19th Mar 2008 07:01
Island Oil and Gas PLC19 March 2008 ISLAND OIL & GAS PLC ("Island" or the "Company") License Award • Island awarded new frontier license off shore Ireland, Atlantic Margin • Island to operate license • 50% / 50% ownership with Supernova Ireland Resources BV • High risk / reward: multi billion barrel prospect Island Oil & Gas plc, today announces that it has been granted a 50% interest inFrontier Exploration Licence 3/08 covering blocks 61/9, 61/10 and 62/6 in thesouth of the Porcupine Basin adjacent to the Goban Spur. The Licence, newlynamed as the 'Tir na nOg Licence', was awarded in the Porcupine LicensingRound. Island will be the operator and Supernova Ireland Resources BV will holdthe remaining 50% interest in the new Licence after a joint bidding process. The Tir na nOg Licence, which covers an area of approximately 800 squarekilometers, is located in deep water (averaging 1500 meters) on the AtlanticMargin approximately 250 kilometers off the southwest coast of Ireland. The Licence contains one very significant exploration prospect, covering an areaof up to 360 square kilometers, which Island believes has the potential to be amulti-billion barrel target Frontier Exploration Licence 3/08 is effective from 12 March 2008 and is validuntil 11 March 2021 unless surrendered or revoked. Unless a well is committed toon or before 12 December 2011, the Licence will expire on 11 March 2012. Thework programme committed to during the first phase of the licence includesregional desktop studies, basin modeling work and new seismic acquisition. Commenting on the award of the new Frontier Exploration Licence, Paul Griffiths,Chief Executive of Island, stated: "This area of the Porcupine and Goban Spur Basins is largely underexplored andhas been tested by one well to date, 62/7-1. This well was immediately adjacentto our new Licence and encountered good oil shows. We believe this Licence potentially contains a high risk/high rewardmulti-billion barrel oil prospect. Any success gained through the planned andfuture work being carried out on the Basin by other operators, willsignificantly de risk our prospect as well as potentially increase its value. This acquisition therefore not only adds value to our portfolio today, but willcontinue to increase in value over 2008 and 2009." 19 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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