Providence Resources P.l.c., the London (AIM) and Dublin (ESM) listed oil and gas exploration and production company, confirms that it has signed an agreement with San Leon Energy Plc which will see Providence increase its working interest in Standard Exploration Licence 1/11 from 50% to 80%.
Under the terms of the agreement, Providence will assume San Leon‟s 30% working interest in the Licence, and in exchange, San Leon will receive a 4.5% NPI (Net Profit Interest) in the Licence. Subject to Irish governmental approval, Providence will have an 80% interest in the Licence and will continue as operator. Lansdowne Oil & Gas Plc (“Lansdowne”) will retain a 20% interest in the Licence.
Commenting on the increase in equity, Tony O‟Reilly, CEO said:
“This transaction makes perfect strategic sense for both companies, allowing each to focus on their respective core areas. Providence remains firmly focused on its Irish portfolio, with the Barryroe appraisal well being the first well of its multi-year, multi-basin drilling programme. We look forward to updating shareholders on the progress of the drilling at Barryroe over the coming weeks.”
[mappress] Subsea World News Staff , December 23, 2011; Image: Providence Resources