Providence Resources has signed a 10 month option agreement with Star Energy Group ("Star") in relation to its 100% owned and operated Standard Exploration Licence (SEL) 1/07, or the Dragon Licence, in the St George Channel Basin, offshore southeast Ireland.
The Dragon licence is situated in c. 90 metre water depth and is located c. 40 km offshore, south east Ireland. The licence contains the mapped extension of the UK Dragon gas discovery into Irish waters, as well as the deeper Orpheus and Pegasus exploration prospects. The option agreement provides for Star to acquire a non-operated 50% interest in the Dragon Licence in return for carrying out a number of subsurface studies on the Dragon gas discovery. Should Star subsequently exercise this option, Star will participate in the drilling of the planned appraisal/development well on the Dragon discovery. This transaction is subject to Irish governmental approval.