Total has exercised its farm-in option to acquire a 35% interest and operatorship in Providence Resources’ Frontier Exploration Licence (FEL) 2/14 in the UK’s southern Porcupine Basin.
The development comes after Total’s subsidiary Total E&P Ireland reached an option agreement with Providence Resources last year.
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The company has made an aggregate payment of $27m, which comprises $21.6m to Providence and $5.4m to Sosina.
Providence Resources chief executive Tony O’Reilly said: “The Cairn farm-in and Total option over FEL 2/14 were pivotal commercial transactions that allowed us deliver on our core stated objective from our 2016 fundraising by securing incremental capital to evaluate the deeper Drombeg prospect alongside the planned drilling of Druid, whilst also providing surplus cash, which is now being partially deployed to the Barryroe project.
“These commercial transactions have continued to evolve with Total now exercising its option to farm-in for a 35% interest and operatorship in FEL 2/14, subject to the approval of the minister of state at the Department of Communications, Climate Action and Environment, thereby leaving Providence with a 28% interest in FEL 2/14.”
In June last year, Total exercised its option to farm-in for a 50% interest and gain operatorship of LexerO 16/27.
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By GlobalDataProvidence Resources has a portfolio of appraisal and exploration assets in offshore Ireland.
