IOG.L Regulatory News (IOG)

16 Jul 2007 07:01

Island Oil and Gas PLC16 July 2007 16 July 2007 ISLAND OIL & GAS PLC COMMENCEMENT OF SCHULL GAS APPRAISAL WELL Island Oil & Gas plc ("Island" or the "Company") (LSE:IOG) today announces thatit has spudded gas appraisal well 57/2-3 ("Well 57/2-3") on Exploration Licence5/05 (the Schull Field) in the Celtic Sea, offshore Ireland. Well 57/2-3 followson from Islands successful gas appraisal well at the nearby Old Head of Kinsale.Island is operator with a 62.5% interest. Well 57/2-3 was spudded on 14 July 2007 in a water depth of approximately 360feet. The Schull Field was first discovered by the Total operated well 57/7-2,which discovered a 60 foot gas column, in 1987 at a time of lower gas prices andno available access to gas infrastructure. The area contains two more potentialgas structures, the Schull Central and the Schull North prospects. Well 57/2-3is designed to demonstrate the gas potential in the greater Schull area. 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 drilling and testing, Providence Resources plc will takepossession of the Petrolia Rig, allowing Island to reduce its mobilisation anddemobilisation costs. Island's partners in the Schull Field are Valhalla Oil and Gas Limited with a25% interest and EnCore Oil plc with a 12.5% interest. Enquiries: Paul GriffithsChief ExecutiveIsland Oil & Gas plc Tel: +353 1 631 3755 Lisa J Newman MCIPR MIRSNewman Consulting Tel: +44 (0)1252 878682 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 a successful gas appraisal well at the Old Head ofKinsale 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