DUBLIN, Ireland --The governments of Albania and Ireland have approved an assets swap agreement involving Island Oil & Gas and Austria's OMV.
Island is taking 50% of OMV's 4,200 sq km (1,622 sq mi) Durresi block along western Albania's Adriatic coast. It claims there is strong potential for finding oil and gas, based on results from similar play types in southern Italy, including the producing offshore Aquila field. In 1993, Agip drilled the A4-1X discovery in the block, with estimated potential resources of 151 bcf of gas and 35 MM bbl of condensate.
In return, Island has transferred to OMV 50% of frontier exploration license 3/05 in the Rockall basin off Ireland's west coast. Island plans a 3D seismic survey in 2008 to assess possible drilling locations on the large Killala prospect.