(Europe) - Dublin-based energy explorer Providence Resources Plc has signed an agreement with ExxonMobil Corp. to drill for gas off Ireland's west coast.
The joint venture agreement covers the Dunquin prospect, located 120 mi southwest of Kerry in the Porcupine Basin.
The prospect lies in 16,00 m of water and the target at approximately 16,000 TVDSS.
Under the terms of the deal, ExxonMobil will carry out a "significant" exploration work program on Dunquin in exchange for an 80% stake, while Providence retains a 16% share.
Sosina Exploration, Providence's partner, holds the remaining 4%.
Providence was granted the 80% interest in the Dunquin license - its estimated recoverable resource potential is 12 tcf of gas and as much as 1.8 Bbbl of oil - with its then 20% partner Sosina in November 2004.
It is estimated that a well on Dunquin could cost about $50 million to drill.