31st Mar 2008 07:01
Island Oil and Gas PLC31 March 2008 ISLAND OIL & GAS PLC ISLAND OIL & GAS PLC ANNOUNCES EXTENSION OF LOAN FACILITY Island Oil & Gas plc (LSE:IOG) ("Island" or the "Company"), is pleased toannounce that agreement has been reached with RMB Resources ("RMB") to extendthe existing GBP£12 million loan facility ("the Loan Facility"), which wasrepayable at any time up to 31 March 2008, for a period of 60 days. The principal purpose of the extension is to allow the Company sufficient timeto conclude negotiations that are likely, subject to contract, to lead to thefinancing of several of Island's development projects that are capable ofproducing early cash flow. RMB have also agreed to consider a further extensionof the facility repayment date. Commenting on the extension of the loan facility, Paul Griffiths, ChiefExecutive of Island, stated: "Island is working closely with RMB with the aim of crystallising the value ofthe Company's diverse portfolio of near development assets and accelerating thetiming of cash flow from the projects that are in the most advanced stage ofplanning and execution. This involves accessing development finance by means ofrationalizing our current high levels of equity in our near term developmentprojects through partial disposals. These arrangements will allow Island toconsolidate resources and focus on key areas of its business growth strategythat are designed to generate near term cash flow." 31 March 2008 Further information: Island Oil & Gas plcKarl Prenderville , Commercial Director 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 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 in both the Celtic Seaand Atlantic Margin. In addition, it is developing a wider portfolio, withpotentially valuable licences in the Netherlands, Albania and Morocco. Island isinvolved in an exploration and appraisal programme which in 2006 and 2007 sawsuccessful Celtic Sea gas wells at the Old Head of Kinsale, Schull and SevenHeads Sub-Area. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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