Offshore staff
DUBLIN, Ireland -- A farm-out agreement was signed between Providence Resources Plc. and Challenger Minerals Inc. whereby CMI gets 20% interest in Celtic Sea blocks 03/8 and 03/1 off the south coast of Ireland.
Pending government approval, CMI will pay a share of 2006 seismic program costs and its share of all future drilling and development costs. Providence retains 75% and Midmar Energy Ltd. retains 5%. Under the agreement, until Oct. 31, 2006, CMI has an option to farm-in to an additional 20% stake in these interests, on the same terms.
Celtic Sea blocks 03/8 and 03/1 contain the Blackrock, Ardmore, Helvick, Hook Head, and Dunmore (block 50/6 & 7) discoveries, and the Glandore prospect.
"A great deal of work has been carried out on these assets over the past two years and the involvement of CMI validates our view of the real development potential of a number of the assets in this area," said Tony O'Reilly Jr., Providence CEO. "After we complete our upcoming seismic program, which is planned to commence in the very near future, the parties will then decide on the next steps for future drilling and development."
"We are working in conjunction with Providence to assess multiple development opportunities at a time of robust commodity prices," said Chuck Hauf, president, CMI. "The completion of the seismic survey is a necessary step in the final evaluation process before we can commence appraisal drilling."
9/7/06
