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LONDON (Alliance News) - Providence Resources PLC on Monday said it has signed a deal to acquire Chrysaor Exploration & Production Ltd from Chrysaor Holdings Ltd and said it has signed a deal with a potential farm-in partner for the Barryroe project in Ireland.
Chrysaor E&P holds a 26% equity interest in the Spanish Point field in Ireland, along with interests in the FEL 4/08 and FEL 1/14 licences in the field. All are located within the northern Porcupine Basin, offshore Ireland.
Providence has acquired the share capital of Chrysaor for a nominal USD1 and has agreed to make a USD5 million contingent success fee payment to the parent company in the event a final investment decision is made on the Spanish Point project.
The deal increases Providence's stake in the licences to 58%, with Capricorn Ireland Ltd holding a 38% stake and Sosina Exploration holding a 4% stake. Providence is planning to drill an appraisal well in the Spanish Point area in the summer.
Elsewhere, Providence said it has reached a deal on commercial terms with a proposed, unnamed farm-in partner for the Barryroe project. It said the deal is subject to closing conditions and on the potential farm-in partner raising the necessary funds to participate in the project. Providence holds an 80% interest in the project, with Lansdowne Oil & Gas PLC owning the other 20%.
Providence shares were up 0.9% to 56.00 pence on Monday morning, while Lansdowne shares were up 4.0% to 7.15 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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