Island Netherlands secures Q13b exploration license

The Minister of Economic Affairs of the Netherlands has awarded the Q13b exploration license to Island Netherlands B.V. (INBV), a wholly owned subsidiary of Island, and Aceiro Energy B.V. Island.

Offshore staff

DUBLIN -- The Minister of Economic Affairs of the Netherlands has awarded the Q13b exploration license to Island Netherlands B.V. (INBV), a wholly owned subsidiary of Island, and Aceiro Energy B.V. Island. The license is valid for five years.

Island intends to file a request with the Minister of Economic Affairs in the Netherlands for splitting the license into a shallow (oil) and deep (gas) part defined by the top of the Trias stratigraphic marker. Island will operate the shallow part with a 100% equity interest and Cirrus Energy Nederland B.V. will operate, on behalf of its partner Petro-Canada Netherlands B.V., the deep part in which Island will have no equity interest.

The Q13b Exploration license covers an area of 369 sq km (142 sq mi) and contains the northern part of the Zaan field, a lower cretaceous field with up to 12.4 MMbl of gross oil in place.

The license work program includes the drilling, subject to technical and commercial justification, and testing of an appraisal well in the Zaan field in the second year of the license and a further test well in the third year of the license

The Zaan field and the Q13-5 appraisal prospect are located within the West Netherlands basin, a prolific oil and gas province. Both structures, if successfully appraised, are anticipated to be developed as satellite tie-backs to Island's Amstel field development project.

04/09/2008

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