IOG.L Regulatory News (IOG)

2 Jul 2007 07:01

Island Oil and Gas PLC02 July 2007 2 July 2007 ISLAND OIL & GAS PLC FLOWS GAS FROM THE OLD HEAD OF KINSALE APPRAISAL WELL Island Oil & Gas plc ("Island" or the "Company") (LSE:IOG) today announces thatthe 49/23-2z sidetrack well (the "Well") on Exploration Licence 4/05 (the "OldHead of Kinsale") in the Celtic Sea offshore Ireland has successfully tested drygas at a rate in excess of 18 million standard cubic feet per day ("mmscfpd")through a 56/64" restricted choke size, with absolute open flow potential of 47mmscfpd. The gas was produced from the same Upper Wealden reservoir horizons inthe Lower Cretaceous, at a measured depth of 4,450 feet below the rotary table("brt"), that were encountered approximately 2.5 kms to the NE of the original49/23-1 discovery well drilled in 2006. The well, which was drilled to 5,140 feet measured depth (drillers total depth4,386 feet as true vertical depth brt), is being suspended as a potential gasproducer alongside well 49/23-1. Following a detailed technical and commercialstudy of the well data, Island and its partners will make a further announcementin due course regarding the next stage in the evaluation and potentialdevelopment of the Old Head of Kinsale gas field. The Petrolia Rig will shortly move to the nearby Exploration Licence 5/05 (theSchull gas field) where it will drill the Island-operated gas appraisal well 57/2-3. Island has a 65% interest in the Old Head of Kinsale gas field, where it ispartnered by Valhalla Oil and Gas Limited and EnCore Oil plc. Enquiries: Lisa J Newman MCIPR MIRSNewman Consulting Tel: +44 (0)1252 878682 Paul GriffithsChief ExecutiveIsland Oil & Gas plc Tel: +353 1 631 3755 Notes to Editors: Island was founded in 2003 and listed on AIM in December 2004 (LSE:IOG). TheCompany has interests in eleven Irish offshore licences, as well as licences inthe Netherlands and Morocco. This drilling update has been reviewed and approved by Paul Griffiths, ChiefExecutive of Island. Paul Griffiths is a geology graduate of the Royal Schoolof Mines, Imperial College London, and is a member of the Petroleum ExplorationSociety of Great Britain. He has 30 years experience in the oil and gasexploration sector and is a qualified person as defined in the guidance note forMining Oil & Gas Companies, March 2006 of the London Stock Exchange. 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