28th Aug 2007 07:03
Island Oil and Gas PLC28 August 2007 28 August 2007 ISLAND OIL & GAS CONCLUDES AGREEMENTS IN CONNECTION WITH OMV ASSET SWAP Island Oil & Gas plc ("Island") (LSE:IOG) today announces that, further to itsannouncement on 17 April 2007 regarding the Company's asset swap agreement ("theAgreement") with OMV, the leading oil and gas group in Central Europe, therelevant governmental and partner approvals have been received for the Agreementto be concluded. The assignment of the 50% interest in the Durresi Block, offshore Albania fromOMV to Island has been approved by the competent authorities in Albania and theassignment of the 50% interest in Frontier Exploration Licence 3/05 ("FEL 3/05")offshore the west of Ireland in the Rockall Basin, which includes the KillalaProspect, from Island to OMV has been approved by the Minister forCommunications, Marine and Natural Resources of Ireland, subject to receipt of aDeed of Assignment. The Agreement is between Island Rockall JV Limited, a wholly-owned subsidiary ofIsland, and OMV (Albanien) Adriatic Sea Exploration GMBH ("OMV"), a wholly-ownedsubsidiary of OMV Exploration & Production GmbH. Under the terms of theAgreement, Island will retain a 50% interest in FEL 3/05. In addition, Islandwill take over operatorship of the Durresi Block. Island plans to acquire a 3D seismic survey in 2008 in FEL 3/05 in order toprepare the large Killala prospect for a drilling decision. OMV has a strongtrack record on the Atlantic Margin, with significant exploration success inboth Irish and UK waters. Enquiries: Lisa J Newman MCIPR MIRSNewman Consulting Tel: +44 (0)1252 878682 Paul GriffithsChief ExecutiveIsland Oil & Gas plc Tel: +353 1 631 3755 Notes to Editors: Island was founded in 2003 and listed on AIM in December 2004 (LSE:IOG). TheCompany has interests in eleven Irish offshore licences, as well as licences inthe Netherlands, Morocco and Albania. FEL 3/05 covers an area of approximately 715 square kilometres and is located inthe Northeast Rockall Basin on the Atlantic Margin approximately 70 kilometresoff the west coast of Ireland and approximately 35 kilometres north of theCorrib gas field. The Licence area contains one very significant explorationprospect covering an area of up to 80 square kilometres (the "KillalaProspect"), together with a number of other prospects and leads. The Durresi Block in Albania covers an area of 4,200 sq. km. along the Adriaticcoastline of Western Albania. Discoveries made in similar play types in SouthernItaly (the Aquila Field and the Falco and Rovesti discovery wells) indicate thehigh potential of the southern Adriatic Sea for both oil and gas. Its locationputs it in an ideal position to meet the region's fast growing energy demand andto successfully develop even modest size discoveries. The Durresi Block contains the A4-1X gas/condensate discovery drilled by Agip in1993 at a time of lower oil price. The Chevron/Agip group quoted potential grossresources of 35 mm barrels of condensate and 151 bcf of gas. Several undrilledoil and gas prospects exist on the Durresi Block with potential mean grossrecoverable oil and gas of 35 million barrels and 410 to 540 bcf respectively(OMV's unrisked estimates). Further information on Island can be found on the Company's website at http://www.islandoilandgas.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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