(MENAFN- ProactiveInvestors)Iona Energy (CVE:INA) has told investors that it may increase its stake in the producing Huntington oil field in the UK North Sea. It highlighted that Noreco Oil UK a subsidiary of Norwegian Energy Company (Noreco) and a 20% stakeholder in Huntington has been served a default notice in relation to its share of the field's costs. And Noreco Oil UK has said that it does not intend to remedy the default Iona added. The remaining partners E.ON Premier Oil (LON:PMO) and Iona are obliged to cover Noreco's share of operating costs on a pro-rata basis until November 27 or until Noreco remedy the default. After that time the remaining partners can request that the Noreco interest in the field be forfeited to them. Iona in a stock market statement told investors that following its recent restructuring it will have sufficient liquidity to increase its interest in Huntington if necessary. Assuming that all three partners elect to take the additional interests in Huntington then Iona would own 18.75% of the field whereas E.ON (the operator) would have 31.25% and Premier would own 50%. Huntington has previously impacted be constraints in the North Sea though since normal operations resumed in April Iona says it has continued to perform above management expectations. It added that operating efficiency has been about 95% and the field has been yielding around 16600 barrels oil equivalent per day on average. Production is currently 12800 boepd and a new water-injector well in early 2016 will boost operations. Iona says the new project will have the potential to extend the field's life allow operating cost savings and improve field economics.
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