Operations Update

    RNS Number : 8617H
  Irvine Energy PLC
  11 November 2008
   

    Irvine Energy plc / Index: AIM / Epic: IVE / Sector: Exploration & Production
    11 November 2008

    Irvine Energy plc ('Irvine Energy' or 'the Company')
    Operations Update

    Irvine Energy plc, the AIM listed oil and gas exploration and production company, provides the following update on its operations in the
United States.
    Operator and Debt Facility
    In Kansas, cost over-runs have been incurred on the 3D seismic programme as well as additional operational expenditure. The exact amount
of these overruns payable by Irvine is being agreed with the operator and the Company will make a further announcement regarding the cost
overruns in due course.
    The Company currently intends to fund these additional expenses out of the non-core asset disposal programme referred to in its
announcement of 30 September 2008.  However, the timing and consideration of these disposals is dependent on market conditions.  The Company
is in discussion with a number of parties regarding potential asset disposals. However, at this stage no guidance can be given as to the
likely timing of any disposal or that these discussions will be concluded satisfactorily.
    As a result of these cost over runs, the below expectation drilling results in the previous Kansas drilling programme and the Company's
low current production levels, GasRock has exercised its discretion not to make any further advances under the debt facility until these
matters are resolved to their satisfaction.  This is likely to involve varying the terms of the facility and result in an increase in the
production override payable by the Company to GasRock.
    As a consequence of these circumstances, the Company may need to raise additional finance and the directors are considering all options
including and not limited to, equity or debt finance, further asset sales or a strategic investment.
    Coal Bed Methane
    Irvine Energy has received an independent contingent gas resource for the Hartshorne coalbed methane ("CBM") project in Oklahoma. The
report, from Houston based Netherland, Sewell and Associates, Inc ("NSAI") highlights a best estimate ("C2") contingent gas resource of 66.3
BCF of which 6.8 BCF is attributable to Irvine. 
    The table below highlights the gross original gas-in-place ("OGIP"), gross contingent gas resource and net contingent gas resource
attributable to the Hartshorne project:
              Hartshorne Coal Bed Methane Project 
                     Gross (100%)  Contingent Gas Resource (BCF)
 Category             OGIP (BCF)   Gross (100%)   Net to Irvine
  
 Low Estimate (C1)      110.3          27.2            2.8
 Best Estimate (C2)     122.0          66.3            6.8
 High Estimate (C3)     131.1          98.3            10.1

    The resource estimate is in accordance with definitions and guidelines set forth in the 2007 Petroleum Resource Management System
approved by the Society of Petroleum Engineers.  The report does not include economic analysis for these properties. However, based on
analogous field developments, it appears that the best estimate contingent resources in this report has a reasonable chance of being
commercial.
    Operations Update

    In Oklahoma, the Company's first horizontal Woodford shale gas well, Jones 1-5H, had the Oklahoma pumping unit set on 28 October 2008 to
continue unloading fracture stimulation fluid, and will soon record gas production as it is hooked up to gas sales.  The Priegel 3-10 is
currently producing 2 BOPD and 120 BWPD, with plans for field development currently being evaluated.

    In Kansas, the Ayres 1-20 well is currently shut-in waiting on completion of a tank battery, upon which oil sales will commence.  The
Udal 3D seismic shoot is currently being processed and the Ayres 3D shoot is currently being mapped for additional Bartlesville locations.
    The information contained in this announcement has been reviewed and approved by Chuck Bingle, Irvine's Technical Manager (member of the
SPE) and competent person under the guidelines of the AIM rules.
    * * ENDS * *
    For further information please visit http://www.irvineenergy.com or contact:
 Michael Frayne   Irvine Energy plc            Tel: [phone]
 Doug Manner      Irvine Energy plc            Tel: [phone]
 Tim Redfern      Evolution Securities         Tel: [phone]
 Adam James       Evolution Securities         Tel: [phone]
 Hugo de Salis    St Brides Media & Finance    Tel: [phone]
 Victoria Thomas  St Brides Media & Finance    Tel: [phone]
    Notes:
    Irvine Energy plc is an AIM listed company focussed on the development of onshore conventional and unconventional oil and gas projects
in the USA.  The Company currently has exploration and production projects in Kansas and Oklahoma, which it is operating and developing in
conjunction with its joint venture partner Metro Energy Group ("Metro").
    It is the Company's objective to become a significant player in both the conventional and unconventional USA oil and gas markets, by
building a solid portfolio of assets within the highly prospective Kansas/Oklahoma region.  Irvine has an aggressive growth strategy in
place with a work programme to advance its production projects and upgrade its contingent resources to reserves.  The Board believes that by
assembling a combination of conventional and unconventional plays, it provides the Company with a balanced low risk, high capital efficient
development programme.

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