Providence Resources in OPL 1 Option Agreement with PSE Kinsale Energy
Providence Resources announced Thursday that it has, through its wholly owned subsidiary Exola Limited, entered into an exclusive option agreement with PSE Kinsale Energy Limited over the southern portion of Offshore Petroleum Lease 1, which is immediately adjacent to the Barryroe oil field in the North Celtic Sea Basin.
Under the terms of the option, Exola will have the right to earn a 60 percent working interest in the southern portion of OPL 1, through the 100 percent funding and drilling of one exploration well in the option area to evaluate the resource potential of the basal Wealden reservoir interval. The option, which is exercisable for a period of 3 years, does not cover the northern portion of OPL 1, which contains the producing Kinsale gas field.
Commenting on the announcement, Tony O’Reilly, chief executive of Providence, said in a company statement:
“We are very pleased to have agreed this option to acquire a 60 percent interest over a portion of OPL 1. This represents a unique opportunity to test a potential eastern extension of the Barryroe oil field.”
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