Providence Signs Offshore Ireland Farm-out Deals
Providence Resources P.l.c. has signed two farm-out agreements on its Celtic Sea area interests, held under Standard Exploration License 2/07, off the south coast of Ireland. Both farm-outs are subject to approval from the Minister for Communications, Marine and Natural Resources.
The first agreement covers a farm-out of 15% of Celtic Sea Standard Exploration License 2/07 to Dyas BV, a Dutch oil and gas company. Dyas BV is a subsidiary of SHV Holdings NV, a large privately owned Dutch investment holding company.
Providence has also agreed to farm out 10% of Celtic Sea Standard Exploration License 2/07 to Atlantic Petroleum (Ireland) Limited, a subsidiary of P/F Atlantic Petroleum. P/F Atlantic Petroleum is a Faroe Islands-based oil and gas exploration company, listed on both ICEX (Icelandic) & OMX (Copenhagen) stock markets.
This is the first time that both companies have invested in offshore Ireland.
Subject to Irish government approval of these two farm-outs, the equity stake of Providence will reduce to 55% in License 2/07, whilst its most recent farm-in partner, Challenger Minerals (Celtic Sea) Limited, (a subsidiary of GlobalSantaFe Corporation) will retain a 15% interest and Midmar Energy Limited, will retain a 5% stake.
The Celtic Sea License 2/07 contains the following:
- Ardmore gas discovery
- Helvick oil field
- Hook Head oil & gas discovery
- Dunmore oil discovery
Commenting on the farm-out agreements, Tony O'Reilly Jr., Chief Executive of Providence Resources P.l.c., said:
"We are extremely pleased to have both Atlantic Petroleum and Dyas join us in our Celtic Sea program. As we advance towards drilling offshore Ireland later this year, the addition of these two new partners will further strengthen our Celtic Sea License consortium. We are particularly pleased that both these companies have chosen to work with Providence, as they enter the Irish offshore for the first time.
"Having previously announced that we have secured the Petrolia Rig for drilling, and having assembled this license partnership, we can now focus on finalizing drilling plans, with drilling expected to commence this summer. More details on the 2007 drilling program will be announced within the next few months."
J. Hans Tijssen, Managing Director of Dyas BV said:
"Dyas is excited to be working with Providence on the broad array of assets contained within this License. We are impressed with the portfolio of oil and gas prospects contained within the License and look forward to the commencement of a dedicated drilling program later this year."
Wilhelm Petersen, Chief Executive of P/F Atlantic Petroleum added:
"Atlantic looks forward to the drilling program offshore Ireland this summer. This is our first investment offshore Ireland and so we are particularly pleased to be working with a Company with a huge range of experience and expertise in the region."
Providence's active oil and gas portfolio includes interests in Ireland (offshore), the UK (onshore and offshore), the Gulf of Mexico (USA) and West Africa (offshore Nigeria).
Dyas BV is an active investor in oil and gas exploration, development
and production joint ventures, always as a non-operator, with a focus
on onshore the Netherlands and the North Sea. The size of Dyas equity
in joint ventures ranges from 1 - 50%, and is normally between 10 -
20%. Net 2006 developed oil and gas reserves are some 43 million bbl
oil equivalent, split approximately 50/50 in oil and gas, with a
daily production level of 17,500 bbl oil equivalent. The company is a 100% subsidiary of the privately owned SHV Holdings NV.
- Transocean's GlobalSantaFe Merger Proves Positive in Year End Review (Feb 20)
- GlobalSantaFe Updates Customs Investigation (Nov 27)
- Transocean Closes Merger with GlobalSantaFe (Nov 27)
Company: Providence Resources PLC more info
- Providence Expects to Drill Druid Prospect in Summer 2017 (Sep 15)
- Newgrange Prospect Could Hold 13.6 Tcf of Gas (Jul 12)
- Providence Offered LO 16/27 Offshore Ireland (Jun 23)
Company: Midmar Energy more info
- Midmar Divests UK Onshore Producing Assets (Jun 29)
- UK's Mesopotamia Forms First Drilling JV in Iraq Since 2003 (Feb 26)
- Progress Looks Promising on Mesopotamia, Iraq Drilling JV (Jul 23)
Company: Challenger Minerals more info
- Ithaca Preps Stella Appraisal for Drill Stem Test (Mar 29)
- Challenger Minerals Takes Stake in Bentley Field (Mar 05)
- Lundin Strikes O&G at Torphins Prospect (Jul 21)
Company: Atlantic Petroleum more info
- Atlantic Petroleum Production Drops (Jan 06)
- Atlantic Petroleum Continues to Increase Production (Sep 02)
- Atlantic Petroleum more than Doubles Production in July 2015 (Aug 04)
Company: Dyas BV more info
- Ithaca Says Stella Production Facility Undergoing Sea Trials (Jul 22)
- Lundin Finds Gas at Maligan Prospect Offshore East Malaysia (Mar 03)
- Lundin Farms Out Stakes in 3 PSCs Offshore Malaysia to DYAS (Feb 02)