Offshore gas contracts awarded

ISLAND Oil & Gas plc has awarded a contract to Pegasus International UK Ltd, for front-end engineering work ahead of the joint development of the Old Head of Kinsale and Schull Gas Fields. The Studies, which will focus on field development options, including subsea tiebacks, will commence immediately ahead of plans to bring the Fields onstream during 2009.

Following technical evaluation of the drilling results from the recent Old Head of Kinsale and Schull pre-development wells this summer, Island believes the two fields potentially contain in the range of 80 to 120 bcf of recoverable gas, subject to confirmation and verification as part of an updated reserves report that is currently underway.