Larne Oil Acquires 50% Interest in Onshore, Offshore Licences in Ireland

Despite the recent announcement of a tax raise on offshore oil and gas production, Ireland could soon increase onshore and offshore output as consequence of the exploration agreement signed by Larne Oil and Gas with InfraStrata, Brigantes and Terrain. The agreement refers to onshore Northern Ireland licence PL1/10 and adjacent offshore licence P2123. 

‘Under the terms of the Agreement, Larne has purchased an exclusive option to farm in to both licences. If the option is exercised Larne will be credited with the option price and will then fund a disproportionate share of the forthcoming costs for the proposed Woodburn Forest-1 exploration well in licence PL1/10 to earn a 50% interest in the licence,’ reads a note released on Friday.

As a consequence of the agreement, InfraStrata would remain the operator of the licences with 20.83% interest. Larne would be the main stakeholder with a 50.00% interest, while the remaining shares would be held by Brigantes (16.67%) and Terrain (12.50%). 

“We are very pleased to welcome Larne to the joint venture as we enter the next very exciting phase of exploration in the Larne-Lough Neagh Basin of Northern Ireland. Work on the necessary consents is progressing with a view to drilling the well before the calendar year end. Larne working together with Ardent brings to the project many years of oil and gas investment and technical experience in the U.S., the North Sea and Europe together with a strong investment base,” Andrew Hindle, CEO of InfraStrata commented. 

Last June, the Irish government announced its intention to raise the maximum amount of tax levied on offshore production from 40% to 55%.

Earlier this year, Australia’s Woodside renewed its commitment for exploration activities in Ireland.