Providence Resources receives approval to convert Avalon prospect into full exploration license
Irish based oil and gas exploration company Providence Resources has received government approval to convert option licence 16/27 to a Frontier Exploration Licence (FEL).
The acreage involved is in the southern Porcupine Basin offshore Ireland, and the primary target at present is the undrilled Avalon prospect.
The licence is operated by Total, which has a 50pc interest.
Total has also agreed to pay 60pc of a well on the licence, up to a cost cap of $42m (€37m).
Providence has a 40pc share in the licence.
"We are very pleased to confirm approval from the Minister to progress the Avalon licensing option to frontier exploration licence status," Dr John O’Sullivan, technical director at Providence, said.
"Avalon is a very large and exciting prospect, which lies adjacent to Dunquin North, and the joint venture partners look forward to progressing it further under the operatorship of Total."