Providence resists early joint-venture approaches for new green energy division

Providence Resources has already been approached by companies interested in coming on board as part of a joint-venture agreement around its newly-formed green energy side project.

Providence resists early joint-venture approaches for new green energy division

Providence Resources has already been approached by companies interested in coming on board as part of a joint-venture agreement around its newly-formed green energy side project.

However, it is understood the Tony O'Reilly Jr-headed exploration company is opting to hold off on such a deal given the new division is at such an early stage. In time, Providence could seek a separate IPO for the newly-registered Providence Renewables DAC or sell the business division.

The new company - described by Providence as an adjunct to its chief business of oil and gas exploration - will partially focus on geothermal energy projects and could initially look at ways to transform boiling water underneath the sea bed at one of its offshore Irish licences into renewable electricity. Such a project would provide the 'holy trinity' of 'clean, green and unseen' for an energy provider.

Interest has been shown by a mix of service equipment, engineering and power generation companies.

Meanwhile, results of technical work at British explorer Europa Oil and Gas' flagship Irish asset, the Inishkea gas project adjacent to the Corrib field, show gross gas resources of 1.5 trillion cubic feet and a 33% chance of success.

Europa last month tentatively agreed terms with an unnamed major international oil and gas company to develop a significant portion of its Irish offshore licences, which hold a total of five billion barrels of oil and 2.5 trillion cubic feet of gas.

"Subject to successful completion, Europa will have a clear line of sight to the drilling of a series of wells offshore Ireland, each of which has company-making potential," said CEO Hugh Mackay.

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