HOUSTON -- PSE Ireland has acquired Marathon Oil Ireland (MOIL). The transaction, valued at $180 million, has an effective date of Dec. 31, 2007. The sale does not include Marathon's 18.5% interest in the Corrib natural gas development.
Under the terms of the sale, PSE Ireland acquires Marathon's 100%-operated interest in the Kinsale Head Area comprising Kinsale Head, South West Kinsale, and the Ballycotton gas fields, as well as an 86.5% interest in the gas producing Seven Heads field which ties back to Kinsale, and a 100% interest in the company's gas storage business, which has a current capacity of 7 bcf. As part of the transaction, PSE Ireland retains the 61 MOIL employees in Ireland.
Net production from these operations averaged approximately 30 MMcf/d of natural gas for 1Q 2009. Marathon's total net risked resource associated with these assets as of year-end 2007 was 62 bcf of which 46.2 bcf were net proved reserves.