SEA.L Regulatory News (SEA)

21 Dec 2006 09:27

Lansdowne Oil & Gas plc21 December 2006 LANSDOWNE OIL & GAS plcAPPLIES FOR SUCCESSOR LICENCES IN THE CELTIC SEA Lansdowne Oil & Gas plc ("Lansdowne") announces that it has applied to theMinister of the Department of Communications, Marine and Natural Resources, forsuccessor authorisations for its Licensing Options in the Celtic Sea, followingthe successful completion of this year's work programme. The work successfully completed included: • Reprocessing of c. 400km of existing 2D Seismic data • Purchase and integration of some 560km of 2D seismic data acquired by TGS Fugro in 2005 • Additional special geophysical processing studies • Regional studies of Cretaceous reservoir development • Reservoir engineering and conceptual development studies Comprehensive reports detailing the findings of the work programmes have beencompleted and presented to the Department of Communications, Marine and NaturalResources. Lansdowne has been encouraged by the results of this year's work which, togetherwith Island Oil & Gas's successful Old Head well (49/23-1), has helped reducethe risk profile of the prospects identified on its acreage. As a result Lansdowne has filed applications for Standard Exploration Licencesover parts of the areas held under Licensing Options 03/2 (Midleton), 03/6(Rosscarbery) and 03/10 (East Kinsale). In addition an application has been filed to convert the Seven Heads OilLicensing Option (03/5) to a Lease Undertaking, to allow Lansdowne and its jointventure partners to continue to evaluate development options. As announcedrecently by Island Oil and Gas plc, one of the joint venture partners, reservoirengineering studies completed as part of a farm-in arrangement to Lansdowne'sinterest in Seven Heads Oil, evaluated a pilot development option based on ashort life production profile of 9,000bopd. Island also announced recently that they would be working jointly withProvidence Resources plc to produce a common strategy report for jointdevelopment of Celtic Sea oil assets and this study will include the Seven HeadsOil accumulations. Licensing and Fiscal review Noel Dempsey T.D., the Minister for the Department of Communications, Marine andNatural Resources, announced earlier this year a review of Licensing and Fiscalterms that apply to the exploration and production of hydrocarbons. It ispossible that the existing terms will change as a result of this review andLansdowne has been informed that any new licences granted as a result of theapplications it has filed this week are likely to fall under the new regime.Accordingly, the applications submitted this week are all conditional on the newfiscal terms being acceptable to the applicants. The outcome of the review of licensing and fiscal terms is expected in the firstquarter of 2007. Farm out programme A number of companies have expressed an interest in farming into one or more ofLansdowne licences and discussions are continuing, but the conclusion of anyagreement will also depend upon the outcome of the licensing and fiscal review. 21 December 2006 ENQUIRIES: Lansdowne Oil & Gas plcSteve Boldy, CEO 01224 748 480Chris Moar, FD 01224 748 480 John East & Partners LimitedSimon Clements 020 7628 2200 College HillNick Elwes / Paddy Blewer 020 7457 2020 www.lansdowneoilandgas.com NOTES Interests in the applications Rosscarbery Lansdowne Celtic Sea Limited 77%, Island Expro Limited 22%, Sunningdale Oils(Ireland) Limited 1% Midleton/East Kinsale Lansdowne Celtic Sea Limited 100% Seven Heads Oil Lansdowne Celtic Sea Limited 74%, Island Oil & Gas plc 12.5%, Lundin PetroleumAB,12.5%, Sunningdale Oils (Ireland) Limited 1% Through an Option Agreement entered into in April 2004, Island can acquire afurther 44.4% equity interest in Seven Heads Oil by committing to and fundingLansdowne's 74% share of costs for an appraisal well to test the oil bearingMiddle and Lower Wealden reservoirs in the Seven Heads structure. In this event,Lansdowne's interest will decrease to 29.6%. This information is provided by RNS The company news service from the London Stock Exchange