Island reveals drilling plans

ISLAND Oil & Gas is to start drilling off the Donegal coast within days, it was confirmed yesterday.

This follows the successful drilling of two wells off Kinsale.

The group also announced that founder director Jack McKinney has resigned from the board.

He also left his position as acting finance director to pursue other interests, a statement to the stock exchange said.

Island chairman Bryan Benitz said: “The company recognises and thanks Jack for his immense contribution to the company’s successful progress since its flotation in December 2004, that culminated in the execution of the two successful Celtic Sea wells this year.

“The company’s strong financial management team remains in place to carry the business forward. We sincerely thank him for all his valuable counsel and support, and wish him well.”

Mr McKinney was a stakeholder in Hamilton Leasing with his brother Craig, who went on to head up Woodchester in Ireland. Both benefited financially when Hamilton was subsumed into Woodchester.

He came out of retirement to get involved with Island in 2003 to help it through its flotation.

Island recently announced the successful completion of two wells off Kinsale close to the Seven Heads where gas was found in each case.

Prior to the commencement of the drilling off Kinsale, chief executive, Paul Griffiths, said he was anticipating a positive outcome.

However in the case of the Donegal Basin the outlook was far less certain than for the Celtic Sea, he said.

Island added that it is to expand and restructure its board to reflect the emergence of Platinum as a major shareholder, with 33.27% of the share capital.

This followed the recent conversion of two loan notes totalling £10 million (€14.7 million) which resulted in the issue of 10 million new ordinary shares to Platinum. Platinum also holds a further 10 million warrants, which could leave the group with a 41.1% holding eventually.