Completion of asset sale

RNS Number : 2700V

Island Oil and Gas PLC

27 May 2008

 



Island Oil & Gas plc  

Completion of Netherlands Asset Sale   

Island Oil & Gas PLC ('Island' or the 'Company') is pleased to announce the completion ('Completion') of the sale of its wholly owned subsidiary, Island Netherlands BV ('INBV'), to Delta Hydrocarbons B.V. ('Delta') following the announcement of a signed Term Sheet (the 'Transaction') on 12 May 2008. As a result of Completion the Company has received an initial payment of US$ 35,000,000 from Delta, representing the US$ 25,000,000 purchase price and a US$ 10,000,000 advance against the 2.5% Overriding Royalty Interest payable to Island on the commencement of production from the Amstel oil field.

The funds will be used to further advance the Company's portfolio of assets and opportunities and to reduce corporate debt.  

27 May 2008 

Further information: 

Island Oil and Gas plc Paul Griffiths / Karl Prenderville www.islandoilandgas.com	Tel: [phone]
Davy (NOMAD and broker) Anthony Farrell	Tel: [phone]
Landsbanki (UK broker) Simon Robinson	Tel: [phone]
College Hill (Financial PR) Paddy Blewer / Nick Elwes	Tel: [phone]

 

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