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

By Ian WalkerFeaturesDow 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.

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.

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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; @IanWalk40289749

(END) Dow Jones Newswires

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