Providence Resources: Total Exercises Farm-In Option Over FEL 2/14 License
December 28 2017 - 4:00AM
Dow Jones News
By Ian Walker
Providence Resources PLC (PZQA.DB) said Thursday that Total S.A.
(FP.FR) has exercised its farm-in option for a 35% interest and
operatorship in the Frontier Exploration License 2/14 in the
southern Porcupine Basin, leaving the Irish firm with a 28%
interest.
The Irish-based oil-and-gas exploration company said in June
that it had entered into the option agreement with Total E&P
Ireland B.V., a wholly owned subsidiary of Total S.A. The deal is
conditional upon approval by the Minister of State at the
Department of Communications, Climate Action and Environment.
As announced on June 7, Total has paid $27 million to Providence
and its partner Sosina Exploration Ltd., $21.6 million of which has
been paid to Providence. Capricorn Ireland Ltd., a subsidiary of
Cairn Energy PLC (CNE.LN) has a 30% interest in the license, with
Sosina Exploration owning 14%.
Providence also said that farm-out talks over the Barryroe
Field--Standard Exploration License 1/11--continue and that it has
granted a potential partner a period of exclusivity in order to
conclude contractual negotiations.
Shares at 0820 GMT were up 0.50 pence, or 8.5%, at 6.38
pence.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
December 28, 2017 03:45 ET (08:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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