Oil and gas exploration company Providence Resources has entered into an exclusive option with global energy provider TOTAL, in relation to a Frontier Exploration Licence that lies at c. 2,250m of water depth in the southern Porcupine Basin, about 220km off the south west coast of Ireland.
The licence is operated by Providence on behalf of its partners Capricorn and Sosina.
The FEL contains the Paleocene "Druid", Lower Cretaceous "Drombeg" and Jurassic "Diablo" exploration prospects.
Under the terms of the agreement, TOTAL has the option to farm-in to a 35% working interest in the FEL subject to the payment of $27m (€23.96m) – $21.6m to Providence and $5.4m to Sosina.
Separately, Providence and Sosina have signed a farm-in agreement with TOTAL to give the energy company a 50% working interest in a licensing option lying in c. 1,300m of water in the southern Porcupine Basin around 150km off the south west coast of Ireland.
Shares in the company moved sharply higher in Dublin trade.
