British explorer ABT Oil & Gas is to farm-in to Providence Resources’ Celtic Sea assets by taking a 50% stake in two discoveries.
The legacy assets are the Helvick and Dunmore discoveries in the North Celtic Sea Basin, in which Providence owns 62.5% and 72.5% respectively. The Helvick asset has estimated reserves of 9.4m barrels of oil in place, with the potential for additional volumes. Market sources suggest at least 3m barrels could be recoverable.
ABT — a joint venture between ABTechnology and UK independent explorer, Enegi — is looking to apply technological and development expertise to the two assets.
Depending on Government approval, ABT’s investment will be gradual — an initial 10% stake (on the back of an application to carve out both discoveries from the SEL 2/07 licence) being built upon with two 20% increases on the awards of petroleum leases and development plan approval for the discoveries.
“This farm-in transaction is consistent with our strategy to progress opportunities to a certain stage of definition and then leverage in appropriate partners to advance them towards development and ultimate production,” John O’Sullivan, Providence’s technical director said.
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