Exploration company Island Oil & Gas has announced farm-out agreements with EnCore Oil covering Irish and international assets.
The deals cover the Old Head of Kinsale and the Schull gas fields in the Celtic Sea, both of which will be drilled this year, and the Amstel Field off the Netherlands.
EnCore will buy a 15% interest in the Old Head of Kinsale field, reducing Island's stake to 65%. It will have an option to buy another 5%.
EnCore will also take a 12.5% in Schull, with an option to acquire another 7.5%. As a result, Island will have 42.5%, but it is negotiating with minority partners to build up its stake to 62.5%.
Island's stake in the Amstel field will fall to 50% as EnCore will acquire a 10% interest for cash, with an option for another 5%.
