Irish exploration group Island Oil & Gas said today it plans to sell its Netherlands assets to Delta Hydrocarbons BV for $25 million plus future overriding royalty interests on gross production.
The company said the proceeds will be used to develop asset portfolio and reduce debt, and added that Delta will advance an additional $10 million to be repaid from royalty income.
The company said it will repay its existing £12 million loan and has agreed on a new £5 million flexible loan facility.
The company said 'there is considerable potential for adding value through acquiring new licences in the Netherlands' and it is actively considering new ground floor opportunities.
Agencies