Island Oil & Gas plc announced that a 2D seismic acquisition program has commenced over Standard Exploration Licenses 4/05 and 5/05 in the Celtic Sea, offshore Ireland.
The Irish Marine Institute (the Contractor), the national agency responsible for Marine Research, Technology, Development and Innovation, has been contracted, using the Celtic Explorer, to carry out several seismic surveys over the Old Head and Schull gas fields and a number of adjacent targets for exploration and appraisal drilling. The Contractor acquired high resolution seismic surveys for Island over the Old Head area in 2006 and 2007 following which, successful gas exploration and appraisal wells were drilled by Island.
The seismic surveys will target a potential extension of the Old Head field to the southeast of the existing accumulation proven by the 49/23-1, 49/23-2 and 49/23-2z wells and low risk exploration prospects adjacent to the Schull and Old Head gas fields. This new seismic will help to confirm the potential for the Old Head and Schull Licenses to contain a number of additional gas targets adjacent to existing infrastructure at Kinsale and Seven Heads. Any successful drilling would make a significant contribution to extending the life of Ireland's only current offshore gas gathering infrastructure. This comes at a time when uncertainty over security of supply and sharply rising oil and gas commodity prices are key strategic issues that could have a major impact on predictions for future economic growth.
Island's partners in the Old Head and Schull Licenses are Valhalla Oil and Gas Limited and EnCore Oil plc.
"Wholesale gas prices have increased by nearly 50% during the past 12 months and are projected to increase by up to 50% again over the next 18 months," said CEO Paul Griffiths. "This greatly increases the value of our Old Head and Schull gas developments."
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