Island Oil & Gas has declined to exercise an Option Agreement with Lansdowne Celtic Sea Limited to farm-in to an area of Standard Exploration License 4/07 covering part blocks 49/11(p), 49/12(p), 49/13(p), 49/17(p) and 49/18(p) in the Celtic Sea offshore Ireland. The Option Agreement allowed Island to secure rights to protect acreage in the event that any structures defined by seismic acquisition in Island's Old Head of Kinsale License extended into the Option Area
Following the acquisition, processing and interpretation of a seismic survey over Standard Exploration License 4/05 (the "Old Head of Kinsale"), covering part blocks 49/17(p), 49/22(p) & 49/23(p), Island now believes that it has sufficient materiality within its existing license boundaries to progress its near-term strategy.
Commenting on the decision, Chief Executive Paul Griffiths said, "Recent events have highlighted the importance of having sufficient gas storage capacity to meet unforeseen circumstances. Security of supply will remain a key strategic goal for all European states -- the majority only have a number of days emergency storage capacity.
"Island is committed to realizing the potential of its undeveloped Old Head of Kinsale and Schull gas fields. We believe that there is an opportunity to contribute both to a material increase in Ireland's gas storage capacity, and also gain a significant commercial advantage through our dominant asset position."
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