Iona Energy Inc. says that the 44/18-T6 (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 (MMscf/d) 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 31st, 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 USD$10.89 per thousand cubic feet (Mcf).

Tags: Iona Energy Inc.