Iona Energy has entered into an agreement with Diamond Offshore Drilling (UK) Limited for the provision of its semi-submersible drilling rig, the Ocean Nomad, for the drilling of one well within the Staffa Oil Field in Block 3/8d of the UK North Sea.

Staffa is a Jurassic Brent Group field with proven oil in the Upper Ness and Tarbert reservoir formations. Structurally Staffa is a typical Brent oil province field, formed of a rotated Jurassic fault block, divided into 3 fault compartments running from north to south, all of which have been penetrated by at least 1 well. The re-development is aimed at the central Staffa 'Main' fault block. Details on the estimated reserves attributed to the Staffa Main Field compartment have previously been released.

Iona's Field Development Plan for the Staffa Field is currently being reviewed by the UK regulator (the Department of Energy and Climate Change) and the drilling plan for the field includes two production wells phased approximately 12 to 18 months apart. The Ocean Nomad will drill the first well up-dip from the 3/8b-14z well that produced in 1994 and completion is planned across the Tarbert and Upper Ness intervals. Iona expects the initial production rate to be above 10,000 boepd. In the first half of 2014, the second well will be drilled along strike and to the north of 3/8b-10, with future consideration being given to utilize this second well for water injection.

Dave Sherrard, Iona's Chief Development Officer commented "We are delighted to have contracted Diamond Offshore's Ocean Nomad for the near-term drilling of Iona's first well in the re-development of the Staffa Oil Field. This is a crucial step as our team continues to secure the remaining development facilities and services that will get Iona to first oil within a year."

Tags: Iona Energy Inc.