Island contracts Kinsale subsea studies

Island Oil & Gas has contracted Pegasus International UK for front-end engineering work relating to two gas field developments in the Celtic Sea off southern Ireland.

Offshore staff

DUBLIN, Ireland --Island Oil & Gas has contracted Pegasus International UK for front-end engineering work relating to two gas field developments in the Celtic Sea off southern Ireland.

Pegasus will work on options for Island's Old Head of Kinsale and Schull gas discoveries, providing a technical definition for the subsea tieback options, and the operational and functional requirements for the subsea facilities. The sole platform infrastructure in the area serves Marathon's Kinsale fields.

Under this Phase 1 program, Pegasus also will generate production profiles, gas composition, and condensate recovery volumes for the two fields. These, combined with other studies in progress, will provide a basis for field development and cost estimates, which Island aims to firm up under Phase 2, starting end-2007.

Following subsequent discussions with potential service and equipment suppliers, Island aims to submit a development plan to Ireland's Ministry for Communications, Energy, and Natural Resources. Island estimates recoverable reserves from the two fields at 80-120 bcf. It is also investigating gas storage opportunities, as a possible strategic gas reserve for Ireland.

08/20/2007

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