Providence ups stake in Atlantic oil prospect
Providence Resources has increased its stake in an oil prospect off the South West Coast after Exxon Mobil pulled out of the field.
Providence will now own just over a quarter of the field, subject to ratification by Government of its acquisition of a 4pc stake in the field from Atlantic Resources last year.
Italian oil and gas company Eni has taken over the operation of the field from Exxon Mobil, Providence said. The Irish company's shares lost almost 9pc yesterday.
Eni will own almost 37pc of the asset and Repsol just over 33.5pc, after Exxon's interest in the field was distributed to the remaining partners on a pro-rata basis. Providence does not have to pay for the increase in its stake.
An exploration well was drilled at a section of the field known as Dunquin North in 2013 (pictured), and indicated the presence of a "residual oil column".
Providence's shares were suspended in April after an adverse legal ruling, but the company has a platform to move forward after raising around $70m of equity capital. The share suspension was lifted in June.
It continues to look for a partner to help get oil out of the ground at the Barryroe field off the Cork coast - seen as Providence's flagship asset.