Island Oil report reserves of Kinsale, Schull gas fields

A P50 analysis indicate a strong commercial basis for Island Oil & Gas to develop the 25.6 million boe of resources off Ireland and the Netherlands.

Uchenna Izundu
International Editor

LONDON, Nov. 26 -- A P50 analysis indicate a strong commercial basis for Island Oil & Gas PLC to develop the 25.6 million boe of resources off Ireland and the Netherlands, according to an independent report compiled by Fugro Robertson Ltd.

The report said its Old Head of Kinsale gas field and Schull gas fields off Ireland have 28.9 bcf and 27.7 bcf, respectively, of gross gas reserves on a P50 basis. Kinsale holds 64.4 bcf of gross gas reserves according to a P10 analysis, and Schull has 33.2 bcf of gross gas reserves. Earlier this year the company drilled two successful appraisal wells that demonstrated commercial flow rates from the fields.

Island has started seeking project finance to develop the fields and is in discussions with interested companies that would like to buy an equity stake to help fund any equity component of a project finance package.

Preliminary discussions have started with Marathon Oil Corp., the owners of the Kinsale and Seven Heads gas gathering facilities in the Celtic Sea, to tie back the proposed facilities for Old Head of Kinsale and Schull fields.

Contact Uchenna Izundu at uchennai@pennwell.com.

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