LONDON (Alliance News) - Providence Resources PLC shares rose on Monday after signing a strategic and incentivised exploration collaboration agreement with US oilfield services company Schlumberger.
Providence shares were up 11% to 15.23 pence per share on Monday morning.
Under the agreement, Schlumberger will provide Providence's technical team with "state of the art" technology to evaluate the southern Porcupine and Goban Spur Basins offshore Ireland.
"Having recently acquired modern high quality 2D and 3D seismic data over our primary prospects, we now plan to capitalise on our unique proprietary database by using Schlumberger's best in class multi-disciplinary technologies in order to leverage in a deep-water operator," said Providence.
"The main themes to be addressed through the collaboration agreement with Schlumberger are the burial and hydrocarbon expulsion history of the southern Porcupine and Goban Spur Basins, together with a regional top seal capacity analysis," it added.
This joint study has been primarily designed to further de-risk the Dunquin South, Drombeg, Druid and Newgrange exploration prospects, together with any new acreage acquired in the area.
Providence is also planning on farming-down those exploration prospects, and under the deal Providence will have access to Schlumberger's farm-out data room processes in order to complete a farm-out. That process will begin in the first quarter of 2016.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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