IOG.L Regulatory News (IOG)

16 Jun 2006 15:40

Island Oil and Gas PLC16 June 2006 16 June 2006 ISLAND OIL & GAS PLC Well 48/23-3 Testing Programme Update Island Oil & Gas plc ("Island" or the "Company") today announces that thetesting of Well 48/23-3 at Seven Heads West in the Celtic Sea is continuing. Aspart of the testing programme, gas is currently being flared. Subject tooperational and weather conditions, Island will announce further details at theconclusion of the testing programme in approximately one week. The Well, which was spudded on 4 May 2006 in a water depth of 341 feet, wasdrilled to its planned total depth of 3,237 feet TVD ss. The Well is operated byIsland, on behalf of the Company and its partners, Marathon Seven Heads Limitedand Sunningdale Oils Ireland Limited, and was drilled using the semi-submersibledrilling unit, Petrolia, owned and operated by Petrolia Drilling Limited undercontract to Island. Enquiries: Lisa J Newman MCIPR MIRSNewman ConsultingTel: +44 (0)1252 878682 Notes to Editors: Island was founded in 2003 and listed on AIM in December 2004. The Company hasinterests in nine Irish offshore licences, (four as operator and two astechnical manager), including one producing gas field. Island concluded a Sub-Area Equity Interest Assignment Agreement for the SevenHeads West area with Marathon International Petroleum Hibernia Limited, throughits wholly-owned subsidiary Marathon Seven Heads Limited in February 2006. Underthe Agreement, Island is funding 100% of the cost of the current well, includingtesting, in return for increasing its equity interest in the Seven Heads West,Sub-Area, from 12.5% to 55.75%. Island has operated the well during the drillingperiod but operatorship will revert back to Marathon once drilling and testinghas been completed. This information is provided by RNS The company news service from the London Stock Exchange