Coastal drilling contract signed

Island Oil and Gas has signed a contract to explore for gas and oil off the Cork coast, according to The Evening Echo.

The drilling contract is with Petrolia Drilling Limited for the provision of the semi-submersible drilling unit, Petrolia.

“The contract is for a three-well drilling programme, two of which will be drilled in the Celtic Sea in 2006,” said the Kilkenny-based the company.

It’s anticipated that Island’s first well will commence drilling, subject to the necessary regulatory consents being granted, on or about April 1, 2006.

The exploration progamme is expected to focus on a licence held in the Donegal basin.

Paul Griffiths, chief executive of Island, said the drilling contract with Petrolia Drilling, less than 10 months following Island’s introduction to AIM, the specialist stock market for small companies, accelerates the company’s progress towards evaluating the portfolio of exploration interests that it has established offshore Ireland over the past two years.

“The multi-well programme is consistent with Island’s synergy-based approach to appraisal and exploration drilling, which is designed to reduce project costs and increase the potential to add real value to our portfolio," added Mr Griffiths.