IOG.L Regulatory News (IOG)

8 May 2007 09:39

Island Oil and Gas PLC08 May 2007 ISLAND OIL & GAS PLC ISLAND CONCLUDES ACQUISITION OF MINORITY PARTY INTERESTS ON THE SCHULL FIELD, OFFSHORE IRELAND Island Oil & Gas plc ("Island" or the "Company") (LSE:IOG) announced on 24 Aprilits intention to acquire an additional 20% interest in the Island-operatedSchull gas field, ("Schull") in the Celtic Sea, offshore Ireland from theminority partners This acquisition has now been completed and Island now has ashareholding of 62.5% in Schull, prior to any decision by EnCore Oil plc ("EnCore") to exercise its option to acquire a further 7.5%, under farmout andoption agreements concluded between Island and EnCore in April 2007. Under the terms of the agreement, Island will acquire a 20% interest (6.667%from Bexley Investments Limited, 6.667% from Carob Limited and 6.666% fromCeltex Exploration Services Limited). Separately, Valhalla Oil and Gas Limited ("Valhalla") will acquire a 25%interest in the Schull gas field from minority partners (8.33% from BexleyInvestments Limited, 8.33% from Carob Limited and 8.34% from Celtex ExplorationServices Limited). Valhalla will immediately participate pro-rata in theIsland-operated appraisal well, 57/2-3, on the Schull gas field this summer. The agreements are subject to approval from the Irish Minister forCommunications, Marine and Natural Resources. Enquiries: Lisa J NewmanNewman Consulting Tel: +44(0)1252 878682 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. The current interests in the Schull gas field are: Island 62.5%; EnCore Oil plc12.5%*; Valhalla 25%. * EnCore is also granted an option to acquire an additional 7.5% interest,subject to certain conditions. Further information on Island can be found on the Company's website at http://www.islandoilandgas.com. 8 May, 2007 This information is provided by RNS The company news service from the London Stock Exchange