Providence Resources has agreed an option with Petronas subsidiary PSE Kinsale Energy to take a stake in the southern portion of Offshore Petroleum Lease 1 (OPL 1) adjacent to the Barryroe oil field in the North Celtic Sea Basin.
Under the terms of the option, Ireland-based Providence, through its subsidiary Exola, will have the right to earn a 60% working interest in the southern portion of OPL 1, below 4000ft true vertical depth subsea, through the 100% funding and drilling of an exploration well in the option area to evaluate the resource potential of the basal Wealden reservoir interval.
The option does not cover the northern portion of OPL 1 which contains the producing Kinsale gas field and related infrastructure and is owned and operated by PSE Kinsale Energy.
The Option is exercisable for a period of 3 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.
Commenting on the announcement, Tony O’Reilly, Chief Executive of Providence said: “We are very pleased to have agreed this option to acquire a 60% interest over a portion of OPL1. This represents a unique opportunity to test a potential eastern extension of the Barryroe oil field.”