Offshore staff

DUBLIN, Ireland --Island Oil and Gas has concluded two farm-out agreements offshore Ireland.

Valhalla Oil and Gas is acquiring 20% of the Island-operated exploration license 4/05 in the Celtic Sea. It also will participate in an upcoming appraisal well on the Old Head of Kinsale gas field. If the test succeeds, the partners expect to complete this and the 2006 discovery well as tiebacks to Marathon's Kinsale platform in 2008.

In Island's frontier exploration license 1/04 in the Porcupine basin, Netherlands-based Oyster Energy has an option to farm into 10%. Valhalla is also a partner in this holding which covers one full and three part-blocks, and contains the undeveloped Connemara oilfield. Horizon Energy Partners is performing an integrated subsurface study to determine the field's potential performance, and the commercial feasibility of a development.

4/10/2007