Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Kinsale Energy to Farm-in to Lansdowne's SEL 4/07 Celtic Sea, Offshore Ireland
November 19 2014
Lansdowne Oil & Gas plc, a North Celtic Sea focussed oil and gas company, is pleased to announce that it has entered into a farm-in agreement with PSE Kinsale Energy Limited ("Kinsale Energy"), a wholly owned subsidiary of PETRONAS.
Under the terms of the agreement, Kinsale Energy will:
· Acquire an 80% interest and be appointed operator of SEL 4/07 offshore Ireland
· Fund 100% of the costs of drilling a well on the Midleton prospect
· Fund Lansdowne's share of the costs of any testing programme up to US$ 2.5 million (net).
The completion of the farm-in agreement remains subject to Irish Governmental approval.
Commenting on the news, Lansdowne CEO Steve Boldy said:
"We are delighted to welcome Kinsale Energy to Licence 4/07 and look forward to drilling the Midleton gas prospect. Kinsale Energy's team has a wealth of operating experience and has been producing gas safely from the Kinsale gas field and its satellites since 1978. Securing a farm-in partner for Midleton is a critical first step to delivering our objective of a multi-well programme in the Celtic Sea which, in addition to exploration wells, we expect to also include further appraisal/pre-development drilling on the Barryroe oil field".
Lansdowne Oil & Gas was advised by Macquarie Capital (Europe) Limited in relation to this transaction.
For further information please contact:
Lansdowne Oil & Gas plc Steve Boldy Richard Slape |
+353 1 495 9259 |
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Cantor Fitzgerald Europe Sarah Wharry David Porter |
+44 (0) 20 7894 7000 |
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Qualified Person Review
This release has been reviewed by Stephen Boldy, Chief Executive of Lansdowne, who is a petroleum geologist with 34 years' experience in petroleum exploration and management. Dr Boldy has consented to the inclusion of the technical information in this release in the form and context in which it appears.
Notes to editors:
About Lansdowne
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focussed, oil and gas exploration and appraisal company quoted on the AIM market and head quartered in Dublin.
Lansdowne holds extensive acreage, in the North Celtic Sea Basin, an emerging
under-explored province. Lansdowne holds a 20% stake in the Barryroe field, and in addition to SEL 4/07 holds two other exploration Licences - 5/07 (Rosscarbery) and 5/08 (Amergin) that contain drill ready prospects defined on 2011 3D seismic data. The farm-out process is continuing on these other licences to identify partners for a drilling programme.
For more information on Lansdowne, please refer to www.lansdowneoilandgas.com
About the Midleton Prospect
· The Midleton prospect lies approximately 20 km northeast of the Kinsale Head gas field (c. 1.7 TCF reserves) and also 20km to the east of the Ballycotton gas field (c. 60 bcf reserves).
· The main producing reservoir in the Ballycotton and Kinsale Head gas fields is the Lower Cretaceous Greensand / 'A' Sand. The Greensand / 'A' Sand also forms the primary reservoir target in the Midleton prospect and has been established to be present with good reservoir quality in the nearby 49/11-1 and 49/11-2 wells, which were drilled in downdip locations.
· Additional potential lies in the Lower Cretaceous Upper Wealden sands that are an important secondary reservoir in the Kinsale Head field.
· Midleton lies along a trend of inverted structures along the northern margin of the basin that includes the Ballycotton Field.
· Amplitude brightening at Greensand 'A' Sand level is seen on seismic lines across the Midleton prospect, similar to that seen on lines across the Ballycotton Field.
About Kinsale Energy
PSE Kinsale Energy Limited, (formerly Marathon Oil Ireland Limited), has been producing natural gas from its offshore facilities 50km south of the Old Head of Kinsale in the Celtic Sea since 1978. The company was acquired by PETRONAS in April 2009. The company is based in Cork and currently employs 60 people. The company's facilities include 2 fixed offshore platforms, over 120km of subsea pipelines and a shore terminal. PSE Kinsale Energy Limited operates the Kinsale Head, Ballycotton and Seven Heads Gas Fields. PSE Kinsale Energy Limited also operates a natural gas storage field (Southwest Kinsale).
www.kinsaleenergy.ie
About PETRONAS
Petroliam Nasional Berhad (PETRONAS) is Malaysia's fully integrated oil and gas multinational ranked among the largest corporations on FORTUNE Global 500®. Operating its core business in the Upstream and Downstream sectors, PETRONAS has a presence in more than 30 countries since its incorporation in 1974. PETRONAS strives to contribute to the wellbeing of the people and nations wherever it operates by developing and adding value to the oil and gas resources in a manner that carefully balances commercial, environmental and social considerations.
www.petronas.com
North Celtic Sea Basin Location Map showing Lansdowne Oil and Gas acreage
Please click on the link to view the full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/4405X_1-2014-11-19.pdf
