Thursday 2 July 2015

Iona Energy Inc, a Canadian independent oil & gas company with assets in the UK North Sea is pleased to announce that its UK subsidiary, Iona Energy Company (UK) plc, has entered into a definitive sale and purchase agreement with GDF SUEZ E&P UK Ltd (part of the ENGIE Group) in respect of the Company's 2.5% interest in the Esmond Transportation System ("ETS") which includes Iona's associated interest in the EAGLES pipeline (the "Transaction").

Iona shall receive a cash consideration of £1.3 million (approximately US$2.0 million). The completion and timing of the Transaction remains subject to obtaining all normal and necessary third party consents and regulatory approvals including discharges and release of securities. The Company expects the Transaction to complete in Q3 2015.