Business Irish

Friday 22 September 2017

Goldman Sachs takes larger holding in Providence

Goldman now holds 3.07pc in Providence with over 18 million €0.10 cent shares.
Goldman now holds 3.07pc in Providence with over 18 million €0.10 cent shares.

Sean Duffy

Global financial giant Goldman Sachs has acquired a stake in Irish oil and gas exploration company Providence Resources which takes its holding in the company above 3pc.

Goldman now holds 3.07pc in Providence with over 18 million €0.10 cent shares.

The global financiers' stake is still well below larger shareholders such as life-assurance company Prudential M&G and Capital Group, which hold 14.67pc and 9.7pc respectively.

Last week, Providence announced it had reached agreement with Cairn Energy that will see Cairn take a 30pc interest in Providence's frontier exploration licence.

Cairn will pay $2.8m (€2.63m) upfront and 45pc of the costs of drilling Providence's 53/6-A exploration, up to a cap of $42m (€39.5m).

"The addition of Cairn brings additional technical capabili ties to the JV partnership, whilst providing Providence with additional financial and operational flexibility," Providence ceo Tony O' Reilly said.

Providence said recently that it had seen a rise in interest from larger oil companies in the Irish oil sector.

Providence shares were up 6.6pc to 21 cent each yesterday after the news.

Indo Business

Also in Business