Star Energy to acquire Marathon Oil Ireland for $180 million
The companies expect to close the transaction, subject to completion of the necessary administrative processes with Irish authorities, early in the first quarter of 2009. This agreement does not include Marathon's 18.5% interest in the Corrib natural gas development. Marathon Oil Ireland's assets include a 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 is tied back to Kinsale, and a 100% interest in the company's gas storage business with current capacity of seven billion cubic feet. Current net production from these operations is approximately 36 million cubic feet of natural gas per day. David Roberts Jr, Marathon's executive vice president of upstream operations, said: "With the sale of Marathon Oil Ireland, our global asset portfolio review and the resulting sale of non-core assets has generated nearly $1.2 billion in cash pretax. We anticipate that this program will generate $2 billion to $4 billion in cash pretax by mid-year 2009."