9th Apr 2008 07:00
Island Oil and Gas PLC09 April 2008 Island Oil & Gas plc ISLAND AWARDED Q13b EXPLORATION LICENCE, OFFSHORE NETHERLANDS • New license awarded offshore Netherlands adjacent to IOG operated Amstel field development • Very low development costs due to Amstel tie back • 12.4 million barrels estimated oil in place on licence • 2,641 bopd flowed on licence from one well • Drilling programme designed to capture development and exploration upside Island Oil & Gas plc (LSE:IOG) ("Island" or the "Company") today announces thatthe Minister of Economic Affairs of the Netherlands has awarded the Q13bExploration Licence (the "Licence") to Island Netherlands B.V. ("INBV"), awholly owned subsidiary of Island, and Aceiro Energy B.V. Island, the designatedoperator, will hold a 100% working interest in the Licence. The Licence iseffective from 19 March 2008 and is valid for five years Island intends to file a request with the Minister of Economic Affairs in theNetherlands for splitting the Licence into a shallow (oil) and deep (gas) partdefined by the top of the Trias stratigraphic marker. Island will operate theshallow part with a 100% equity interest and Cirrus Energy Nederland B.V. willoperate, on behalf of its partner Petro-Canada Netherlands B.V., the deep partin which Island will have no equity interest. The Q13b Exploration Licence covers an area of 369 sq. km. and contains thenorthern part of the Zaan Field, a Lower Cretaceous field with up to 12.4million barrels of gross oil in place based on material balance calculationsgenerated by the Operator NAM following testing of the Q13-4 discovery well.Q13-4 flowed at an initial rate of 2,641 bopd from three separate oil-bearingintervals. The Q13-5 well on the Licence also encountered oil shows in the LowerCretaceous. An area covering 3.7 sq. km., approximately the area of the ZaanField, lies untested updip from the Q13-5 well and will be the subject offurther evaluation by Island. The Q13b Exploration Licence further contains the NW-extension of theWassenaar-Zee field, where in 1980 the Wassenaar-Zee 01 well tested some 400bopd, and several untested structures. The Licence work programme includes the drilling, subject to technical andcommercial justification, and testing of an appraisal well in the Zaan Field inthe second year of the Licence and a further test well in the third year of theLicence The Zaan Field and the Q13-5 Appraisal Prospect are located within the WestNetherlands Basin, a prolific oil and gas province in which, to date, over 1.3billion barrels of oil-, and 3 tcf of gas-, in place have been encountered. Bothstructures, if successfully appraised, are anticipated to be developed assatellite tie-backs to Island's Amstel field development project. Commenting on the Licence Award, Paul Griffiths, Chief Executive of Islandstated: "Island is delighted with the award of this licence as it adds potentialadditional recoverable oil resources to the Amstel development hub via theprojected tie-back of the Zaan Field. Our low entry cost, which reflects our approved operator status, and ourestablished position in the Amstel development project, creates a significantdevelopment upside from any additional reserves increases, at a time of buoyantoil prices." 09 April 2008Further information: Island Oil & Gas plcPaul GriffithsKarl Prenderville Tel: +353 1 6313755www.islandoilandgas.com Davy (NOMAD and broker)Anthony Farrell Tel: +353 1 679 6363 Landsbanki (UK broker)Simon Robinson Tel: +44 (0)207 426 9000 College Hill (Financial PR)Paddy Blewer Tel: +44 (0)20 7457 2020Nick Elwes This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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