Exploration company Island Oil & Gas is to drill a well in the Seven Heads gas field off Kinsale after reaching agreement with Marathon.
Earlier this week Marathon bought Scottish company's Ramco's 86% stake in the field.
Island will drill the well in a section of the Seven Heads lease in April. The area being drilled is west of the 48/24-6 production well, which the company says has so far encountered some of the best producing gas sands in the field.
Island will fund the cost of the well in return for increasing its stake in the sub-section from 12.5% to 55.75%.
