Exploration firm Providence Resources has signed a deal with Star Energy Group that gives the company the option to acquire a 50 per cent stake in Providence's Dragon licence.
The 10-month option agreement will allow UK based Star to take a non-operated interest in the licence, located off the south-east coast of Ireland, in return for carrying out a number of subsurface studies on the Dragon gas discovery.
The licence, located in the St George's Channel Basin, contains the extension of the UK Dragon gas discovery into Irish waters, and the Orpheus and Pegasus exploration prospects.
If the company chooses to take up its option, it will participate in the drilling of the planned well on the discovery.
The deal must be approved by Irish authorities.
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