Potential Oil Fields Being Opened for Exploratory Drilling in the Atlantic Northeast of Iceland

Potential Oil Fields Being Opened for Exploratory Drilling in the Atlantic Northeast of Iceland

Wednesday, August 13th 2008

Following the decision of the Icelandic government to start tendering exclusive licences in January 2009 for oil exploration in the Dreki area (in the Atlantic, northeast of Iceland on the Jan Mayen Ridge, between Iceland and Jan Mayen Island), an international conference has been announced in Reykjavik on 4-5 September. The Icelandic National Energy Authority and the Ministry of Industry have organized the conference, which is entitled Iceland Exploration Conference 2008.

The speakers at the conference are specialists from the Nordic countries with extensive experience in geological research and oil exploration in the North Atlantic. The conference is intended for geologists, exploration experts and new development managers at oil exploration and oil companies.

Seismic surveys and other geophysical measurements indicate that producible quantities of oil and gas could be found in the Dreki Area as they have been in adjacent and geologically similar areas. Recent strides in drilling and production technology along with other nations’ experience with oil and gas production at great ocean depths and in northerly regions have made searching for these resources in the area possible. Further research, including exploratory drilling, is necessary to verify whether oil and gas exist in the area. The Government’s decision is based on the findings of a detailed strategic environmental assessment report on the matter.

“We have high expectations of finding oil in the Dreki area since scientific research has indicated that valuable oil resources may be found there,” said Minister of Industry Ossur Skarphedinsson. “We therefore urge all parties interested in new oil fields in northern areas to attend the conference in Reykjavik.”

Mr. Kristinn Einarsson, Project Coordinator at Icelandic National Energy Authority, says: “At the conference we will go through geological data on the area as well as inform on taxation and financial conditions.”

International companies have already shown keen interest in explorations in the Dreki Area.

The Iceland Exploration Conference will be held at the Hilton Nordica Hotel in central Reykjavik. Participants from several countries have already registered. All conference information is available on www.nea.is

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