Bluewater subsidary farm in at Island Oil & Gas Connemara oil field
Island Oil & Gas plc (LSE:IOG), today announces that Supernova Ireland Resources B.V. (“Supernova”), a member of the Bluewater Group (“Bluewater”) of the Netherlands, has executed a second option to farm in for an additional 10% equity in Frontier Exploration Licence 1/04 (the “Licence”) in the Porcupine Basin in the prospective Atlantic Margin off the west coast of Ireland in return for a cash only consideration of Stg£2.25m.
The Licence includes the Connemara oil field and several significant exploration prospects. Supernova has exercised its exclusive option to farm in for 10% equity in the Island operated Licence, thereby reducing the Company’s net equity interest from 51.5% to 41.5%.
Paul Griffiths , Chief Executive of Island commented: “This deal is very much in line with our main strategy of effective risk management by farming down our equity stakes in long term strategic projects, and bringing in major industry players to provide support for what is a technically complex project. The Atlantic Margin projects provide an attractive exploration upside to our wider international portfolio and we remain entirely committed to the project. The £2.5m payment will give us greater flexibility in assessing our wide range of oil and gas projects”
