Farm-out agreements to help develop group’s offshore interests

ISLAND Oil & Gas plc has announced it has concluded two farm-out agreements to help develop its Irish offshore interests.

The first deal could see gas coming ashore from the group’s Old Head of Kinsale field in the last quarter of 2008, the company said yesterday.

It involves a farm out agreement with Valhalla Oil and Gas, which involves the group taking a 20% interest in Island’s Old Head of Kinsale gas field in the Celtic Sea.