-- Mr. Alan Curran joined the Company as Chief Operating Officer in March 2012.-- In March 2012, the UK Government doubled the Small Field Allowance ("SFA") tax shelter from GBP 75 million to GBP 150 million, which is expected to benefit Iona but has not yet been applied to any of Iona's qualifying properties. Iona's Orlando and Kells fields will each qualify for SFA, representing a total of GBP 300 million of supplementary charge tax shelter.-- 17,280,000 and 150,000 stock options were granted during the second and third quarters of 2012 respectively.-- During September 2012, the UK Government announced the Brown Field Allowance ("BFA"), which is a new tax relief to encourage investment in older oil and gas fields. The BFA will shield up to GBP 250m of income in qualifying brown field projects, or GBP 500m for projects in fields paying Petroleum Revenue Tax, from the 32% Supplementary Charge rate (providing tax relief of up to GBP 80m or GBP 160m respectively). The Company welcomes this announcement and hopes to utilize it on its qualifying projects in the future.-- On December 13, 2012 the Company announced that it had entered into a definitive agreement for the sale of a 25% non-operated working interest in each of its 100% owned Orlando and Kells fields. The sale to Volantis Exploration Limited completed on February 21, 2013 for total gross proceeds of USD$34 million on close and a pro-rata share of future staged payment obligations: USD$1.25 million upon Kells FDP approval; and staged payments commencing six months after first production from Orlando of USD$1.8 million, USD$1.8 million, USD$1.8 million, USD$0.925 million, and USD$0.925 million made every six months thereafter.
-- Company reserves assessed by Gaffney, Cline & Associates Ltd at the end of 2012: -- Net 1P Reserves increased 494% to 18.4 million barrels of oil equivalent ("mmboe") (2011: 3.1 mmboe) -- Net 2P Reserves(i) increased 497% to 35.8 mmboe (2011: 6.0 mmboe) -- Net 3P Reserves increased 465% to 46.9 mmboe (2011: 8.3 mmboe) -- Net 2P Reserves Pre-Tax Net Present Value (assuming a discount rate of 10%) increased 548% to USD$1,185 million (2011: USD$183 million)
(i)2P Reserves comprises 82% oil and 18% natural gas
Post Year End
-- On January 14, 2013, the Company announced that the 44/18-T6 ("T6") well on the Tyne Gas Field had been completed as a production well and had 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. 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%.-- In February 2013, the Company closed a bought-deal private placement of common shares (the "Offering"). An aggregate amount of CAD$23 million was raised pursuant to the Offering.-- The Company completed a USD$60 million structured energy derivative transaction with Britannic Trading Ltd., a subsidiary of BP International Limited in February 2013 for notional quantities of 1,360,072 and 6,746,231 barrels of Brent blend crude oil over the period April 1, 2013 to March 31, 2014 and April 1, 2014 to March 31, 2018 and strike prices of USD$100 and USD$95 respectively.-- The Company also entered into a Marketing and Off-take Agreement with BP Oil International Limited in February 2013.-- On February 22, 2013, the Company announced the closing of its previously announced Senior Secured Borrowing Base Facility for up to USD$250 million of which USD$150 million is currently available with the Bank of America Merrill Lynch, Lloyds TSB Bank plc and BNP Paribas and entered into hedging contracts with these banks for a total of 1,330,791 barrels of oil over the period April 1, 2013 to March 31, 2014 at a strike price of USD$100.-- The Huntington Field commenced production on April 12, 2013. The field has been developed through four production and two water-injection wells and is tied back to Teekay's Floating Production Storage and Offloading ("FPSO") vessel, the Voyager Spirit, with production capacity of 30,000 barrels of oil per day and 27 million standard cubit feet of gas per day.-- On March 5, 2013, 7,420,000 of stock options were granted at a price of $0.63 per share.-- At the beginning of April 2013, Brad Gunn, Chief Financial Officer ("CFO") resigned as CFO for personal reasons and Graham Heath, currently Iona's VP Corporate Development, has assumed the position of interim CFO until the Company finds a suitable replacement. Also, Don Copeland, currently a member of the Company's Board of Directors, has been appointed as the non-executive chairman of the Board of Directors.