The UK stock market’s filled with plenty of high-yield income stock opportunities right now. And while double-digit payouts can be risky, several companies have so far managed to keep on rewarding loyal shareholders with chunky passive income.

With that in mind, let’s explore two such investments. Are these terrific buying opportunities, or should I steer clear?

An under-the-radar energy play

First on the list is the FTSE 250 enterprise, Energean (LSE:ENOG). With operating cash flows remaining stable, the oil & gas producer has continued to maintain dividends for the third year in a row. Yet with the share price slipping, the yield’s been steadily climbing. And right now, investors can lock in a massive 10.28% payout.

What’s going on?

The business continues to be highly cash generative and has even secured exceptional contracted revenues of $20bn, granting management rare long-term visibility. Yet this might be just the tip of the iceberg.

With the company’s second oil train to its flagship floating production storage and offloading (FPSO) vessel already entering commercial operation, the firm’s production capacity is on track to expand considerably.

In other words, operating cash flows could be set to grow even larger, paving the way for even more dividends.But if that’s the case, why aren’t more investors taking advantage of the high yield?

Risk versus reward

Despite what the share price suggests, Energean’s incoming cash flow surge hasn’t gone unnoticed. Institutional analysts are fully aware of this growth catalyst, yet they still refuse to aggressively buy shares for one big reason: systemic geopolitical risk.

The problem is that Energean’s FPSO is operating just off the coast of Israel – essentially next door to the US-Iran conflict. And all it takes is one drone strike to damage or potentially destroy Energean’s most valuable asset.

At the start of March, the Israeli Ministry of Energy and Infrastructure had already ordered the company to temporarily cease production as a result of escalating geopolitical conflict. And while Energean received the green light to restart operations earlier this month, future shutdown orders remain a persistent and recurring threat.

Is it a risk worth taking?

For conservative income stock investors seeking exposure to the oil & gas sector, Energean’s likely a bad fit. There’s no denying the cash-backed 10.3% dividend yield is exceptionally compelling, but it’s also genuinely risky.

If production is forced to shut down again for a prolonged period, future cash flows could disappoint, risking a rapid and substantial dividend cut in the worst-case scenario.

Having said that, if the war comes to an end, the evaporation of geopolitical uncertainty could trigger a sharp upward correction in Energean’s share price, closing the window of opportunity to lock in a double-digit payout. This is a classic high-risk, high-reward scenario. So for investors with the stomach for volatility, Energean could indeed be an income stock worth investigating further.