CALGARY, Canada – Iona Energy has reached an agreement with CNR International about the timing of two tiebacks to the Ninian complex in the UK northern North Sea.

The company undertook an engineering and portfolio review of its and CNR’s development plans for the Orlando and Kells structures, leading to a preference for sequencing Orlando ahead of Kells.

Results of the review were driven by several factors:

•Orlando is expected to deliver higher net revenue due to greater initial Brent oil production (Orlando 14,000 b/d versus Kells 5,800 b/d)

•Preferential alignment with CNR’s work program at the tieback host, the Ninian Central Platform (NCP), during a planned maintenance shutdown in August and September

•First Orlando development well currently suspended awaiting re-entry and bottomhole completion

•In addition to the contracted Ocean Nomad semisubmersible drilling rig, Iona is negotiating with various contractors for a second rig slot

•Delay in the expected arrival of the Ocean Nomad to drill the development well at Kells.

The Orlando Environmental Statement and consultation with the UK’s Department of Energy and Climate Change (DECC) is now complete and approved. A re-engineered Orlando field development plan (FDP) is being finalized for submission, and approval should come through later this summer. Optimized engineering, Iona says, should lead to peak capacity for Orlando above 14,000 b/d. Iona has also secured two subsea christmas trees and additional subsea equipment and services for the Orlando development.

An FDP for the Kells oil and gas field has been submitted to DECC, reflecting a recent 2P reserve upgrade by Gaffney Cline & Associates from 6.6 to 8.9 MMboe. Engineering work continues on the NCP for the Kells production entry point and processing stream.

Iona has secured two subsea christmas trees for Kells. The FDP should be approved early next year.