Providence Resources has entered into an agreement with Shell International Trading and Shipping Company to negotiate an oil offtake sale and purchase agreement for future oil production from its Barryroe and Hook Head oil discoveries.

It is not known if Shell will have exclusive rights to oil produced from the Celtic Sea assets, nor is it known how valuable a deal it is for Providence, but Providence’s share price shot up by nearly 5% to €2.95 on the back of the news, reports Irish Examiner.

The oil discoveries are located in the North Celtic Sea Basin off the south coast of Ireland, directly below the Seven Heads Gas Field.

Oil was successfully tested at the sites at flow rates of between 1,300 and 1,600bopd.