UK- Davy says Lansdowne's Celtic Sea drilling is 'welcome' news

(MENAFN- ProactiveInvestors)Lansdowne Oil & Gas (LON:LOGP) has been boosted by the 'welcome' news of fresh drilling activity in Ireland's Celtic Sea. The AIM oil explorer has a 20% stake in the Midleton project near the Kinsale Head gas field which is to be drilled by a subsidiary of Malaysia's national oil company. Kinsale Energy a Petronas company has contracted the Ocean Guardian drilling rig to drill a well on the Midleton where operations are scheduled to get underway in August. 'The news that a well will be drilled this summer to test the Midleton gas prospect in the Celtic Sea is positive for Lansdowne bringing welcome activity and additional options to its current strategic review' said Job Langbroek analyst at Dublin based broker Davy. Midleton is estimated to contain 268bn cubic feet of recoverable gas resources and it is located about 20 kilometres to the northeast of Kinsale Head which hosts 1.7 trillion cubic feet of gas and is owned and operated by Kinsale Energy. Lansdown's share of the Midleton drilling costs are covered by Kinsale Energy as a result of a farm-out deal agreed last year. Steve Boldy Lansdowne's chief executive said: "We are pleased with the rapid progress Kinsale Energy has made since taking over as operator and look forward to the drilling of the Midleton well later this year." Lansdown has been undertaking a strategic review to consider a number of corporate options including but not limited to potential mergers a sale of the company or share sales to third parties. Nevertheless the company last month told investors that its current structure and strategy remains viable.