Providence Resources Boosts Irish License Stake With Exxon Mobil Exit

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 [e-mail]

(END) Dow Jones Newswires

August 08, 2016 03:12 ET (07:12 GMT)

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