Irish explorer Providence Resources and its partner Sosina have received a final payment from Total for a previously announced exclusive farm-in option for an acreage offshore Ireland.
As previously reported, Total in June agreed with Providence on having an exclusive option regarding the Frontier Exploration Licence 2/14, 220 kilometers off the south west coast of Ireland.
Under the terms of the option, Total had the option and the right, but not the obligation, to farm-in to a 35% working interest in FEL 2/14 from Providence & Sosina subject to the payment of $27 million to Providence and Sosina. Total then later in June paid the first tranche of $20.5 million.
The FEL 2/14 contained the Paleocene “ Druid “, Lower Cretaceous “ Drombeg ” and Jurassic “Diablo” exploration prospects.
Total could exercise the option within 60 business days of the completion (plugging and abandoning) of the then upcoming 53/6-A well targeting the Druid and Drombeg prospects.
Providence subsequently drilled the Druid and Drombeg prospects using the Stena IceMax drillship, failing to find hydrocarbons in the process. The drillship plugged the well and left Ireland earlier this week . The Diablo prospect in the license remains undrilled.
In a statement on Friday, Providence said it had, together with Sosina received from Total, $6.75 million (US$ 5.40 million to Providence), being the second and final option payment.
Offshore Energy Today Staff