LONDON (Alliance News) - Irish oil and gas company Providence Resources PLC on Tuesday said it has started the process of divesting its interests in the FEL2/04 and FEL4/08 licences in the Spanish Point area of the northern Porcupine Basin, offshore Ireland.
Providence said the formal process of divesting its interests in the licence will start at Atlantic Ireland Conference in Dublin on Tuesday and will focus on selling a 32% non-operated interest, leaving Providence with a 26% interest in the licences.
Due to delays on the appraisal programme for the Spanish Point area, the operator of the project, Capricorn Ireland Ltd, is now planning to start work on drilling in 2017. Capricorn is a joint venture between Cairn Energy PLC and Sosina Exploration Ltd.
"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," said Providence Technical Director John O'Sullivan.
Providence shares were down 13% to 20.80 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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