Chrysaor commits to Spanish Point wells

Chrysaor Resources plans to exercise an option to double its interests from 30 to 60% in the Spanish Point Area in the Porcupine basin off western Ireland.

Offshore staff

DUBLIN, Ireland -- Chrysaor Resources plans to exercise an option to double its interests from 30 to 60% in the Spanish Point Area in the Porcupine basin off western Ireland.

The equity is in the Frontier Exploration License 2/04 and adjacent license FEL 4/08. The permits are 200 km (125 mi) offshore in water depths of around 400 m (1,310 ft). Providence operates both licenses, in partnership with Chrysaor and Sosina Exploration.

Chrysaor’s decision is in line with the terms of its farm-in agreement. In exchange for the extra equity, it has agreed to drill up to two appraisal wells on the Spanish Point discovery, and will assume the drilling management role for this program.

As a result, Providence’s equity will dip from 56% to 32%, and Sosina’s from 14% to 8%. There will also be a cap on these companies’ financial exposure to the drilling.

The partnership has identified a primary appraisal well location and will start planning for this program, and sourcing a rig, which will start drilling in 2012.

03/14/2011

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