IOG.L Regulatory News (IOG)

16 Aug 2006 07:00

Island Oil and Gas PLC16 August 2006 16 August 2006 ISLAND OIL & GAS PLC ANNOUNCES BOARD CHANGE Island Oil & Gas plc ("Island" or the "Company") today announces that, followingthe successful completion of the Celtic Sea drilling programme, Jack McKinneyhas now taken the decision to step down as Acting Finance Director, a role thathe undertook on a temporary basis to ensure the prudent financial management andexecution of the current drilling programme. Jack guided Island through its listing on AIM in December 2004, was instrumentalin establishing a sound financial management team, and completed thearrangements required to facilitate Platinum Petroleum Ltd ("Platinum") becominga significant shareholder in Island. The Company is now well positioned to moveforward to its next stage of development. He has left the Company's Board with effect from 15 August 2006, and plans topursue other interests. Island will now undertake the expansion and restructuring of its Board toreflect the emergence of Platinum as a major shareholder, with 33.27 % of thecurrent issued share capital of the Company. This position arose following therecent conversion of two Convertible Loan Notes totalling £10 million sterlingwhich resulted in the issue of 10 million new Ordinary Shares to Platinum. Platinum holds a further 10 million Warrants, each of which are exercisable at£1.10 sterling before 9 June 2007. Should Platinum decide to exercise theseWarrants, and assuming no further issue of new shares, the Platinum holding inthe Company would increase to 41.11 % as approved by the Irish Takeover Panel,and subsequently endorsed by Island shareholders at the EGM held on 9 June 2006. The Company intends to make a further Announcement in due course giving fulldetails of the new Board structure. Commenting on Jack's departure, Bryan Benitz, Chairman of Island, stated: "The Company recognises and thanks Jack for his immense contribution to theCompany's successful progress since its flotation in December 2004, thatculminated in the execution of the two successful Celtic Sea wells this year.The Company's strong financial management team remains in place to carry thebusiness forward. We sincerely thank him for all his valuable counsel andsupport, and wish him well for the future." Enquiries: Lisa J Newman MCIPR MIRSNewman Consulting Tel: +44 (0)1252 878682 Further information on Island, and previous press releases, can be found on the Company's website at http://www.islandoilandgas.com This information is provided by RNS The company news service from the London Stock Exchange