Iona Energy units’ joint administrators announce approval of proposals

By Caroline Salls

Pittsburgh, Feb. 24 – Iona Energy Co. (UK) plc and Iona UK Huntington Ltd.’s joint administrators proposals were approved Tuesday, according to a notice to creditors.

As previously reported, the administrators were appointed on Jan. 5 and announced a pre-packaged sale of one of the company’s assets on Jan. 15.

Specifically, the administrators said prospective purchasers were asked to bid for any or all of the shares in Iona Huntington, including tax pool losses; several licenses; West Wick discovery; and the shares in Iona UK, including tax pool losses.

A separate marketing exercise was undertaken for royalty rights and a differential lifting entitlement (DLE) related to but separate from the Huntington license interest some plants and equipment.

In addition, the administrators said Iona UK’s strategy was to divest the Trent & Tyne license and agree to a settlement of all outstanding claims and counterclaims with, Perenco UK Ltd. its operating partner on Trent & Tyne.

On completion of the Trent & Tyne transaction, which includes no cash consideration, the security granted by Iona UK in favor of Nordic Trustee and Britannic Trading Ltd. over its interests in Trent & Tyne will be released.

The administrators said they were also moving forward with two potential asset transactions, which may result in gross proceeds of up to $3 million, with $1.8 million of that consideration likely to be deferred and contingent. All or part of the proceeds may not be available for distribution to creditors if a sale of Orlando is not feasible.

In addition, the administrators said they were in exclusive discussions with a party related to a potential sale of Iona UK’s interest in the West Wick license, and Iona UK is in the process of withdrawing from or relinquishing the Ronan & Oran, Fleetwind and Farne & Lundy licenses.

Iona Energy is a Calgary, Alta., oil and gas company with assets in the United Kingdom’s North Sea.

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