Administrators to negotiate Iona North Sea asset sales

Offshore staff

CALGARY, Canada – Chad Griffin and Lisa Rickelton of FTI Consulting LLP have been appointed joint administrators of Iona Energy Co. (UK) and Iona UK Huntington Ltd.

Both are oil and gas exploration and production companies with assets in the UK North Sea.

In November, parent Canadian company Iona Energy advised that a planned financial restructuring could not be completed following the decision by a proposed farm-out partner not to proceed. As there was little prospect of securing alternative funding in the current commodity price environment and within the required timeframes, insolvency procedures were the likely outcome.

The process of marketing Iona’s assets continues, with discussions in progress with interested parties in the planned tieback of the Orlando and Kells fields to the Canadian Natural Resources-operated Ninian complex in the UK northern North Sea.

The administrators also expect to execute a transaction to transfer Iona’s Trent and Tyne licenses in the southern North Sea soon, while in the central sector, talks are progressing on a potential transfer of the West Wick license.

A default notice has been served on one of the companies under the Huntington license in terms of the joint operating agreement, while arrangements are being taken to withdraw from, or relinquish, the companies’ other licenses.

01/07/2016

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