Landsdowne Proposes Acquisition of Milesian
Lansdowne Oil & Gas plc announced the proposed acquisition of Milesian Oil & Gas Limited for an initial consideration to be satisfied by the issue of 8,921,118 new Ordinary Shares, representing 30% of the Enlarged Issued Share Capital. Further deferred consideration of up to 8,110,099 new Ordinary Shares may be payable dependent upon the results of a 2D seismic program over Milesian's Celtic Sea acreage. The Acquisition is conditional upon, inter alia, Admission of the new Ordinary Shares to the AIM Market and the passing of all the resolutions at a General Meeting of the Company convened for December 17, 2007.
"We know Milesian and its assets well, and they are an excellent fit with the Lansdowne assets and our strategy," said Steve Boldy, CEO of Lansdowne. "This acquisition will create an enhanced entity which will better enable us to move forward our combined portfolio of prospects."
Milesian's principal assets are Licensing Options 05/2 and 05/1 in the Celtic Sea. These were awarded in 2005 by the Department of Communications Marine and Natural Resources in Ireland and Milesian has carried out regional geological studies and detailed mapping of existing seismic data, resulting in the identification of a number of prospects and leads.
Both of the Licensing Options have been extended until the end of 2007. Under the terms of the Licensing Options, the holder has the first right, exercisable at any time during the period of the option, to an Exploration License over all or part of the area covered by the option. Milesian intends to apply for one or more Standard Exploration Licenses prior to the year-end.
The acreage covered by the Licensing Options is contiguous with some of Lansdowne's Celtic Sea acreage. Within Licensing Option 05/2, Milesian has identified and mapped two large structures, Amergin and Eremon, which are considered prospective for oil in Jurassic reservoir targets.
The Amergin prospect lies in water depth of c. 350ft, some 40 kilometers south of the Irish coast and approximately 60 kilometers west of the Kinsale Head gas field. The primary reservoir objective is the basal Upper Jurassic sandstone sequence proven productive in well 49/9-2 (Helvick discovery), where this sequence flowed on test at a rate of 6,467 bopd of excellent quality 44-degree API oil. Milesian has estimated P50 potentially recoverable prospective resources of 90 MMBbls for the basal Upper Jurassic reservoir.
The Eremon lead lies in water depth of c.350ft, some 40 kilometers south of the Irish Coast and approximately 70 kilometers west of the Kinsale Head gas field. Secondary reservoir targets exist in deeper Jurassic horizons and in shallower Cretaceous Wealden sands. Eremon is classified as an exploration lead and one of the objectives of the additional seismic data program planned for 2008 is to confirm closure and upgrade this structure to prospect status.
Both Lansdowne and Milesian are upstream oil and gas companies holding acreage in the Celtic Sea, offshore southern Ireland. However, while Lansdowne has focused upon targets in the Lower Cretaceous Greensand and Wealden reservoirs, the horizons that produce in the Kinsale, Ballycotton and Seven Heads Gas Fields in the Celtic Sea, Milesian has focused upon Jurassic targets, similar to those that tested oil in the Helvick 49/9-2 discovery.
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