IOG.L Regulatory News (IOG)

16 Jan 2008 13:11

Island Oil and Gas PLC16 January 2008 Island Oil & Gas plc"Island" or the "Company" AGM Statement At the Company's AGM held today in Kinsale, county Cork, Ireland, Brian Benitz,Non Executive Chairman made the following statement. The past year has been an extremely active and operationally successful year forthe company. Island has made significant progress towards one of it's majorgoals of monetising our near term development assets, realising value for ourshareholders. The Company has further enhanced its reputation as an operator with anothersuccessful drilling campaign in the Celtic Sea. We have delivered on our statedaim of farming out the Atlantic Margin acreage in order to accelerate drillingactivity and have brought in exceptionally high quality partners. Island has ventured into the international arena acquiring both proven oilreserves and high potential exploration acreage. Our new acquisitions are basedon both sound geological reasoning and commercial potential. We believe thatthey have been and will continue to be value enhancing for the company;spreading our risk and exposing the portfolio to attractive new regions wherethere is serious international interest from major players. We acknowledge that the share price performance has been disappointing despiteour successes, steady newsflow and an active investor relations programme. TheBoard believes that this has been primarily as a result of factors affecting theAIM market as a whole, particularly smaller companies who, without significantproduction, are not benefiting from the nearly $100 per barrel oil price we arecurrently seeing. The days of high valuations for pure exploration are over -hence our drive to monetise assets and acquire projects with shorter lead times. The company has demonstrated the quality of its acreage by attracting OMV andthe Bluewater Group into the Atlantic Margin and more recently Beach Petroleuminto our offshore Albanian Licence. We are continuing with our strategy offarming down our interests in projects and securing farm-in partners with thepotential to accelerate activity and add significant value. This years activity will focus on preparation of Field Development Plans for theAmstel Oil Field in Holland and the Schull and Old Head Gas Fields in the CelticSea with the aim of first production in the fourth quarter of 2009, subject tomarket conditions. Additionally the Company is planning a 3D seismic programmeover it's highly prospective Killala and Slyne prospects in the Atlantic Margin.This will commence late in the second quarter, subject to finalisation of thecontract and vessel availability. Island will also continue with its evaluationof the Connemara Oil Field and opportunities to acquire producing assets inMoldova and the former Soviet Union. We believe that 2008 could be a transformational year for Island. Production,backed by strategic acquisition and asset development will potentially continueto grow the value of the Company combined with predicted high oil and gas prices 16th January 2008 Further information: Island Oil & Gas plc Paul Griffiths Karl Prenderville Tel: +353 1 6313755 www.islandoilandgas.com Davy Stockbrokers (NOMAD and broker) Anthony Farrell Tel: +353 1 679 7788 Landsbanki (UK broker) Simon Robinson Tel: +44 207 426 9000 College Hill (Financial PR) Paddy Blewer Tel: +44 (0) 20 7457 2020 Nick Elwes This information is provided by RNS The company news service from the London Stock Exchange