21 December 2006
Lansdowne Oil & Gas plc (“Lansdowne” or “the Company”)
Lansdowne Oil & Gas plc applies for successor licences in the Celtic Sea
Lansdowne Oil & Gas plc (“Lansdowne”) announces that it has applied to the Minister of the Department of Communications, Marine and Natural Resources, for successor authorisations for its Licensing Options in the Celtic Sea, following the successful completion of this year’s work programme.
The work successfully completed included:
Reprocessing of c. 400km of existing 2D Seismic data
Purchase and integration of some 560km of 2D seismic data acquired by TGS Fugro in 2005
Additional special geophysical processing studies
Regional studies of Cretaceous reservoir development
Reservoir engineering and conceptual development studies
Comprehensive reports detailing the findings of the work programmes have been completed and presented to the Department of Communications, Marine and Natural Resources.
Lansdowne has been encouraged by the results of this year’s work which, together with Island Oil & Gas’s successful Old Head well (49/23-1), has helped reduce the risk profile of the prospects identified on its acreage.
As a result Lansdowne has filed applications for Standard Exploration Licences over parts of the areas held under Licensing Options 03/2 (Midleton), 03/6 (Rosscarbery) and 03/10 (East Kinsale).
In addition an application has been filed to convert the Seven Heads Oil Licensing Option (03/5) to a Lease Undertaking, to allow Lansdowne and its joint venture partners to continue to evaluate development options. As announced recently by Island Oil and Gas plc, one of the joint venture partners, reservoir engineering studies completed as part of a farm-in arrangement to Lansdowne’s interest in Seven Heads Oil, evaluated a pilot development option based on a short life production profile of 9,000bopd.
Island also announced recently that they would be working jointly with Providence Resources plc to produce a common strategy report for joint development of Celtic Sea oil assets and this study will include the Seven Heads Oil accumulations.
Licensing and Fiscal review
Noel Dempsey T.D., the Minister for the Department of Communications, Marine and Natural Resources, announced earlier this year a review of Licensing and Fiscal terms that apply to the exploration and production of hydrocarbons. It is possible that the existing terms will change as a result of this review and Lansdowne has been informed that any new licences granted as a result of the applications it has filed this week are likely to fall under the new regime. Accordingly, the applications submitted this week are all conditional on the new fiscal terms being acceptable to the applicants.
The outcome of the review of licensing and fiscal terms is expected in the first quarter of 2007.
Farm out programme
A number of companies have expressed an interest in farming into one or more of Lansdowne licences and discussions are continuing, but the conclusion of any agreement will also depend upon the outcome of the licensing and fiscal review.
|Board of Directors
|Jeffrey David Auld
(Independent Non-Executive Chairman)
Dr Stephen Adrian Renwick Boldy
(Chief Executive Officer)
John Daniel Henry McKeown
(Independent Non-Executive Director)
Paramount Court, Corrig Road, Sandyford Business Park, Dublin 18, Ireland
|30 Crown Place,
|Nominated Adviser and Joint Broker
|SP Angel Corporate Finance LLP
Prince Frederick House
35-39 Maddox Street
Tavira Securities Limited
88 Wood Street
|Solicitors to the Company
|Burness Paull LLP
50 Lothian Road
Edinburgh EH3 9WJ
Pinsent Masons LLP
30 Crown Place,
Mason Hayes & Curran
South Bank House
1 Stokes Place
St. Stephen’s Green
|Computershare Investor Services (Ireland) Ltd.
3100 Lake Drive
Citywest Business Campus
Lansdowne Oil and Gas plc
Arnhall Business Park
Tel: +44 (0)1224 748480
Fax: +44 (0)1224 748481
Interests in the applications
Lansdowne Celtic Sea Limited 77%, Island Expro Limited 22%, Sunningdale Oils (Ireland) Limited 1%
Lansdowne Celtic Sea Limited 100%
Seven Heads Oil
Lansdowne Celtic Sea Limited 74%, Island Oil & Gas plc 12.5%, Lundin Petroleum AB,12.5%, Sunningdale Oils (Ireland) Limited 1%
Through an Option Agreement entered into in April 2004, Island can acquire a further 44.4% equity interest in Seven Heads Oil by committing to and funding Lansdowne’s 74% share of costs for an appraisal well to test the oil bearing Middle and Lower Wealden reservoirs in the Seven Heads structure. In this event, Lansdowne’s interest will decrease to 29.6%.