Providence and TOTAL reach exploration agreement

Business, Life sciences and energy | Thu 8 Jun | Author – Business & Finance
Tony O'Reilly Providence Resources
Tony O’Reilly, Chief Executive, Providence

Irish-based oil and gas exploration company Providence Resources has announced that it has entered into an exclusive option with TOTAL in relation to a frontier exploration licence that lies in 2,250m of water depth in the southern Porcupine Basin, about 220km off the south-west coast of Ireland.

Under the terms of the option, TOTAL has the option and the right, but not the obligation, to farm-in to a 35% working interest, subject to the payment of $27m to Providence and its partner Sosina Exploration.

TOTAL is a global integrated energy producer and provider is a major player in solar energy with SunPower and Total Solar, employing 98,000 people.

Speaking today, Tony O’Reilly, Chief Executive of Providence, said: “We are delighted to have agreed this exclusive option with one of the world’s leading E&P companies. Should TOTAL subsequently elect to exercise the option and farm-in to FEL 2/14, the JV Partners will have the benefit of being operated by an industry leader in deep-water hydrocarbon exploration and development.”

Providence has a portfolio of appraisal and exploration assets located offshore Ireland and the company has shares quoted on AIM in London and the ESM in Dublin.