Exploration group Providence Resources has signed two farm-out agreements on its Celtic Sea interests, held under Standard Exploration Licence 2/07.
Under the terms of the agreement, Providence has agreed, subject to approval from the Irish Government, to farm-out 15% of the licence to Dyas BV, a Dutch oil and gas company.
Providence has also agreed to farm-out 10% of licence 2/07 to Atlantic Petroleum Ireland, a subsidiary of P/F Atlantic Petroleum, a Faroe Island based exploration company.
The Faroe Islands are situated in the North Atlantic 430 km south-east of Iceland.
This is the first time that both companies have invested in offshore Ireland and drilling is expected to commence in summer.
The Celtic Sea licence 2/07 contains Ardmore gas discovery, Helvick oil field, Hook Head oil and gas discovery, and Dunmore oil discovery.
The equity stake of Providence will fall to 55% on approval of the deal.
The company said yesterday it was awarded two petroleum exploration licences to search for oil in St George's Channel and the Celtic Sea.
This came only a few days after Providence was awarded two exploration licences by the British authorities.
