Lansdowne Oil & Gas plc
(“Lansdowne” or the “Company”)
Licence Update for Lansdowne’s SEL 4/07 Celtic Sea, Offshore Ireland
February 19th 2015
Lansdowne Oil & Gas plc, a North Celtic Sea focussed oil and gas company, is pleased to announce that it has received Irish Government consent to the farm-in agreement entered into on 19th November 2014 with PSE Kinsale Energy Limited (“Kinsale Energy”). Through the 80% interest and as the operator of SEL 4/07 offshore Ireland, Kinsale Energy will fund 100% of the costs of drilling a well on the Midleton prospect. Should the well be tested, Kinsale Energy will also fund Lansdowne’s share of the testing costs, up to US$ 2.5 million (net).
Kinsale Energy has commenced working on well planning and further announcements will be made in due course.
Commenting on the news, Lansdowne CEO Steve Boldy said:
“We are pleased to receive the consent from the Irish Government for the farm-out of Licence 4/07 to Kinsale Energy and look forward to drilling the Midleton gas prospect. Much of the focus on Lansdowne’s Celtic Sea assets in the last couple of years has been on the oil in Barryroe and whilst this remains the core of our portfolio, we continue to see great potential in searching for more gas in the basin. Gas prices remain robust and security of supply continues to be a concern, so any additional volumes we can discover and bring on-stream will be very valuable. ”
Lansdowne Oil & Gas was advised by Macquarie Capital (Europe) Limited in relation to this transaction.
For further information please contact:
Lansdowne Oil & Gas plc
+353 1 495 9259
Cantor Fitzgerald Europe
+44 (0) 20 7894 7000
Qualified Person Review
This release has been reviewed by Stephen Boldy, Chief Executive of Lansdowne, who is a petroleum geologist with 34 years’ experience in petroleum exploration and management. Dr Boldy has consented to the inclusion of the technical information in this release in the form and context in which it appears.
Notes to editors:
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focussed, oil and gas exploration and appraisal company quoted on the AIM market and head quartered in Dublin.
Lansdowne holds extensive acreage, in the North Celtic Sea Basin, an emerging
under-explored province. Lansdowne holds a 20% stake in the Barryroe field, and in addition to SEL 4/07 holds two other exploration Licences – 5/07 (Rosscarbery) and 5/08 (Amergin) that contain drill ready prospects defined on 2011 3D seismic data. The farm-out process is continuing on these other licences to identify partners for a drilling programme.
For more information on Lansdowne, please refer to www.lansdowneoilandgas.com
About the Midleton Prospect
– The Midleton prospect lies approximately 20 km northeast of the Kinsale Head gas field (c. 1.7 TCF reserves) and also 20km to the east of the Ballycotton gas field (c. 60 bcf reserves).
– The main producing reservoir in the Ballycotton and Kinsale Head gas fields is the Lower Cretaceous Greensand / ‘A’ Sand. The Greensand / ‘A’ Sand also forms the primary reservoir target in the Midleton prospect and has been established to be present with good reservoir quality in the nearby 49/11-1 and 49/11-2 wells, which were drilled in downdip locations.
– Additional potential lies in the Lower Cretaceous Upper Wealden sands that are an important secondary reservoir in the Kinsale Head field.
– Midleton lies along a trend of inverted structures along the northern margin of the basin that includes the Ballycotton Field.
– Amplitude brightening at Greensand ‘A’ Sand level is seen on seismic lines across the Midleton prospect, similar to that seen on lines across the Ballycotton Field.
About Kinsale Energy
PSE Kinsale Energy Limited, (formerly Marathon Oil Ireland Limited), has been producing natural gas from its offshore facilities 50km south of the Old Head of Kinsale in the Celtic Sea since 1978. The company was acquired by PETRONAS in April 2009. The company is based in Cork and currently employs 60 people. The company’s facilities include 2 fixed offshore platforms, over 120km of subsea pipelines and a shore terminal. PSE Kinsale Energy Limited operates the Kinsale Head, Ballycotton and Seven Heads Gas Fields. PSE Kinsale Energy Limited also operates a natural gas storage field (Southwest Kinsale).
North Celtic Sea Basin Location Map showing Lansdowne Oil and Gas acreage