OilVoice - San Leon Extends Working Capital Facility to Island Oil & Gas

San Leon Extends Working Capital Facility to Island Oil & Gas

Thursday, February 11, 2010

Further to the announcements on 23 December 2009 and 29 January 2010 regarding the provision of a €500,000 working capital facility ("the Loan") to Island Oil & Gas plc ("Island"), San Leon announces that it has agreed to extend the Loan to 26 February 2010.

The Loan and accrued interest will now be repayable on 26 February 2010 if San Leon and Island do not make an announcement pursuant to rule 2.5 of the Irish Takeover Rules ("2.5 Announcement") in relation to Island by this date and is also immediately repayable if a 2.5 Announcement is made in relation to Island by any person other than San Leon. All other terms of the Loan remain the same.

Discussions between San Leon and Island are continuing and both companies are working towards an agreement on an offer for Island, which the Directors of Island currently intend to recommend.