The Netherlands: Assets of Island Oil & Gas BVQ13a Production Licence
Q13b Production Licence
In May 2008, Island Oil & Gas Plc announced that it had sold its wholly owned subsidiary, Island Netherlands BV (‘INBV’) to Delta Hydrocarbons BV (‘Delta’). The assets being disposed of included INBV’s 83.33% interest in the Q13a Production Licence, which contains the undeveloped Amstel Oil Field, and its 100% interest in the Q13b Exploration Licence, covering the shallow part of the Licence and including the undeveloped Zaan oil field and several appraisal and exploration prospects. The Consideration for the Transaction was US$25 million. In addition, Delta advanced to Island US$10 million (the ‘Advance’). It is intended that the Advance will be repaid from an Overriding Royalty Interest (‘ORI’) granted to Island Oil & Gas BV (‘IOGBV’) of 2.5% of the gross (100%) export production from the Amstel Oil Field; and 2% and 1.5% respectively of the gross (100%) export production from the Zaan oil field and any other tie-backs via the future Amstel facilities resulting from any of the licence areas that are the subject of the Transaction. In the event that the ORI does not cover the full amount of the Advance any remaining balance would be repayable in cash or at Delta’s discretion can be converted into Island shares at the average Click on map for a larger image. 
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