Dempsey Announces Offers of Licences on North East Rockall

Dublin, 16 August 2005

The Minister for Communications, Marine and Natural Resources, Noel Dempsey T. D., today announced that offers had been made to applicants for Frontier Exploration Licences in the North East Rockall Basin Licensing Round.

The Round was announced on 27th July 2004 with a closing date of 31st March 2005, which was later extended to 31st May 2005 due to a delay in publication in the EU Journal. The acreage on offer covered 65 full blocks and 12 part blocks, an area of just under 15,800 square kilometres, in a region classified as frontier because of its deep water and challenging environment.

Two applications for licences were received by the deadline, from Island Oil & Gas plc & Shell E&P Ireland. Following a careful assessment by the Department, which considered the work programmes offered, the applicants’ experience and their technical and financial competencies, offers were made on 20th July to both applicants. To date one applicant, Island Oil & Gas plc has accepted the offer.

The areas applied for comprised seven blocks, amounting to approximately 1,650 square kilometres, ten per cent of the total area on offer. These were offered to the applicants, following the agreement of detailed work programmes.

The Frontier Exploration Licences will have a maximum duration of 16 years and will comprise four phases each with its own work obligations.

The Department of Communications, Marine & Natural Resources is still accepting licensing applications for the Slyne/Erris/Donegal Licensing Round. The closing date for applications under this round is 15th March 2006.

ENDS