IRISH EXPLORATION firm Providence Resources has been offered a new licensing option in a site adjacent to the Barryroe field off the coast of Cork.

The option on five blocks, which covers an area of 500sq km located to the north and west of the Barryroe field, has been offered by the Department of Communications, Energy and Natural Resources.

In a statement yesterday, Providence said the option had a two-year term and after that it may be converted into a standard exploration licence with the commitment to drill a well. The company, which holds an 80 per cent interest, will operate the licence on behalf of its partner Lansdowne Oil Gas, which holds a 20 per cent share.

Chief executive Tony O’Reilly said the company was pleased to have been offered the option, which increased its acreage position in the most prospective central part of the basin. “Our work programme has been designed to assess the potential of any extensions of the Barryroe field into the option area, together with determining whether any further satellite accumulations may exist close to the fields that warrant investigation,” he said.

Barryroe is one of six sites being developed by Providence around Ireland as part of a two-year drilling plan.