Celtic Sea Well

6 Jun 2006 07:02

Island Oil and Gas PLC06 June 2006 6 June 2006 ISLANDS FIRST CELTIC SEA WELL REACHES TARGET DEPTH AND ENCOUNTERS GAS Island Oil & Gas plc ("Island" or the "Company") today announces that the firstwell of its 2006 and 2007 drilling programmes offshore Ireland, Well 48/23-3 atSeven Heads West in the Celtic Sea, has been drilled to target depth and hasencountered gas shows. The Company and its Partners, Marathon Seven HeadsLimited and Sunningdale Oils Ireland Limited, are now evaluating log informationand formalising the details of the planned testing programme that will besubmitted to the Petroleum Affairs Division of the Department of Communications,Marine and Natural Resources in accordance with the normal procedures forseeking the necessary approvals and consents to test the well. Well 48/23-3, which was spudded on 4 May 2006 in a water depth of 341 feet wasdrilled to its planned total depth of 3,237 feet TVD ss. The well hasencountered gas bearing sands, at the prognosed stratigraphic levels. TheCompany will be announcing further details at the conclusion of the plannedtesting programme. Well 48/23-3 is operated by Island and was drilled using the semi-submersibledrilling unit, Petrolia, owned and operated by Petrolia Drilling Limited undercontract to Island. Enquiries: Lisa J Newman MCIPR MIRSNewman ConsultingTel: +44 (0)1252 878682 Notes to Editors: Island was founded in 2003 and listed on AIM in December 2004. The Company hasinterests in nine Irish offshore licences, (four as operator and two astechnical manager), including one producing gas field. Island concluded a Sub-Area Equity Interest Assignment Agreement for the SevenHeads West area with Marathon International Petroleum Hibernia Limited, throughits wholly-owned subsidiary Marathon Seven Heads Limited in February 2006.Under the Agreement, Island is funding 100% of the cost of the current well,including testing, in return for increasing its equity interest in the SevenHeads West, Sub-Area, from 12.5% to 55.75%. Island has operated the well duringthe drilling period but operatorship will revert back to Marathon once drillingand testing has been completed. This information is provided by RNS The company news service from the London Stock Exchange