of 2P before-tax net present value discounted at 10%: USD 150.9 million(2)

–  2P production addition: Immediate addition of 10.1 MMcf/d (1,700 boe/d)(2) with expected Q1 2015 addition of 21.4 MMcf/d (3,560 boe/d)(2)

–  Acquisition cost per 2P reserve addition: USD 0.53/Mcf or USD 3.21/boe(2)

–  Acquisition cost per 2P production addition: USD 936/Mcfpd or USD 5,615/boepd(2)

•  Significant development potential identified

–  Substantial success since Iona entered in 2011 – T6 well sidetracked up-dip in December 2012

–  Three near-term drilling opportunities planned – Tyne NW, T1z sidetrack, Trent East Discovery with additional opportunities under evaluation

Trent & Tyne - License P609 & P685 SNS, Block 44/18


•  Trent & Tyne are two normally unmanned installations

–  Lightweight jackets with low decommissioning exposure

•  Tyne has 5 production wells

–  2 offline, 4 spare slots

•  Trent has 3 production wells

–  1 offline, 1 suspended, 5 spare slots

•  Operatorship of Tyne to Trent & ETS Pipelines to Bacton

•  Platforms, Well Slots, and Pipelines Hub Offers

–  Near-term wins in 2014 and early 2015

•  Improve well efficiency and uptime (salt management)

•  Improve platform uptime (operational focus)

–  Platform infill drilling early 2015 (targets confirmed)

•  Site preparation and rig slot procurement

–  Subsea tieback 2015 (FDP 2014)

–  Near reach exploration in known productive trends 2015/16

–  Exploration build out 2016 and 2017

A strategic hub in the Southern Gas Basin


Trent & Tyne – Infill and extension opportunities

Near-term development opportunities

•  Tyne T1z Sidetrack: 25 Bcf 2P reserves(3), 75% CoS**

•  Tyne North West: 20 Bcf prospective resources(3), 58% CoS**

•  Caister / Murdoch discovery (produced at 15 MMcf/d)

Other potential prospective resource targets

•  Tyne North West Extension: 26 Bcf(3), 68% CoS**

•  Tyne West Extension: 50 Bcf(3), 64% CoS**

Near-term development opportunities

•  Trent East Discovery: 36.6 Bcf(3) (2C) contingent resources, 66% CoS**

Other potential prospective resource targets

•  P1 Polygon: 20 Bcf(3), 66% CoS**

** Chance of Success (“CoS”) includes all technical, geologic, and production risks


Exploration upside acquired from Ithaca

•  Iona acquired a 33.33% non-operated interest in Blocks 42/20a, 42/25b, 43/16, and 43/21c of License P.2107 for £79k.

•  These four blocks lie c.22Km northwest of the 100% Iona owned and operated Trent field, and immediately north of the Garrow and Kilmar gas fields which produce via, and are operated from, Trent. As such they lie within an Iona Core area.

•  Within the blocks are an unappraised gas discovery (well 43/16-2), the undrilled ‘Farne’ prospect and the ‘Lundy’ lead.

•  The work programme agreed with DECC is to purchase 2D and 3D seismic data to evaluate these opportunities and to commit to a well or relinquish the licence after four years.

•  The partners in the blocks are Parkmead (E&P) Limited (33.33% operator) and Bridge Energy (SNS) Limited (33.33%).

Trent Field


Significant production from near-term developments(3)

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2014" 2015" 2016" 2017" 2018" 2019"

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Tyne%North%West%58%%CoS%Prospec5ve%

Trent%East%Discovery%66%%CoS%2C%

Tyne%T1z%Sidetrack%75%%CoS%2P%

Trent%&%Tyne%(80%%Acquisi5on)%100%%2P%

Trent%&%Tyne%(20%%WI)%100%%2P%


Some of the statements in this presentation are forward-looking, including statements regarding Iona's business plans for the Trent & Tyne properties (including timing), estimates of proved plus probable reserves, contingent resources and prospective resources associated with certain properties, 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 presentation, 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 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 of unanticipated delays or unanticipated costs impacting drilling and development plans, the risk that drilling is not successful or that future production rates are less than expected or the risk that the increase in working interest at Trent & Tyne is delayed or is not completed for any reason. These forward-looking statements speak only as of the date of this presentation. 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.

Disclaimers


(1)  Calculated based on a 100% working interest in the Trent & Tyne fields using the proved plus probable reserves (2P) associated with the Trent & Tyne fields as estimated by Iona's non-independent qualified reserves evaluator effective as of April 25, 2014. See "Notes Regarding Oil and Gas Disclosure" below for additional information.

(2)  Calculated based on the acquisition of Perenco's remaining 80% working interest in the Trent & Tyne fields using the proved plus probable reserves (2P) associated with the Trent & Tyne fields as estimated by Iona's non-independent qualified reserves evaluator effective as of April 25, 2014 using forecast prices and costs. See "Notes Regarding Oil and Gas Disclosure" below for additional information.

(3)  As estimated by Iona's non-independent qualified reserves evaluator effective as of April 25, 2014. See "Notes Regarding Oil and Gas Disclosure" below for additional information.

Footnotes


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.

The reserves estimates contained in this press release are estimates only and the actual results may be greater than or less than the estimates provided herein. The estimates of reserves and resources for individual properties may not reflect the same confidence level as estimates of reserves or resources for all properties, due to the effects of aggregation. Peak production numbers may not be indicative of long-term performance or of ultimate recovery.

"Contingent resources" is defined in the Canadian Oil and Gas Evaluation Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be subclassified based on project maturity and/or characterized by their economic status. 1C, 2C and 3C refer to the low estimate, best estimate, and high estimate, respectively, of contingent resources. The Trent East and Tyne East discoveries are still at an early stage of evaluation and until Iona finalizes a development plan for each field, these contingent resources will not be classified as reserves.

The Contingent resources estimates are estimates only and the actual results may be greater than or less than the estimates provided herein. There is no certainty that it will be commercially viable or technically feasible to produce any portion of the resources.

"Prospective resources" is defined in the Canadian Oil and Gas Evaluation Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub classified based on project maturity. There is no certainty that any portion of the Prospective resources attributed to Tyne North West, Tyne North West Extension, Tyne West Extension, or P1 Polygon will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective resources nor can there be any certainty regarding the timing of any such development.

Notes regarding oil and gas disclosure


Notes regarding oil and gas disclosure cont’d

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