Providence Resources Boosts Irish License Stake With Exxon Mobil Exit
August 08 2016 - 3:27AM
Dow Jones News
By Alex MacDonald
LONDON--Ireland-based oil and gas explorer Providence Resources
PLC (PZQA.DB) said Monday it has increased its stake in the
Frontier Exploration Licence 3/04 in the offshore southern
Porcupine Basin of Ireland alongside other partners after Exxon
Mobil Corp. (XOM) elected to withdraw from the license.
Providence Resources boosted its stake to 26.846% from 16% in
the license while Sosina Exploration Ltd. boosted its stake to
2.684% from 2%, Repsol S.A. (REPYY) boosted its stake to 33.557%
from 25% and Italy's Eni S.p.A. (E) increased its holding to
36.913% from 27.5%. Eni has also become the license operator
following Exxon's withdrawal.
Exxon previously had a 25.5% stake in the license.
The license was originally awarded to Providence in 2004, which
at the time had an 80% stake while partner Sosina had a 20% stake.
The licence lies in about 200 kilometers off the south-west coast
of Ireland and at a water depth of 1,500 meters.
In 2006, Providence agreed to a farm-in deal with Exxon Mobil,
whereby the U.S. oil major assumed an 80% stake in return for a
pre-agreed investment program. This transaction reduced
Providence's equity stake to 16% and Sosina's to 4%.
Exxon and Sosina subsequently sold stakes in the license to Eni
and Repsol in 2011 and 2013, such that the licence ownership was
redistributed to the pre-Exxon exit level.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
August 08, 2016 03:12 ET (07:12 GMT)
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