Providence agrees farm-in into North Celtic Sea Basin oil discoveries
Deal covering Helvick and Dunmore oil discoveries requires ministerial approval
Providence resources technical director John O’Sullivan (left) with chief executive Tony O’Reilly and chairman Dr Brian Hillery. Photograph: Dara Mac Dónaill /The Irish Times Photographer: Dara Mac Donaill / THE IRISH TIMES
Oil and gas exploration company Providence Resources has agreed a phased farm-in into two of its North Celtic Sea Basin oil discoveries by ABT Oil & Gas.
The deal covers the Helvick and Dunmore oil discoveries, and Providence has applied to the Minister of State at the Department of Communications, Energy and Natural Resources to convert the part of the licence that contains the discoveries into two separate lease undertakings.
ABT Oil and Gas will assist joint venture partners in conducting a work programme to determine if the discoveries can be developed commercially.
The deal is subject to approval by the minister.
Technical director John O’Sullivan said Providence hoped the partnership could help realise the potential from the two dormant oil discoveries, leaving the company free to focus on more material assets in its Irish portfolio.
“This farm-in transaction is consistent with our strategy to progress opportunities to a certain stage of definition and then leverage in appropriate partners to advance them towards development and ultimate production,” he said.