Providence enters exclusive option deal for Celtic Sea site
Providence Resources, the Irish-based oil and gas exploration company, has announced that it has entered into an exclusive option agreement with PSE Kinsale Energy.
Providence will take part in the agreement, which is over the southern portion of Offshore Petroleum Lease 1 (OPL1), through its wholly-owned subsidiary, Exola.
OPL1 is immediately adjacent to the Barryroe oil field in the north Celtic Sea Basin.
Under the terms of the option Exola will have the right to earn a 60pc working interest in the southern portion of OPL1. Providence has clarified that the option area does not cover the northern portion of OPL1 which contains the producing Kinsale gas field.
The Option is exercisable for a period of three years and is at the sole discretion of Exola, with any future assignment of equity in respect of the option area, being subject to the approval of the Minister for Communications, Energy and Natural Resources. Speaking about the announcement, the chief executive of Providence, Tony O'Reilly, said: "We are very pleased to have agreed this option to acquire a 60pc interest over a portion of OPL1.
"This represents a unique opportunity to test a potential eastern extension of the Barryroe oil field," he said.