North Celtic Sea focused explorer Lansdowne Oil & Gas has entered into a farm-in agreement with PSE Kinsale Energy - a wholly owned subsidiary of Malaysia's Petronas.
Under the terms of the agreement, Kinsale Energy will acquire an 80% interest and be appointed operator of SEL 4/07 offshore Ireland, fund 100% of the costs of drilling a well on the Midleton prospect, and fund Lansdowne's share of the costs of any testing program up to US$2.5 million (net).
The completion of the farm-in agreement remains subject to Irish Governmental approval.
Lansdowne's CEO Steve Boldy said: "Kinsale Energy's team has a wealth of operating experience and has been producing gas safely from the Kinsale gas field and its satellites since 1978. Securing a farm-in partner for Midleton is a critical first step to delivering our objective of a multi-well program in the Celtic Sea which, in addition to exploration wells, we expect to also include further appraisal/pre-development drilling on the Barryroe oil field."
Kinsale Energy, (formerly Marathon Oil Ireland), has been producing natural gas from its facilities off the Old Head of Kinsale since 1978.
The company was acquired by Petronas in April 2009 and currently employs 60 people. Kinsale Energy also operates the Kinsale Head, Ballycotton and Seven Heads gas fields in the Celtic Sea and a natural gas storage field (Southwest Kinsale).