AIM-listed Island Oil and Gas has contracted a semi-submersible drilling unit from the Petrolia Drilling company for work on a three well drilling programme. Two of the three wells to be drilled will be in the Celtic Sea, offshore Ireland.
The company says it is expected that Island's first well will start drilling - subject to the necessary regulatory approvals being granted - by April.
A note from Davy Stockbrokers says that with this contract, Island has demonstrated its commitment to meeting its operational targets and its ability to manage supplies in what is a tight market for rigs.
It adds that targets for next year's drilling programme include the Inishbeg prospect offshore Donegal and the Old Head of Kinsale structure in the Celtic Sea.
'The execution of the drilling contract with Petrolia Drilling Ltd accelerates the company's progress towards evaluating the substantial portfolio of exploration interests the company has established offshore Ireland over the past two years,' commented Paul Griffiths, Island's CEO.
Petroceltic is a joint venture partner and operator with Island Oil and Gas.
