Providence Increases Stake in Singleton Oil Field
Providence Resources has confirmed that it has exchanged contracts with Star Energy Group for the purchase of Star's 79.125% interest in the Singleton oil field, onshore UK. As a result, Providence's beneficial interest in the Singleton Oil Field increases from 20% to 99.125%, with a corresponding increase in daily production from approx. 120 boe/d to 600 boe/d.
Because of the company's previously announced production in the Gulf of Mexico, its production should increase six fold this year to 720 boe/d.
Today's announcement follows last week's news confirming a significant oil discovery offshore Ireland. Under the terms of the Singleton deal, Providence will derive the additional proportional revenue with effect from October 1, 2007. The remaining 0.875% of the field is owned by Noble Resources.
"We are delighted to conclude the exchange of contracts for the acquisition of Star's interest in the Singleton Oil Field, especially coming so soon after our excellent news from Hook Head, offshore Ireland," said Tony O'Reilly Jr., Chief Executive of Providence Resources. "Singleton is a significant deal for Providence as this transaction, when combined with our recently announced High Island A268 production in the Gulf of Mexico, takes our projected annualized daily production to over 720 boe/d.
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Company: Star Energy more info
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