Providence refines Eirgas ownership

PROVIDENCE Resources is planning to dilute its 100% ownership of gas storage subsidiary company Eirgas – probably through a farm-out agreement – some time next year.

Speaking after the oil and gas exploration company’s AGM in Dublin, yesterday, chief executive Tony O’Reilly Jnr said that the ownership structure of both special purpose vehicles (SPVs) Eirgas and Exola “could be refined in the next year or so”.

Currently, Providence owns both companies outright. Exola was established earlier this year to sniff out opportunities relating to so-called “heavy” or “unconventional” oil off the Irish coast (basically, crude oil which doesn’t flow as freely as lighter oil due to its density), with Eirgas set up to further Providence’s interests in gas storage. The latter, earlier this week, pulled out of its proposed acquisition of a 40% stake in the Kinsale Head Area gas field/storage assets.