Providence Resources receives $5.4m from Druid Drombeg deal
Agreement reached in June to transfer some exploration rights to French firm Total
Providence Resources said it had received the “second and final payment” in relation to a deal struck in June that saw it cede some of rights to explore the Druid Drombeg well.
Oil and gas exploration company Providence Resources has received $5.4 million (€4.6 million) from a deal struck in June that saw it cede some of the rights to explore the Druid Drombeg well off the Irish coast.
The licence in the southern Porcupine Basin is operated by Providence on behalf of its partners Capricorn Ireland and Sosina Exploration. The agreement surrendered 35 per cent of Providence’s licence to the Irish subsidiary of French oil multinational Total.
Providence announced at the beginning of August that analysis of the Druid well, which is 220km off the southwest coast of Ireland, showed the reservoir contained water, which renders it useless for the purposes of exploration.
The agreement was subject to a total payment of $21.6 million to Providence. The company said in a note to the Irish Stock Exchange on Friday that it had received the “second and final payment”.
As well as the payment to Providence, UK-based explorer Sosina received $1.35 million from the deal.