16 April 2008
Lansdowne Oil & Gas plc (“Lansdowne” or “the Company”)
Exploration Licence Award and Acreage Extension
Lansdowne Oil & Gas plc, the Dublin-based exploration company, is pleased to announce that its recently acquired wholly-owned subsidiary Milesian Oil & Gas Limited (“Milesian”) has been awarded a new exploration licence in the North Celtic Sea basin, off the south coast of Ireland.
Standard Exploration Licence 5/08 is a successor authorisation to Milesian’s previously held Licensing Option (05/2) and 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, has been contracted to carry out a 2D seismic survey of approximately 485 kms 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).
The M/V Malene Ã˜stervold seismic vessel is expected to arrive in Irish waters and to commence operations on behalf of Milesian at the end of this month.
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 proposed acquisition of new 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.
Lansdowne has also been awarded an extension to the area of Exploration Licence 4/07 (Midleton / East Kinsale) to take in part of Block 49/13, held previously by Milesian under Licensing Option 05/1. The area has been extended to encompass a fault block lead identified at Jurassic level and this will be evaluated further in conjunction with the prospects already identified on Midleton / East Kinsale at the Cretaceous level. The new area of Licence 4/07 is 542 sq kms compared with the previous area of 494 sq kms.
Emmet Brown, Business Development Director of Lansdowne, commented:
Lansdowne now has a balanced portfolio of near-term exploration and appraisal gas satellite prospects along with these large, oil prospective targets. We are delighted with this award and the extension and look forward to quickly completing the seismic programme, the results of which should underpin the potential of this new licence and lead to exploratory drilling on one or both of the prospects. We are currently talking with potential farm-in partners in this regard.
|Lansdowne Oil & Gas plc|
|Steve Boldy||Chief Executive Officer||01224 748480|
|Chris Moar||Finance Director||01224 748480|
|John East & Partners Limited|
|David Worlidge||Director||020 7628 2200|
|Johnny Townsend||Director||020 7628 2200|
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