Providence Resources: Total Exercises Farm-In Option Over FEL 2/14 License

By Ian Walker Features Dow Jones Newswires

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.

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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

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(END) Dow Jones Newswires

December 28, 2017 03:45 ET (08:45 GMT)