Energy Minister Eamon Ryan announced today that, following a detailed evaluation by his Department of the applications received under the Porcupine Licensing Round, four Frontier Exploration Licences have been awarded.

Licences over areas totalling 4,963 square kilometres are being offered to the following groups; ExxonMobil, Providence Resources and Sosina Exploration - two licences; Island Oil and Gas and Supernova Ireland Resources BV and Providence Resources, Sosina Exploration and Challenger Minerals.

In awarding the licences, Minister Ryan said that he was encouraged by the keen level of interest of the companies involved, all of whom are currently engaged in existing exploration licences.

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He said: "I hope the licences awarded under the Round will lead to the discovery and development of new hydrocarbon resources which will reduce Ireland's long-term dependence on energy imports. Currently 90% of our energy comes from imported fossil fuels. We need to reduce this level of exposure."

The award of these licences is indicative of the recent upswing in the level of investment in exploration of the Irish offshore, which is evidenced in the number of exploration authorisations and a corresponding increase in the level of drilling activity.

Minister Ryan confirmed that profits from these licences are subject to the revised licensing terms he announced last year. Among these terms was a new profit resource rent tax, which provides for a tax take of up to 40% for more profitable discoveries (an increase of 15% from previous rates).

"I am pleased to say that Irish people will benefit from the development of our own indigenous resources", the Minister said.

(VB/JM)