Exploration company Providence Resources has signed a deal which covers its Spanish Point oil and gas discovery off the West coast of Ireland.
Under the terms, privately-owned exploration company Chrysaor Holdings will conduct 'significant' appraisal work on the prospect in return for a minimum 30% stake. It will have the option of earnings up to 70% if two wells are subsequently drilled.
Providence currently holds 80% of Spanish Point, while its partner Sosina Exploration has 20%. The deal is subject to Irish Government approval.
Chrysaor has initially committed to fund the budgeted cost of a 3-D seismic programme at the project.
