Providence Exercises Option to Aquire 40% of Kinsale Head Assets from
Petronas
(Thomson Reuters ONE) - PROVIDENCE EXERCISES OPTION TO ACQUIRE 40% OF KINSALE HEAD ASSETS FROM PETRONAS * KINSALE HEAD ASSETS INCLUDE IRELAND'S SOLE PRODUCING GAS FIELD COMPLEX AND OPERATING GAS STORAGE FACILITYProvidence Resources P.l.c. ('Providence'), the AIM and IEX listedexploration and production company, is pleased to announce that,further to its announcement of 16th June 2009, its wholly ownedsubsidiary, EIRGAS Limited ('EIRGAS'), has exercised its option (the"Option") to acquire a 40% interest in the 100% operated Kinsale HeadArea comprising the Kinsale Head, South West Kinsale and Ballycottongas fields from Labuan Energy Corporation Limited, a wholly ownedsubsidiary of PETRONAS International Corporation Ltd. ('PICL'). Aspart of the same transaction, EIRGAS has also exercised the option toacquire a 40% interest in the 86.5% operated adjacent producing SevenHeads gas field ("Seven Heads"). EIRGAS is a special purpose vehicleestablished by Providence to invest in gas production, storage andtrading opportunities offshore Ireland and in the United Kingdom.PICL is a wholly-owned overseas investment arm of Petroliam NasionalBerhad ('PETRONAS'), the national oil company of Malaysia.Under the terms of the Option Agreement, which was originally enteredinto on June 15th 2009, EIRGAS will purchase its stakes in theKinsale Head Area assets on the same pro-rata terms by which PETRONASacquired its stake from Marathon Oil Corporation in April 2009. Thattransaction had a total value of US$ 180 million, with an effectivedate of 1st January 2008. In conjunction with the formalnotification of its exercise of the Option, Providence has made aninitial cash payment of $3.8 million to PETRONAS with the balance dueat Closing.The Closing of this transaction is subject to Irish regulatoryapproval and is expected to be completed by no later than the end ofQ1 2010. It is planned that the financing for the balance of thetransaction will be met through existing cash resources and bankingfacilities.Commenting, Mr Tony O'Reilly, Chief Executive of Providence, said:"This transaction allows Providence to capitalise on our extensiveoperational experience offshore Ireland in combination with PETRONAS'proven track record in gas production, storage and trading. Uponcompletion, not only will Providence's attributable daily productiondouble to over 4,000 BOEPD, but we will also gain exposure toexisting and new gas storage and trading opportunities, which we seeas a huge potential future growth area for the Company. Additionally,the deal also provides EIRGAS with an opportunity to potentiallymonetise gas from some of Providence's adjacent gas discoveries inthe Celtic Sea, as well as from third party fields."Contacts:Providence Resources Plc Tel: +353 1 2194074Tony O'Reilly, Chief ExecutivePowerscourt Tel: +44 207 250 1446Rory Godson/Elizabeth RousMurray Consultants Tel:+353 1 498 0300Pauline McAlesterCenkos Securities Plc Tel:+44 207 387 8900Joe Nally/ Nick WellsDavy Tel: + 353 1 679 6363Eugenée Mulhern/ Stephen BarryEXPLANATORY NOTESAbout EIRGAS LimitedEIRGAS Limited is a special purpose vehicle established to invest ingas production and gas storage opportunities offshore Ireland and theUnited Kingdom. EIRGAS is owned 100% by Providence.About PETRONASPETRONAS, wholly-owned by the Malaysian government, is afully-integrated oil and gas corporation and is ranked among FORTUNEGlobal 500's largest corporations in the world.About the TransactionOn June 16th, 2009 Providence announced that its wholly ownedsubsidiary EIRGAS Limited had secured a 3 month Option to acquire 40%of the Kinsale Head assets from PETRONAS, which PETRONAS had in turnacquired from Marathon on April 17th, 2009 for a gross considerationof US $180 million (with an effective date of January 1st, 2008). Theassets acquired comprise Kinsale Head, South West Kinsale and theBallycotton gas fields, an 86.5 % interest in the gas producing SevenHeads field, which is tied back to Kinsale, and a 100 % interest inthe company's gas storage and trading business with current capacityof 8 BCF. Net production from these operations averaged approximately30 MMCFGD of natural gas for the first quarter of 2009. Marathon'stotal net risked resource associated with these assets as of the endof 2007 was 62 BCF, of which 46.2 BCF, or 7.7 million BOE, were netproved reserves. 3P reserves were stated at 73.6 BCF. In 2008, theKinsale Head Area assets generated revenues of $154.8 million and netprofits of $50.7 million.About ProvidenceProvidence Resources Plc is an independent oil and gas explorationand production company listed on the AIM market in London and onDublin's IEX market. The Company was founded in 1997, but with rootsgoing back to 1981 when it predecessor company, Atlantic ResourcesPlc was formed by a group of investors led by Sir Anthony O'Reilly.Providence's active oil and gas portfolio includes interests inIreland, the United Kingdom, the United States (Gulf of Mexico) andWest Africa (Nigeria). Providence's portfolio is balanced betweenproduction, appraisal and exploration assets, as well as beingdiversified geographically.Further information on Providence and its oil and gas portfolio,including Annual Reports are available from Providence's website atwww.providenceresources.comProvidence - Celtic Sea Area AssetsIn addition to the gas production and storage assets* being acquiredat Kinsale Head, Providence also has an interest in a further 10prospects in the Celtic Sea/NE Celtic Sea region, including a numberof gas discoveries and prospects, as below. Asset Location Operator % TypeKinsale Head * Celtic Sea Kinsale Energy 40.0% Gas ProductionBallycotton * Celtic Sea Kinsale Energy 40.0% Gas ProductionSouth West Gas Storage &Kinsale * Celtic Sea Kinsale Energy 40.0% TradingSeven Heads * Celtic Sea Kinsale Energy 34.6% Gas ProductionHook Head Celtic Sea Providence 72.5% Oil & Gas discoveryDunmore Celtic Sea Providence 72.5% Oil discoveryHelvick Celtic Sea Providence 72.5% Oil & Gas discoveryArdmore Celtic Sea Providence 72.5% Gas discoveryBlackrock Celtic Sea Providence 72.5% Oil discoveryBarryroe Celtic Sea Lansdowne 30.0% Oil & Gas discovery NE Celtic Oil & GasPegasus Sea Providence 100.0% exploration NE Celtic Oil & GasOrpheus Sea Providence 100.0% exploration NE Celtic Oil & GasDionysus Sea Providence 100.0% exploration NE CelticDragon (part) Sea Marathon c. 25.0% Gas developmentAnnouncementIn accordance with the AIM Rules - Guidance for Mining and Oil & GasCompanies, the information contained in this announcement has beenreviewed and approved by John O'Sullivan, Exploration Manager ofProvidence Resources P.l.c.. John O'Sullivan is a Geology graduate ofUniversity College Cork and holds a Masters in Geophysics from TheNational University of Ireland, Galway. John also holds a Masters inTechnology Management from the Smurfit Graduate School of Business atUniversity College Dublin and is presently completing a dissertationleading to a PhD in Geology at Trinity College, Dublin. John is aFellow of the Geological Society and a member of the PetroleumExploration Society of Great Britain. He has 19 years experience inthe oil and gas exploration and production industry and is aqualified person as defined in the guidance note for Mining Oil & GasCompanies, March 2006 of the London Stock Exchange.Glossary of Terms UsedBOE Barrels of Oil Equivalent (1 BOE = 6,000 SCFG)BCF Billion Cubic Feet of GasBOEPD Barrels of Oil Equivalent per DayMCFGD Thousand Cubic Feet of Gas per DayMMCFGD Million Cubic Feet of Gas per DaySPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has beenused in preparing this announcement---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 15.09.2009 - 08:01 Uhr
Sprache: Deutsch
News-ID 5806
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 371 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Providence Exercises Option to Aquire 40% of Kinsale Head Assets from
Petronas"
steht unter der journalistisch-redaktionellen Verantwortung von
Providence Resources plc (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
