Exploration Licence Award

RNS Number : 9099V

Island Oil and Gas PLC

20 July 2009

 



ISLAND OIL & GAS PLC 

Award of Full Exploration Licence in Zag, Morocco

• Zag Licence advances from Reconnaissance to Full Exploration Licence status

• Initial work on Zag Licence completed

  • Aeromagnetic survey has illustrated promising structures

  • 60km anticline shows potential for hydrocarbon reserves

• New RWE farm-in to Moroccan licence adjacent to Zag
  

Island Oil & Gas Plc, (LSE: IOG) ('Island' or the 'Company') is very pleased to announce that following the completion of negotiations with the Office National des Hydrocarbures et des Mines ('ONHYM') , the Zag Reconnaissance Licence has been upgraded to a full Exploration Licence, which was signed on the 18th of June in Rabat and was approved for release by ONHYM on the 17th July.

The high resolution aeromagnetic survey completed earlier in 2009, which was integrated with surface and subsurface data, indicated some structures; including a 60 km long anticline with the potential for hydrocarbon reserves. 

The Agreement is valid for up to 8 years and covers a work programme which includes seismic acquisition and geological studies within the first thirty months.

San Leon Energy operates the Zag Exploration Licence with a 37.5% stake, Island has a 15% interest, and ONHYM has 25%. The other partner is Longreach Oil and Gas with 22.5%. ONHYM's 25% interest is free carried until a discovery is made and the development phase is agreed to have commenced.

Commenting on the Licence awards, Paul Griffiths Islands CEO said:

'This is excellent news for Island Oil & Gas. We are now moving forward on three fronts in Morocco, which has become a key area of focus. We are committed to what we believe to be one of the most attractive emerging petroleum provinces in the world.

We are confident that Zag is of considerable prospectivity and we look forward to working with our partners to fully realise the value of the Zag licence.'

20 July 2009

Island Oil & Gas plc	Tel: [phone]
Paul Griffiths
Carl Kindinger
www.islandoilandgas.com
Davy (NOMAD and broker)	Tel: [phone]
Anthony Farrell
Matrix Corporate Capital	Tel [phone]
Louis Castro
Alexander David Securities	Tel + 44 (0)20 7448 9800
David Scott
College Hill (PR)	Tel: [phone]
Paddy Blewer
Nick Elwes

 

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