(Sharecast News) - Ireland-based energy company Providence Resources updated the market on Frontier Exploration Licence 2/19 on Thursday, which is located in the southern Porcupine Basin, offshore Ireland, and contains the undrilled Paleocene 'Avalon' exploration prospect.
The AIM-traded firm said the licence lies adjacent to FEL3/04, in which it also has an interest.
It explained that, following a decision by Total E&P Ireland - a wholly owned subsidiary of Total - to withdraw from FEL 2/19, it could confirm that the Minister of State at the Department of Communications, Climate Action and Environment has approved the assignment of Total's 50% equity to Providence and Sosina, as well as the transfer of operatorship to Providence.
As a result, the revised equity in FEL 2/19 was now Providence as the operator with 80%, and Sosina Exploration at 20%.
"We are obviously sad to see Total withdraw from the Irish sector in general and Avalon specifically as they have been an excellent partner over the past few years," said chief executive officer Tony O'Reilly.
"Total did some great technical work as operator of FEL 2/19 where the joint venture recently acquired new 3D seismic data.
"Providence and Sosina will now continue with the evaluation of this data in conjunction with a new farm-out process to bring in a suitable industry partner to assist in a future drill decision for the Avalon prospect."
At 1600 GMT, shares in Providence were down 9.73% at 3.02p.
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