IOG.L Regulatory News (IOG)

27 Jul 2007 07:00

Island Oil and Gas PLC27 July 2007 27 July 2007 SCHULL WELL REACHES TARGET DEPTH AND ENCOUNTERS GAS-BEARING SANDS Island Oil & Gas plc ("Island" or the "Company") today announces that, followingthe completion of wireline logging operations, Island-operated gas appraisalwell 57/2-3 ("Well 57/2-3") on Exploration Licence 5/05 (the Schull Field) inthe Celtic Sea, offshore Ireland, has successfully encountered gas-bearingreservoir sands. The reservoir horizons in the Upper Wealden were encountered ata measured depth of 2,332 feet MD below the rotary table ("BRT"). Preliminaryinterpretation of the well results indicates the following: •A gross gas bearing reservoir interval of approx 294 feet •A net gas bearing interval of approximately 73 feet Well 57/2-3, which was spudded on 14 July 2007, was drilled to its planned totaldepth of 2989 feet TVD BRT in just 10 days, ahead of schedule and under budget.Preparations to conduct testing operations are now underway and a furtherannouncement will be made in due course. Island has a 62.5% interest in the Schull Field, where it is partnered byValhalla Oil and Gas Limited with a 25% interest and EnCore Oil plc with a 12.5%interest. The Schull Field is located immediately to the southwest of the Seven Heads gasfield and the associated infrastructure linking Seven Heads to the Kinsale Alphaplatform. Following completion of testing, Providence Resources plc will take possessionof the Petrolia Rig. Enquiries: Lisa J Newman MCIPR MIRS Newman Consulting Tel: +44 (0)1252 878682 Paul Griffiths Chief Executive Island Oil & Gas plc Tel: +353 1 631 3755 Anthony Farrell Davy Tel: + 353 1 679 6363 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 and appraisal programme which in 2006 sawsuccessful Celtic Sea gas wells at the Old Head of Kinsale and the Seven HeadsSub-Area. The Company again secured the Petrolia rig for its 2007 Celtic Seadrilling programme. This commenced in the second quarter of 2007 with anappraisal well at the Old Head of Kinsale gas field, followed by the gasappraisal well at the Schull 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