LONDON (Alliance News) - Irish oil and gas company Providence Resources PLC on Thursday said its Exola Ltd subsidiary has signed an exclusive option agreement with PSE Kinsale Energy Ltd covering the southern part of the OPL 1 licence.
The OPL 1 licence is located immediately adjacent to the Barryroe oil field that Providence is working in the north Celtic Sea basin, which is off the south coast of Ireland.
Under terms of the agreement, Exola will hold the right to earn a 60% working interest in the southern portion of the licence through covering the funding and drilling of an exploration well in the area to evaluate the resource potential.
The option is exercisable for three years and at the sole discretion of Exola.
"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," said Providence Chief Executive Tony O'Reilly.
Shares in Providence were untraded early Thursday at 16.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
