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LONDON (Alliance News) - AIM-listed Lansdowne Oil & Gas PLC Thursday said the Irish government has given its consent to the company's November farm-in agreement with PSE Kinsale Energy Ltd.
Through the 80% interest and as the operator of SEL 4/07 offshore Ireland, Kinsale Energy will fund all of the costs of drilling a well on the Midleton prospect, Lansdowne said.
If the well is tested, Lansdowne Oil & Gas said, Kinsale Energy also will fund Lansdowne's share of the testing costs, up to USD2.5 million net.
Kinsale Energy has begun work on well planning, Lansdowne said.
"Much of the focus on Lansdowne's Celtic Sea assets in the last couple of years has been on the oil in Barryroe and whilst this remains the core of our portfolio, we continue to see great potential in searching for more gas in the basin," Lansdowne Chief Executive Steve Boldy said in a statement.
"Gas prices remain robust and security of supply continues to be a concern, so any additional volumes we can discover and bring on-stream will be very valuable," Boldy said.
Lansdowne Oil & Gas shares were up 12% at 7.00 pence on Thursday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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