Providence Resources increases stake in exploration licence

Development follows exit of ExxonMobil from process

Providence Resources chief executive Tony O’Reilly. Photograph: Cyril Byrne

Providence Resources chief executive Tony O’Reilly. Photograph: Cyril Byrne

 

Oil and gas explorer Providence Resources has increased its stake in an exploration licence off the southwest coast.

The company announced details in relation to the frontier exploration licence 3/04 in the offshore southern Porcupine Basin of Ireland on Monday.

The increased stake comes as ExxonMobil exited the process.

The basin lies in about 1,500m of water in the southern Porcupine Basin and is about 170km off the Republic’s southwest coast.

The licence contains the 2013-drilled Dunquin North carbonate build-up, which hosts a residual oil column, together with the undrilled Dunquin South exploration prospect.

Pro-rata distribution

Following ExxonMobil’s election to withdraw from the process, the remaining partners have increased their equity interests in the licence through a pro-rata distribution of ExxonMobil’s equity interest with Eni assuming the role of operator.

Accordingly, the revised equity interests are now Eni Ireland (36.913 per cent), Repsol Exploracion Irlanda (33.557 per cent), Providence Resources (26.846 per cent interest) and Sosina Exploration (2.684 per cent).