Providence Resources Inks Farm-In Pact with Total

Providence Resources PLC (PZQA.DB) said Wednesday it and partner Sosina Exploration Ltd. have entered into a farm-in agreement with Total S.A. (FP.FR) and Cairn Energy PLC (CNE.LN) for licensing option 16/27.

The Irish oil company and Sosina have also separately entered into an exclusive option agreement with Total for Frontier Exploration License 2/14.

Under the 16/27 farm-in agreement, Total E&P Ireland BV will acquire 50% working interest and operatorship of the license. Cairn Energy unit Capricorn Ireland Ltd. will have the right to acquire 20% working interest in the license from Providence and Sosina.

Under the 2/14 option agreement, Total E&P Ireland has the option and the right, but not the obligation, to acquire 35% interest in the license for $27 million.

The 16/27 and 2/14 licenses are located offshore Ireland.

Write to Tapan Panchal at

(END) Dow Jones Newswires

June 07, 2017 03:05 ET (07:05 GMT)