OilVoice - Island Oil & Gas Provides Moroccan Operational Update

Island Oil & Gas Provides Moroccan Operational Update

Wednesday, February 25, 2009

• Aeromag survey defined promising structures
• Imminent negotiations with ONHYM to upgrade Frontier licence into Exploration Licence
• Highly positive regional moves: discoveries and international major farm ins

Island Oil & Gas, the Irish exploration and production company with an international portfolio is very pleased to note today’s statement by San Leon, operator of the Joint Venture set up to explore the Zag basin, onshore Morocco.
Aeromagnetic surveys have defined a number of promising structures. The results of the survey have greatly encouraged the joint venture (Island 20%) and negotiations are to commence on upgrading the Reconnaissance Licence to a full Exploration Licence.

In addition, Island notes the highly positive regional news of both new discoveries on the Algerian side of the basin and the entrance of international major RWE to the licence adjacent to Island’s.

Paul Griffiths, CEO of Island Oil & Gas commented:
“All of these moves are highly positive in both a regional and specific context. The entrance of such a major company as RWE to the adjacent licence validates our first mover activity.

The results from the aeromag, whilst very early, are very exciting. With excellent terms currently being offered in Morocco, we look forward to the future with confidence”