6th Mar 2008 10:00
Island Oil and Gas PLC06 March 2008 ISLAND OIL & GAS PLC ("Island" or the "Company") Farmout Agreement • Supernova Ireland Resources B.V. to increase stake in farm into Frontier Exploration Licence 1/04 by 10%, Atlantic Margin, offshore Ireland • Agreed cash payment to Island of £2.25m • Island remains designated operator of the License Island Oil & Gas plc (LSE:IOG), today announces that Supernova Ireland ResourcesB.V. ("Supernova"), a member of the Bluewater Group ("Bluewater") of theNetherlands, has executed a second option to farm in for an additional 10%equity in Frontier Exploration Licence 1/04 (the "Licence") in the PorcupineBasin in the prospective Atlantic Margin off the west coast of Ireland in returnfor a cash only consideration of Stg£2.25m. The Licence includes the Connemara oil field and several significant explorationprospects. Supernova has exercised its exclusive option to farm in for 10%equity in the Island operated Licence, thereby reducing the Company's net equityinterest from 51.5% to 41.5%. Paul Griffiths, Chief Executive of Island commented: "This deal is very much in line with our main strategy of effective riskmanagement by farming down our equity stakes in long term strategic projects,and bringing in major industry players to provide support for what is atechnically complex project. The Atlantic Margin projects provide an attractive exploration upside to ourwider international portfolio and we remain entirely committed to the project.The £2.5m payment will give us greater flexibility in assessing our wide rangeof oil and gas projects" 6 March 2008 Further 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 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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