Licence Awards Ireland

21 Aug 2006 15:31

Island Oil and Gas PLC21 August 2006 21 August 2006 ISLAND OIL AND GAS AWARDED FRONTIER EXPLORATION LICENCES IN THE SLYNE TROUGH AND DONEGAL BASIN, OFFSHORE IRELAND Island Oil & Gas plc ("Island" or the "Company") today announces that, followingan application to the Petroleum Affairs Division of the Department ofCommunications, Marine and Natural Resources in the recent Slyne-Erris-DonegalBid Round which closed on the 15 March 2006, the Company has been granted twonew licences. The Frontier Exploration Licences ("FEL") granted are: •An FEL covering blocks 27/18 & 27/23 and part-blocks 27/17(E) & 27/22(E) in the Southern Slyne Trough approximately 110 km. south of the Corrib gasfield. Island, the designated operator, and Lundin Petroleum AB will each hold a50% interest in the newly named Inishmore Licence. A 3D seismic survey will beacquired during the initial three year phase of the Licence. •An FEL covering part-blocks 13/4(S), 13/5(S), 13/9(E), 13/13(N), 13/14(N) & 14/1(N) in the Donegal Basin approximately 60 km. east of the Dooishhydrocarbon discovery in the Rockall Basin. Island, the designated operator, andLundin Petroleum AB will each hold a 40% interest and Endeavour Energy UKLimited a 20% interest in the newly named Inishowen Licence. A new 2D seismicsurvey will be acquired during the initial three year phase of the Licence. Commenting on the Awards Paul Griffiths, Chief Executive of Island, stated: "The award of these new licences significantly expands our portfolio ofexploration and near-development assets along the Atlantic Margin where we nowoperate four licences covering an area of approximately 3,000 sq. km. This isstrategically a key area for the future discovery of the large quantities ofindigenous gas necessary to reduce Ireland's long term dependence on gasimported from the United Kingdom. Island has demonstrated through the successfulexecution of its 2006 drilling programme, which has already delivered two gaswells, its ability to potentially play a lead role in the exploration for gasalong the Atlantic Margin where we are in the process of developing a number ofTriassic gas prospects." Enquiries: Lisa J Newman MCIPR MIRSNewman Consulting Tel: +44 (0)1252 878682 Further information on Island 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