Iona Energy Inc (INA-V)

Target: C$1.20 now 40 cents

Engineering Its Way to Value Creation with great management

We have seen several recent transactions that indicate increasing interest in the North Sea oil and gas opportunities. These include Sinopec’s (386-HK, not rated) US$1,500-million corporate joint venture agreement with Talisman Energy Inc. (TLM-T) for a 49% interest in Talisman Energy (U.K.) Ltd. and Cairn Energy’s (CNE-LN) US$500-million bid for Nautical Petroleum (NPE-LN, both not rated).

Iona, with its current 2P reserves base and two-year production target of 16,000 BOE/d, could become a takeover target. Possible acquirers include mid-cap E&P companies that are consolidating positions in North Sea, or perhaps an international company seeking a business platform in the North Sea.

Takeover is possible and target $1.20

Note we own so of course biase