Energy SpA — Capital/Financing Update 2015

Oct 5, 2015

Bondholder Meeting Summons - Amendment to terms of Restructuring

Bondholder Meeting Summons - Amendment to terms of Restructuring

Iona Energy Inc. ("Iona" or the "Company") (TSX

VENTURE:INA), a Canadian independent oil & gas company with

assets in the UK North Sea announces that it has today

published a summons to a bondholders' meeting (the

"Summons") to be held on 13 October, 2015 to approve certain

amendments (the "Amendments") to the terms of the

restructuring of Iona (the "Restructuring") which was

approved and agreed by the bondholders of Iona Energy

Company (UK) plc (the "Bondholders") at a meeting on 6

August 2015.

Since the 6 August Iona has progressed the implementation of

the Restructuring however, it has become clear that further

time is required to finalise certain of the documentation.

Accordingly, to facilitate completion of the conditions

precedent to the Restructuring, the long stop date for

completion of the Restructuring was extended from 30

September 2015 to 30 November 2015 following an affirmative

vote by Bondholders at Bondholder meeting held on 30

September 2015.

Since 6 August, macro economic factors and certain items

specific to the Company have impacted Iona's view of future

potential liquidity requirements. These include:

(a) current volatility in the oil price;

(b) current volatility in the GBP:USD FX rate; and

(c) a provision for later Huntington capex and

consequent re-phasing of revenue arising from that

Huntington capex.

To provide Iona with additional liquidity, and following

extensive discussion with the Ad Hoc Committee of

Bondholders, the Company is proposing to defer the USD 24

million Restricted Cash Repayment originally proposed to be

paid to the Bondholders on the Restructuring Implementation

Date and instead utilise this cash to provide additional

financial headroom.

The Company has received strong support for the Amendments

from the Ad-Hoc Committee of Bondholders. Approval is

subject to a two thirds majority of bondholders voting in

favour.

Further details of the proposed Amendments are outlined in

the Summons published today. The Summons can be found at

the Company's website at www.ionaenergy.com.

The Restructuring and all its constituent transactions or

arrangements are in agreed form but remain subject to

negotiation and execution of final documentation.

The Company specifically draws the attention of shareholders

and Bondholders to the Forward Looking Statements and Notes

section of this release and to the Summons. In particular,

the Company also draws attention to the consequences of not

receiving a positive bondholder vote at the forthcoming

meeting and/or not implementing the various potential

arrangements.

ENDS

Additional information relating to the Company is available

on SEDAR at www.sedar.com.

For further information please contact:

Tom Reynolds, CEO

Telephone: +44 (0) 1224 228400

Billy Clegg / Georgia Mann, Camarco

Telephone: +44 (0) 20 3757 4980

Camarco is a financial public relations group assisting the

Company with this press release.

Notes

About Iona Energy:

Iona is an oil and gas company with assets in the United

Kingdom's North Sea. www.ionaenergy.com.

Forward-Looking Statements

Some of the statements in this announcement are forward-

looking, including statements regarding the material terms,

anticipated effects and anticipated timing of the

Restructuring, (including the proposed Amendments), and

future business plans of Iona. When used in this

announcement, the words "expects," "believes," "anticipate",

"plans", "may", "will", "would", "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 regarding future contractual terms and

anticipated timing which may be beyond Iona's control, 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 business plans described in this announcement are

changed as a result of new developments or information, the

risk that the Restructuring is not implemented for any

reason, including the risk that the Amendments are not

approved by the Bondholders, the risk that the final terms

of the definitive agreements implementing the Restructuring

(or portions thereof) are different than those anticipated,

and the risk that the Restructuring is delayed or does not

have the anticipated positive impact upon the Company. 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.

There remains significant uncertainty with regard the

implementation of the Restructuring. Implementation of the

Amendments is subject to approval by a two thirds majority

of Bondholders at a Bondholder meeting and there is no

guarantee that bondholders will vote in favour. In the

event that the Amendments are not approved by Bondholders

then the Company will likely default under the terms of the

Bonds. In an event of default, Bondholders could require

immediate repayment of the Bonds.

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.