Corporate P Presentation November 2 2013 Discla Di laime mer - PowerPoint PPT Presentation

Corporate P Presentation November 2 2013

Discla Di laime mer Forw rward rd-lo -lookin king st stateme ments Some of the statements and information contained in this Presentation are forward-looking, including statements regarding the Company's plans with respect to development of its properties, expected drilling results from the Company's properties, statements regarding sources of financing for the Company and its development plans, estimates of the quantities of proved reserves, probable reserves, possible reserves and contingent resources, as well as estimates of the net present value of future net revenue of proved reserves, probable reserves, and possible reserves. Forward-looking statements include statements regarding the intent, belief and current expectations of Iona or its officers with respect to various matters, including reserves, production, first oil, drilling activity or otherwise. When used in this Presentation, the words "expects," "believes," "anticipate," "plans," "may," "will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, are based on various assumptions deemed to be reasonable by the Company's management. Some of the key assumptions include: the anticipated increase in working interest at the Company’s Trent & Tyne property from 20.0% to 37.5%, management's anticipated development timelines (which may be different from those contained in the Company's independent reserves reports), production profiles for the Company's properties, and estimated cash flow from the Company's properties. Information concerning reserves and resources are deemed to be forward-looking statements, as such estimates involve the implied assessments that the reserves or resources can be profitably produced in the future. The production profiles and cash flow estimates from the Company's existing properties are based upon the Company's independent reserves reports. Such profiles and estimates involve numerous assumptions and are subject to a number of risks and uncertainties, some of which are beyond the Company's control, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate and which could cause actual results to differ from those anticipated. The forward-looking statements in this Presentation are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements, including without limitation: the risk that the Company's development plans and timelines change as a result of new information or events, the risk that drilling results differ materially from management's current estimates, reliance on key personnel, general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, the risk that future terms of anticipated financings are different from those disclosed herein, competition from other industry participants, the risk that transactions identified herein do not close in a timely matter or at all, the lack of availability of qualified personnel or management, and the ability to access additional sufficient capital from internal and external sources for the Company to complete the development programs described in this document. The information contained in this Presentation may identify additional factors that could affect the operating results and performance of the Company. This Presentation also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about prospective results of operations, future net revenue, cash flows, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this Presentation was made as of the date of this document and was provided for the purpose of providing information about management's current expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward looking statements or FOFI contained in this Presentation, whether as a result of new information, future events or otherwise, unless required pursuant to applicable securities law. Readers are cautioned that the forward looking statements and FOFI contained in this Presentation should not be used for purposes other than for which it is disclosed herein. The forward looking statements and FOFI contained in this Presentation are expressly qualified by this cautionary statement. Included in this Presentation are estimates of the Company's 2013-2018 cash flow which are based on various assumptions as to production levels, commodity prices and other assumptions and in the case of the years other than 2013 are provided for illustration only and are based on budgets and forecasts that have not been finalized and are subject to a variety of contingencies including prior years' results. To the extent such estimates constitute FOFI, they were approved by management of the Company in November 2013 and are included to provide readers with an understanding of the Company's anticipated cash flow based on the capital expenditures and other assumptions described and readers are cautioned that the information may not be appropriate for other purposes. Novemb mber 2 2013 Corporate P Present ntation n Page 2 2

Agend nda • Ove vervie rview of Iona En Energ rgy y • Asse Asset ove vervie rview • Fin inancia cials ls • Ap Appendix ix Novemb mber 2 2013 Corporate P Present ntation n Page 3 3

Introduction t Int n to Io Iona na E Ene nergy Inc y Inc. . • Canadian corporation listed on TSX Venture Exchange (TSX- V:INA) with operational headquarters in Aberdeen • 367m basic shares outstanding • Pure play UK development and production focused company • Huntington production has shown peak rates in excess of ~34,500 boe/day • Trent & Tyne WI to increase upon commitment to future drilling campaign increases production and reserves (1) • Orlando development sanctioned, first oil expected Q4‘15 • Kells first oil expected 12 months after Orlando first oil • 36.0 MMboe 2P reserves (GCA CUR) and 56.9 MMboe net 2C Contingent Resources (R)(2) • Expected exit Q4 2013 production of ~7,500 boe/day, ramping up to ~17,000 boe/day exiting 2016 post- development of Orlando and Kells (2) • Experienced management team with strong track record of value creation and in-depth asset knowledge • Strong institutional shareholder base, more than CAD 185m (1) ¡Assumes ¡increase ¡of ¡Trent ¡& ¡Tyne ¡WI ¡from ¡20% ¡to ¡37.5% ¡ equity raised since 2010 (2) ¡Based ¡on ¡Trent ¡& ¡Tyne ¡WI ¡of ¡37.5% ¡and ¡HunAngton ¡producAon ¡including ¡0.75% ¡ DifferenAal ¡LiHing ¡EnAtlement ¡and ¡1.8% ¡royalty ¡ • ~$303m in tax pools and no expectation of significant taxes payable until 2017 Novemb mber 2 2013 Corporate P Present ntation n Page 4 4

Production o n outlo look • Huntington reached full capacity during early AVERAGE ANNUALIZED KBOE/DAY September ‘13 25 25 HUNTINGTON HUNTINGTON 2P Production • Long-term gas production TREN ENT & & TYN YNE E from Trent & Tyne ORLAN ANDO 20 20 KEL KELLS S 2P Developments • Further Tyne development WEST EST WICK K HUNTINGTON DEEP EEP in ‘14 2C Contingent Resources 15 15 RONAN AN & & ORAN AN • Orlando first oil scheduled Q4 ‘15 10 10 • Kells first oil Q4 ’16 • Long-term production 5 5 potential from West Wick from 2016 0 0 • Potential tie-in of 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 Huntington Deep in 2016 and beyond • Ronan & Oran are additional development Notes: ¡ candidates ProducAon ¡profile ¡based ¡on ¡Gaffney ¡Cline ¡& ¡Associates ¡(”GCA”) ¡2P ¡reserves ¡as ¡of ¡December ¡31st, ¡2012(GCA ¡CUR) ¡ ¡ • Based ¡on ¡Trent ¡& ¡Tyne ¡WI ¡of ¡37.5% ¡and ¡HunAngton ¡producAon ¡including ¡0.75% ¡DifferenAal ¡LiHing ¡EnAtlement ¡and ¡1.8% ¡royalty ¡ • 2013 ¡and ¡beyond ¡provided ¡for ¡illustraAon ¡only. ¡Budgets ¡and ¡forecasts ¡beyond ¡2013 ¡have ¡not ¡been ¡finalized ¡and ¡are ¡subject ¡to ¡a ¡variety ¡of ¡factors ¡including ¡prior ¡year's ¡results. ¡ • Ronan ¡& ¡Oran ¡producAon ¡levels ¡portray ¡a ¡75% ¡retained ¡working ¡interest ¡in ¡the ¡asset ¡and ¡is ¡based ¡on ¡esAmates ¡of ¡Iona’s ¡non-­‑independent ¡qualified ¡reserves ¡evaluator ¡ • Novemb mber 2 2013 Corporate P Present ntation n Page 5 5