Island Oil and Gas has turned £5 million losses into an annual £12.4 million pre-tax after selling a Dutch subsidiary for £11 million.

The Dublin-based company, whose interests span the Celtic Sea, North Africa and south-eastern Europe, increased turnover 22 per cent to £2.2 million in the year to July. AIM-quoted Island has discharged all its bank debt and says it now has £34 million in the bank.

Steered by chief executive officer Paul Griffiths, Island successfully tested its Schull gas field project in the Celtic Sea, which flowed at 21 million cubic feet a day and was awarded 30 per cent of the Barryroe Licensing Option, formerly known as Seven Heads Oil. The company agreed a swap deal giving it 50 per cent and making it operator of the Durresi block offshore Albania, in return for another company, OMV, becoming a 50 per cent partner in Island’s Killala licence in the Irish ‘Atlantic Margin’.

Island Oil obtained seven exploration permits in Morocco’s Layounne-Tarfaya Basin, where it will be the operator with a 40 per cent stake. At 18p, down from an all-time high of 135.5p, the shares value the company at £21 million.

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Island Oil and Gas	AIM	£12.24m	10.50p	0.00p
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Dutch sale boosts Island Oil			07/10/2008