Iona Energy Company (UK) Ltd., a U.K.-based subsidiary of Iona Energy Inc., Calgary, (Toronto Venture: INA) plans to purchase the interests in Orlando oil field in the U.K. North Sea from its partners MPX Resources and Sorgenia for US$77.25 million in cash and assumed costs.

MPX Resources holds 30% interest in Orlando Field and Sorgenia holds 35%. Pro forma, Iona will hold 100% interest in the field.

Iona will refund Sorgenia and MPX their historical costs of the Orlando development to-date, approximating USD$48.25 million. The company will then make future staged payments totaling US$29 million during the next three years.

Orlando Field lies in the U.K. sector of the North Sea within Block 3/3b, approximately 10 kilometers north east of the Ninian Central Platform and was successfully appraised with the 3/3b-11 (1989) and 3/3b-13 (2012) and sidetrack wells.

The 35% stake feature proved and probable reserves of 7.2 million barrels of oil.

Based on its reserve report effective Dec. 31, 2011, at 100% working interest Iona calculates Proved reserves for the field of 6.8 million barrels, proved and probable reserves of 11.1 million barrels and proved, probable and possible reserves of 16.2 million barrels.

Iona will assume all Orlando development contracts with respect to equipment and services and plans to grow proved and probable reserves to 22.1 million barrels equivalent.

Iona chief executive Neill Carson says, “The acquisition of our partners' interests in Orlando makes sense as Iona will now operate both key developments, Orlando and Kells, to realize operational and portfolio synergies that are uniquely offered to Iona due to our dominant ownership in these satellite developments. A first oil date in 2013 is important to us and Iona is well placed to achieve this through having an advanced FDP, Environmental Statement, pipeline surveys, ownership of critical equipment such as subsea trees, and pipeline procurement contracts."

Offshore