IOG.L Regulatory News (IOG)

25 Sep 2006 07:01

Island Oil and Gas PLC25 September 2006 25 September 2006 ISLAND ASSIGNS DRILLING SLOT TO PROVIDENCE FOR 2007 DRILLING PROGRAMME OFFSHORE IRELAND Island Oil & Gas plc ("Island" or the "Company") today announces that it hasreached agreement with Providence Resources P.l.c. ("Providence"), the AIM andDublin IEX listed oil & gas exploration and production company, for theprovision to Providence of the semi-submersible drilling unit "Petrolia" in2007. In April 2006, Island announced that it had contracted a 150 day drillingprogramme. Under the terms of an agreement reached between Island andProvidence, Island will assign 1 firm drilling slot to Providence in 2007. Afurther slot may become available in 2007 depending on the duration of therespective drilling programmes being carried out by the two companies. Separately, Providence and Island have agreed that they will work together todevelop a common strategy report for the joint development of the companies'Celtic Sea oil assets based on a shared floating production facility. Thisreport will be undertaken at Providence's cost and will be based on theextensive work Providence has conducted on floating facilities in the CelticSea, suitably modified to take into account the differing reservoirs for jointdevelopment purposes and economic savings. The assets to be included in thisstudy incorporate each company's Celtic Sea oil assets. Commenting on today's announcement, Paul Griffiths, Chief Executive of Islandsaid: "The assignment of one rig slot allows Island to share the high costs ofmobilization / de-mobilisation. We are also delighted to have reached agreementwith Providence on a joint development study for the oil assets in the CelticSea. The combination of our respective experience and technical know how shouldallow us to further progress the portfolio of oil assets in the Celtic Sea." Tony O'Reilly jnr, Chief Executive of Providence said: "We are delighted to have reached agreement with Island to secure a rig slot in2007, utilising the Petrolia Rig. This now allows Providence to progress itsdrilling plans offshore Ireland for 2007, further details of which will beannounced in the coming months. Enquiries: Island Oil & Gas plc: Lisa J Newman MCIPR MIRSNewman Consulting Tel: + 44 (0)7747 462 574 Providence Resources P.l.c.: Tony O'Reilly jnr., Chief Executive Tel: + 353 (1) 667 5740Providence Resources P.l.c. Powerscourt MediaVictoria Brough Tel: +44 (0)207 236 5622 Murray ConsultantsPauline McAlester Tel: + 353 (1) 498 0300 Notes to Editors: About Island Island was founded in 2003 and listed on AIM in December 2004. The Company hasinterests in eleven Irish offshore licences, (six as operator and two astechnical manager). The Company is involved in an active exploration andappraisal programme with three wells drilled in 2006, two of which weresuccessful gas discoveries. The Company has also secured the Petrolia rig forits planned 2007 drilling programme. Further information on Island can be found on the Company's website athttp://www.islandoilandgas.com. About Providence Providence is an independent oil and gas exploration company listed on the AIMmarket in London and on Dublin's IEX market. The Company was founded in 1997,but with roots going back to 1981 when it predecessor company, AtlanticResources Plc was formed by a group of investors led by Sir Anthony O'Reilly. Providence's active oil and gas portfolio includes interests in Ireland(offshore), the UK (onshore and offshore) and West Africa (offshore Nigeria).Providence's portfolio is balanced between production, appraisal and explorationassets, as well as being diversified geographically. Recent corporateannouncements include; Gardline Geosurveys Ltd Survey (announced September 15th,2006); 20% Farm-out Deal agreed with CMI on Celtic Sea Licences (announcedSeptember 5th, 2006), Completion of Dunquin Seismic (announced on August 8th,2006), Annual General Meeting Statement (announced on June 20th, 2006), AnnualResults (announced on May 17th, 2006), Dunquin Farm-out to ExxonMobil (announcedon February 13th, 2006), a €50 million Revolving Credit Finance Facility withMacquarie Bank (announced on February 2nd, 2006) and increased production at itsSingleton oilfield (announced March 7th, 2006). Comprehensive information on Providence and its oil and gas portfolio, includingits 2005 AIM Admission document, 2005 Annual Report, Interim Report 2005 andrecent press releases are available from Providence's website atwww.providenceresources.com This information is provided by RNS The company news service from the London Stock Exchange