23rd Oct 2007 07:01
Island Oil and Gas PLC23 October 2007 23 October 2007 ISLAND OIL & GAS PLC RMB RESOURCES - ADDITIONAL LOAN FACILITY Island Oil & Gas plc (LSE:IOG) ("Island" or the "Company"), is pleased toannounce that it has secured an additional loan facility for Stg£4.5million withthe London office of RMB Resources, the resources merchant banking business ofRand Merchant Bank, part of the FirstRand Group of South Africa. This is inaddition to the existing Stg£7.5 million short term loan facility arrangedthrough RMB Resources in December 2006. The entire facility is repayable at anytime up to 31 December 2007. The terms of the extended facility are the same asthose for the original facility. Following on from the successful 2007 drilling results, discussions arecontinuing with RMB Resources to secure the provision of medium-term financingto allow the Company to progress these opportunities within the optimum timescale. Island, having drilled and tested four successful gas wells on its core CelticSea assets during 2006 and 2007, will partly use the new facility to acceleratepre-development planning in 2007. This early work is designed to completeongoing engineering and commercial due diligence required in order to be in aposition to make a Declaration of Commerciality, subject to the consents andapprovals of the Department of Communications, Energy and Natural Resources, asearly as possible in 2008. Currently Island is targeting first gas production in2009. Paul Griffiths, Chief Executive of Island, commented: "Our 2006 and 2007 drilling programmes have delivered four successful gas wellswhich now form the basis for growing our Celtic Sea gas business. The additionalloan demonstrates the support Island receives from key industry relationshipsand consolidates Islands position, allowing it to maximise the potential of itsproject portfolio." Enquiries: Lisa J Newman MCIPR MIRSNewman Consulting Tel: +44 (0)1252 878682 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. This announcement has been reviewed and approved by Paul Griffiths, ChiefExecutive of Island. Paul Griffiths is a geology graduate of the Royal School ofMines, Imperial College London, and is a member of the Petroleum ExplorationSociety of Great Britain. He has 30 years experience in the oil and gasexploration sector and is a qualified person as defined in the guidance note forMining Oil & Gas Companies, March 2006 of the London Stock Exchange. RMB Resources is one of Africa's leading natural resource players, providinginnovative financial solutions to companies operating in the mining, oil, gasand energy sectors. With a presence in each of the major resource sector capitalraising centres, it has an international capability and the potential to providethe equity, quasi-equity and debt funding necessary for the future developmentof Island's oil and gas portfolio. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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