Tamboran Resources has entered into a joint venture with energy company, Santos.
Santos will acquire a 14% shareholding in Tamboran. It will invest up to €8m in the Tamboran's operations.
Tamboran holds a licence option for shale gas extraction in Leitrim and Fermanagh.
An independent report by MHA Consulting indicates that the area contains 3.2 trillion cubic feet of natural gas.
However, the controversial practice of fracking is under review in Ireland until the EPA has reported on it.
The UK government is expected to give the green light today to a company to resume fracking in Lancashire in England's northwest.
Cuadrilla had to stop test-drilling in 2011 after fracking caused two minor earthquakes near Blackpool.
