IOG.L Regulatory News (IOG)

21 Nov 2007 07:00

Island Oil and Gas PLC21 November 2007 PRESS RELEASE 21 November 2007 ISLAND OIL & GAS PLC AWARDED EXPLORATION PERMITS IN MOROCCO Island Oil & Gas plc, (LSE:IOG) ("Island" or the "Company"), today announcesthat its wholly owned subsidiary Island International Exploration Morocco.("IIEM") has signed with the Office National des Hydrocarbures et des Mines("ONHYM") a Petroleum Agreement relating to seven Exploration Permits (the"Tarfaya Permit") in the Tarfaya Basin onshore Morocco. The Tarfaya Permit is valid for up to eight years. The work programme that hasbeen committed to during the initial two years and six months phase of thePermit comprises seismic reprocessing and acquisition and geochemical modelling.A drill or drop decision will be made at the end of the initial phase of thePermit The joint venture partners in the Tarfaya Permit are IIEM (40%), thedesignated operator, Longreach Oil and Gas Ventures Limited (30%) and San Leon(Morocco) Limited (30%). Morocco has an attractive fiscal regime relative to other North African oil andgas producing countries - State Participation upon production of up to 25%; 10%royalty on production (first 300,000 tons of production exempt) and 5% royaltyon gas production (first 300 million cubic meters exempt); and 35% corporationtax (only payable after a 10 year holiday on production). Enquiries: Lisa J N Pope MCIPR MIRSNewman ConsultingTel: +44(0)1252 878682 This information is provided by RNS The company news service from the London Stock Exchange