IOG.L Regulatory News (IOG)

22 Feb 2006 07:03

Island Oil and Gas PLC22 February 2006 22 February 2006 ISLAND ANNOUNCES LICENCE EXTENSIONS FOR LICENSING OPTION 03/5 AND 03/6 IN THE CELTIC SEA Island Oil & Gas plc ("Island"), the technology-led independent exploration andproduction company, today announces that the Irish Authorities have grantedextensions to Licensing Option 03/5 (the Seven Heads Oil Option) and LicensingOption 03/6 (the Roscarberry Licensing Option) until 31 December 2006. Both theSeven Heads Oil Option and the Roscarberry Licensing Option are located in theCeltic Sea, offshore Ireland. Island has a 12.5% participating interest in the Seven Heads Oil Option. Islandand its partners have recently completed a detailed work programme ahead of adecision on future exploration which will be taken early this year. Through anOption Agreement executed with Ramco Oil and Gas Limited in April 2004, Islandcan acquire a further 44.4% equity interest in the Seven Heads Oil LicensingOption by committing to and funding 74% of an appraisal well to test theoil-bearing Lower Wealden reservoirs in the Seven Heads structure. The Roscarberry Licensing Option is located immediately to the north of SevenHeads. Island has a 22% participating interest in the Roscarberry LicensingOption which includes the Roscarberry Prospect (formerly known as the SneemProspect). Island, alongside its partners, has completed a work programmedesigned to mature for drilling this Prospect, a potentially significantGreensand gas structure, in advance of a decision on future exploration activityto be taken early this year. Any future gas production could potentially betied back to the Seven Heads infrastructure. Enquiries: Lisa J Newman MCIPR MIRSNewman ConsultingTel: +44 (0)1252 878682 Notes to Editors The partners in Seven Heads Oil Licensing Option 03/6 are: Lansdowne Oil & Gasplc (a new subsidiary of Ramco Energy plc) operator with 74% interest; Island12.5% with an option to earn a further 44.4% equity interest by drilling a well;Sunningdale Oils (Ireland) Limited 1% The partners in Roscarberry Licensing Option 03/5 are: Lansdowne Oil & Gas plcoperator with 77%; Island 22%; Sunningdale Oils (Ireland) Limited 1%. Further information on Island can be found at the Company's website, http://www.islandoilandgas.com This information is provided by RNS The company news service from the London Stock Exchange