Providence to Divest Stake in Spanish Point Area Offshore Ireland
Providence Resources announced Tuesday that it will divest a 32 percent interest in the Spanish Point Area, in the northern porcupine basin offshore Ireland.
The Spanish Point Area includes Frontier Exploration License (FEL) 2/04 and 4/08, which Providence holds a 58 percent equity interest in. Following the completion of the divestment, Providence will retain a 26 percent interest in the license areas.
John O’Sullivan, technical director of Providence, commented in a company statement:
“Following the recent closure of the 2015 Irish Atlantic Margin bidding round, which attracted record industry interest, this divestment process represents an excellent opportunity for a third party to acquire a material, non-operated equity stake in a large Irish offshore project with near term appraisal drilling, combined with further appraisal and exploration upside. The proposed drilling program is being managed by established operator Cairn Energy and is expected to take advantage of the recent fall in global offshore drilling and service costs.”
Following previous delays to the Spanish Point appraisal program, Cairn now plans to commence operations for drilling during 2017, subject to governmental approval.
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