Energy SpA — Capital/Financing Update 2016

Sep 20, 2016

Iona Energy Company - Update to Bondholders

Iona Energy Company - Update to Bondholders

Update to Bondholders

We refer to our previous update to bondholders of 19

August 2016.

We advised in that update that an extension to the

backstop date in the sale and purchase agreement (SPA)

with Bridge Petroleum 2 Limited ("Bridge") had been

agreed to 31 August 2016.

We had indicated that we expected that further

extensions would be required, subject to satisfactory

progress being made in relation to Bridge securing the

Orlando development funding, in order that the agreed

completion funding can be released.

This fund raise process continues to progress and

based on progress to date and agreements in relation

to Bridge meeting operating costs in the interim

period, we have further extended the backstop date of

the SPA to 31 October 2016.

The extension documentation also includes provisions

for exclusivity effective on payment of operating

costs by Bridge.