A further update on Island's takeover

Island Oil & Gas says talks with San Leon Energy nearing conclusion

27 January 2010

Irish exploration group Island Oil & Gas today said that talks over a coming together with compatriot San Leon Energy were close to reaching a conclusion.

Discussions between the two sides have been ongoing since San Leon first announced its 1 for 2.3 all share possible offer for Island back in October last year. Since then, Island has said it would recommend a deal if San Leon made a firm offer on those terms.

Meanwhile, Island has continued to try and build value in its Moroccan and Irish asset portfolio. The company secured two new offshore petroleum agreements for contiguous areas of Sidi Moussa and Foum Draa, Morocco, and is now partnering Serica Energy on those licences.

Elsewhere, there were encouraging preliminary results from 2D seismic reprocessing on Tarfaya, also in Morocco, and the Zag reconnaissance licence was advanced to full exploration licence by the operator, San Leon Energy.

Earlier plans to sell its assets in the Celtic Sea, including stakes in the Old Head of Kinsale and Schull fields, were ditched following the offer from San Leon Energy.

Paul Griffiths, Island’s chief executive, said: “Whilst we looked at every option available to us to develop these assets ourselves, it became obvious that the best way forward for Island and its shareholders was the merger which was tabled by San Leon, post the year end. The businesses are an excellent fit and the enlarged group will have the ability to develop a material energy business.”

[from SmallCap News]

Island Oil & Gas takeover on course for completion

San Leon Energy Plc And Island Oil and Gas PLC Updates On Gartmore Investment Management And Platinum Petroleum Limited Offer

Monday, 25 Jan 2010 02:00am EST

San Leon Energy Plc announced that on October 21, 2009, San Leon had received a further irrevocable undertaking from Gartmore Investment Management, Gartmore would accept or procure acceptance of such offer in respect of, in aggregate, 15,250,000 Island Oil & Gas plc's shares representing approximately 11.22% of Island's issued share capital. Island had received an irrevocable undertaking on October 14, 2009 from Platinum Petroleum Limited, to accept or procure acceptance of such offer in respect of, in aggregate, 25,000,000 Island shares representing approximately 18.4% of Island's issued share capital. Both the Platinum and Gartmore irrevocable undertakings have been extended on the existing terms until April 14, 2010. 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 intend to recommend.

[Reuters]

Report for December 2009

December was another pretty good month with a 4% gain in the FTSE, our portfolio value and our Unit Value.

Since February 2009 the stock market has performed exceptionally and consistently well and our portfolio has gained £4000 in value. Our China Fund contributed £1044 of this rise, and Tesco and Billiton stocks over £700 each. The only fallers have been Island Oil & Gas and the International Property Fund, while Severn Trent has remained unchanged in value over the last 10 months.

The PIC Unit Value now stands at almost 110, i.e. a 10% premium to our contributions. We have £3719 in cash ready for cautious investment.