Providence Resources announced that its wholly owned subsidiary, EIRGAS Limited ('EIRGAS'), has exercised its option (the 'Option') to acquire a 40% interest in the 100% operated Kinsale Head Area comprising the Kinsale Head, South West Kinsale and Ballycotton gas fields from Labuan Energy Corporation Limited, a wholly owned subsidiary of PETRONAS International Corporation Ltd. ('PICL').
As part of the same transaction, EIRGAS has also exercised the option to acquire a 40% interest in the 86.5% operated adjacent producing Seven Heads gas field ('Seven Heads'). EIRGAS is a special purpose vehicle established by Providence to invest in gas production, storage and trading opportunities offshore Ireland and in the United Kingdom. PICL is a wholly-owned overseas investment arm of Petroliam Nasional Berhad ('PETRONAS'), the national oil company of Malaysia.
Under the terms of the Option Agreement, which was originally entered into on June 15, 2009, EIRGAS will purchase its stakes in the
The Closing of this transaction is subject to Irish regulatory approval and is expected to be completed by no later than the end of Q1 2010. It is planned that the financing for the balance of the transaction will be met through existing cash resources and banking facilities.
Commenting, Tony O'Reilly, Chief Executive of Providence, said, "This transaction allows Providence to capitalize on our extensive
Most Popular Articles
From the Career Center
Jobs that may interest you