Iona Energy Inc., a Canadian independent oil & gas company with assets in the UK North Sea, has made a step forward towards its Orlando project funding. Orlando field is located in the UK North Sea.
Namely, the company received unanimous written support from an ad hoc committee of bondholders, representing 64% of the outstanding Bonds, for its recommended transaction proposal.
This follows Iona presenting to the ad hoc committee a range of alternatives to enable the funding of the Orlando project to achieve first oil and/or the refinancing of the Bonds. The recommended transaction proposal, if implemented, is intended to ensure that the company is fully funded for the Orlando project.
Iona noted that there is no guarantee that the transaction proposal will be implemented due to the requirement to finalize and execute definitive transaction documentation with a number of third parties. Signature of such documentation is targeted in July/August 2015. The transaction proposal also remains subject to the approval of a two thirds majority of Bondholders attending a Bondholder meeting which is also expected in July/August 2015.
Tom Reynolds, Chief Executive Officer, commented:
“Following an extensive Review we are pleased to have received support for the Transaction Proposal from a significant number of bondholders. We are focused on finalizing and implementing the Transaction Proposal to support the development of the Orlando project and to create a sustainable long-term future for the Company.”
The company also stated that the Orlando project continues to make progress. During a recent planned shutdown on the Ninian Central Platform substantially all planned works on Orlando reception facilities were completed as planned. This supports the company’s objective of delivering first oil on Orlando by end 2016. Iona is operator and holds a 75% working interest.
The Huntington field continues to perform above the budget expectations from March 2015.
According to Iona, May 2015 production averaged 18,247 boepd (gross), 2,737 boepd (net to the company’s 15% working interest).
To date, the CATS onshore summer slowdown (scheduled for June and July 2015) has had a limited impact on Huntington production.
Furthermore, June 2015 (to June 25) production has averaged 16,429 boepd (gross), 2,464 boepd (net to the company’s 15% working interest).
The company is still budgeting for some production constraints during July 2015 arising from the CATS slowdown.
The Huntington partners have now finalized commercial amendments to the Huntington gas transportation agreement which is expected to deliver an improvement in certainty of gas export volumes from Huntington for the remainder of the CATS summer maintenance slowdown period and on a longer term basis.