Repsol secures 25pc stake in Providence's prospect
Irish oil and gas exploration firm Providence Resources has confirmed that Spanish group Repsol has acquired a 25pc stake in its Dunquin prospect, located 200km off the southwest coast.
Repsol secured its holding from other existing partners in the project -- ExxonMobil and Italian group Eni. The deal leaves each of those two companies with a 27.5pc stake. Providence retains 16pc, while UK-based Sosina has 4pc. Dunquin extends over five blocks in the Atlantic's South Porcupine Basin. Seismic data secured by the project partners during a major survey in 2006 has already indicated the potential presence of significant oil and gas targets.
Providence chief executive Tony O'Reilly has said there could be the equivalent of as much as 600 million barrels of oil at the site. ExxonMobil is the operator of the prospect and the partners have previously agreed to sink an initial well at a site in the licence area.
Last year, they undertook a survey to determine where a rig to drill that well might be located. It is expected that the well will be drilled either next year or in 2013.
The costs of such an undertaking are substantial, with Davy Stockbrokers pointing out that deep water wells typically cost in the region of $150m (€110m) to develop.