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.
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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.
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(END) Dow Jones Newswires
June 07, 2017 03:05 ET (07:05 GMT)