Licence Applications

Lansdowne Oil & Gas plc
21 December 2006

LANSDOWNE OIL & GAS plc
APPLIES FOR SUCCESSOR LICENCES IN THE CELTIC SEA



Lansdowne Oil & Gas plc ('Lansdowne') announces that it has applied to the
Minister of the Department of Communications, Marine and Natural Resources, for
successor authorisations for its Licensing Options in the Celtic Sea, following
the successful completion of this year's work programme.


The work successfully completed included:


  • Reprocessing of c. 400km of existing 2D Seismic data
  • Purchase and integration of some 560km of 2D seismic data acquired by TGS
    Fugro in 2005
  • Additional special geophysical processing studies
  • Regional studies of Cretaceous reservoir development
  • Reservoir engineering and conceptual development studies


Comprehensive reports detailing the findings of the work programmes have been
completed and presented to the Department of Communications, Marine and Natural
Resources.


Lansdowne has been encouraged by the results of this year's work which, together
with Island Oil & Gas's successful Old Head well (49/23-1), has helped reduce
the risk profile of the prospects identified on its acreage.


As a result Lansdowne has filed applications for Standard Exploration Licences
over parts of the areas held under Licensing Options 03/2 (Midleton), 03/6
(Rosscarbery) and 03/10 (East Kinsale).


In addition an application has been filed to convert the Seven Heads Oil
Licensing Option (03/5) to a Lease Undertaking, to allow Lansdowne and its joint
venture partners to continue to evaluate development options. As announced
recently by Island Oil and Gas plc, one of the joint venture partners, reservoir
engineering studies completed as part of a farm-in arrangement to Lansdowne's
interest in Seven Heads Oil, evaluated a pilot development option based on a
short life production profile of 9,000bopd.


Island also announced recently that they would be working jointly with
Providence Resources plc to produce a common strategy report for joint
development of Celtic Sea oil assets and this study will include the Seven Heads
Oil accumulations.




Licensing and Fiscal review

Noel Dempsey T.D., the Minister for the Department of Communications, Marine and
Natural Resources, announced earlier this year a review of Licensing and Fiscal
terms that apply to the exploration and production of hydrocarbons. It is
possible that the existing terms will change as a result of this review and
Lansdowne has been informed that any new licences granted as a result of the
applications it has filed this week are likely to fall under the new regime.
Accordingly, the applications submitted this week are all conditional on the new
fiscal terms being acceptable to the applicants.



The outcome of the review of licensing and fiscal terms is expected in the first
quarter of  2007.



Farm out programme

A number of companies have expressed an interest in farming into one or more of
Lansdowne licences and discussions are continuing, but the conclusion of any
agreement will also depend upon the outcome of the licensing and fiscal review.





                                                                21 December 2006



ENQUIRIES:


Lansdowne Oil & Gas plc
Steve Boldy, CEO                                 01224 748 480
Chris Moar, FD                                   01224 748 480


John East & Partners Limited
Simon Clements                                   020 7628 2200

College Hill
Nick Elwes / Paddy Blewer                        020 7457 2020


www.lansdowneoilandgas.com









NOTES



Interests in the applications



Rosscarbery

Lansdowne Celtic Sea Limited 77%, Island Expro Limited 22%, Sunningdale Oils
(Ireland) Limited 1%



Midleton/East Kinsale

Lansdowne Celtic Sea Limited 100%



Seven Heads Oil

Lansdowne Celtic Sea Limited 74%, Island Oil & Gas plc 12.5%, Lundin Petroleum
AB,12.5%, Sunningdale Oils (Ireland) Limited 1%



Through an Option Agreement entered into in April 2004, Island can acquire a
further 44.4% equity interest in Seven Heads Oil by committing to and funding
Lansdowne's 74% share of costs for an appraisal well to test the oil bearing
Middle and Lower Wealden reservoirs in the Seven Heads structure. In this event,
Lansdowne's interest will decrease to 29.6%.


                      This information is provided by RNS
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