The deal remains subject to certain conditions, notably the farminee raising the required level of financing.
Providence has an 80% interest in Barryroe in licenses SEL 1/11 and LO 12/4 via its subsidiary EXOLA. Lansdowne Oil and Gas holds the remaining 20%.
In a separate development, Providence has acquired the entire share capital of Chrysaor Exploration & Production Ireland Ltd. (CEPIL) fromChrysaor Holdings.
CEPIL has a 26% equity stake in the Spanish Point gas/condensate field in Irish offshore licenses FEL 2/04, along with 26% in FEL 4/08 and FEL 1/14, following a farm-out agreement with Providence in 2008. They cover a total area of around 2,000 sq km (772 sq mi), 175 km (109 mi) off Ireland’s west coast, in water depths of roughly 400 m (1,312 ft).
According to Providence, which has a 32% share of the concessions, most of the acreage is covered by modern, high-quality 3D seismic.
The company has agreed to pay Chrysaor a contingent success fee of $5 million if a final investment decision is taken forSpanish Point. In addition, Chrysaor CNS will take a 15% interest in FEL 1/14, subject to Irish Ministerial approval. Sosian Exploration is the other existing partner.
Providence adds that it has received a number of third-party expressions of interest in the area.
An appraisal well is due to be drilled this summer on Spanish Point.