IOG.L Regulatory News (IOG)

31 May 2007 07:02

Island Oil and Gas PLC31 May 2007 31 May 2007 OLD HEAD OF KINSALE WELL REACHES TARGET DEPTH AND ENCOUNTERS THE ANTICIPATED GAS-BEARING SANDS Island Oil & Gas plc ("Island" or the "Company") today announces that, followingthe completion of wireline logging operations, Island-operated gas appraisalwell 49/23-2 ("Well 49/23-2") on Exploration Licence 4/05 (the "Old Head ofKinsale") in the Celtic Sea, offshore Ireland, has successfully encounteredgas-bearing reservoir sands. Preliminary interpretation of the well resultsindicate the following: •Reservoir continuity with the gas sands encountered in Well 49/23-1,3 kilometers to the NE; •Reservoir permeability in line with Well 49/23-1; •A gas-water contact within 5 feet of that extrapolated for Well 49/23-1, thereby validating the presence of a 100 foot gross gas column for the Old Head of Kinsale gas field. Well 49/23-2, which was spudded on 16 May 2007, was drilled to its planned totaldepth in just 11 days, well ahead of schedule and under budget. Island will now drill a sidetrack hole (49/23-2z) from the existing well bore. The objective is to maximise potential gas deliverability to ensure that any future gas production from the field can be achieved at the highest possible rates. Testing operations are anticipated to commence on completion of the sidetrack well. Island has a 65% interest in the Old Head of Kinsale, where it is partnered byValhalla 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. Island is involved in an exploration andappraisal programme which in 2006 saw successful Celtic Sea gas wells at the OldHead of Kinsale and the Seven Heads Sub-Area. The Company has again secured thePetrolia rig for its 2007 Celtic Sea drilling programme. This commenced in thesecond quarter of 2007 with an appraisal well at the Old Head of Kinsale gasfield, which is to be followed by an appraisal well at the Schull gas field. 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