01 May 2008
Lansdowne Oil & Gas plc (“Lansdowne” or “the Company”)
Operational Update – commencement of seismic survey
Lansdowne Oil & Gas plc, the Dublin-based exploration company, is pleased to announce that a 2D seismic acquisition programme has commenced over recently awarded Licence 5/08, in the Celtic Sea, offshore Ireland.
Standard Exploration Licence 5/08 was awarded last month to Lansdowne’s recently acquired wholly-owned subsidiary Milesian Oil & Gas Limited (“Milesian”). Standard Exploration Licence 5/08 covers an area of 449 sq kms over parts of blocks 47/25, 48/21, and 48/22. The blocks are located 30 kms from the coastline, in water depths of approximately 100 metres.
The Norwegian based company, Wavefield Inseis ASA, is carrying out the survey on behalf of Milesian/Lansdowne using the M/V Malene Ëœstervold, which sailed from Cork on 29 April 2008 and commenced seismic acquisition at 15.00 Hours on 30 April 2008. The 2D seismic survey of approximately 485 kms will be acquired over the Amergin and Eremon structures that have been mapped from existing seismic data. Amergin has been independently verified as having best case potentially recoverable prospective resources of 63 million barrels of oil equivalent (“MMBOE”).
Standard Exploration Licence 5/08 is valid for a period of six years (in two three year phases) during which Milesian is required to drill an exploration well and to complete the acquisition of 300 kms of new seismic data within the first three year phase. The ongoing acquisition of seismic data will fulfil the latter obligation. Under the terms of the licence, on 31 March 2011 Milesian is required to surrender 50 per cent. of the licence area.
Steve Boldy, Chief Executive of Lansdowne, commented:
We are pleased that the seismic survey has commenced so quickly after the licence award and look forward to working with Wavefield Inseis on this programme, which we expect to better define the large structures we have identified upon Licence 5/08.
|Lansdowne Oil & Gas plc|
|Chris Moar, Company Secretary||01224 748 480|
|John East & Partners Limited|
|David Worlidge / Simon Clements||020 7628 2200|
|College Hill - London|
|Nick Elwes||020 7457 20200|
Lansdowne Oil and Gas plc
Arnhall Business Park
Tel: +44 (0)1224 748480
Fax: +44 (0)1224 748481
Notes to Editors:
Lansdowne Oil & Gas plc is an independent oil and gas exploration company listed on the AIM market in London with its operations focused on the Irish offshore North Celtic Sea basin. Its operating headquarters is in Dublin.
The Company was founded in December 2005 and admitted to AIM in April 2006 having acquired from Ramco Energy plc its portfolio of Irish exploration and appraisal assets that flank the Kinsale Head gas field and its infrastructure. The Company recently significantly expanded its North Celtic Sea portfolio through the acquisition of Milesian Oil & Gas Limited in December 2007 with its identified exploration prospects for Jurassic oil and gas.
Following the acquisition and interpretation of this new seismic further consideration may become payable to the Milesian vendor shareholders.
An updated Independent Technical Report relating to Milesian’s acreage will be commissioned following the conclusion of the seismic programme. If that report confirms best case potentially recoverable prospective resources of at least 63 MMBOE then a further 2,333,419 new shares in Lansdowne will be issued to the Milesian vendor shareholders.
Additionally for each 1 MMBOE of best case potentially recoverable prospective resources above 63 MMBOE, but capped at a total of 155 MMBOE a further 62,790 new Lansdowne shares will be issued to the Milesian vendor shareholders. Therefore a maximum of 8,110,099 new Lansdowne shares may become issuable where the best case potentially recoverable prospective resources reach 155 MMBOE.
Further information on Lansdowne is available at Lansdowne’s website at www.www.lansdowneoilandgas.com