Providence Resources, the AIM (London) and IEX (Dublin) listed oil and gas exploration and production company, today announced that it has agreed its first farm out deal with Challenger Minerals (Celtic Sea) Limited ("CMCSL") a subsidiary of GlobalSantaFe Corporation (GSF) on its Spanish Point Project in the Porcupine Basin, off the west coast of Ireland. This farm out is subject to approval from the Irish Minister for Communications, Marine and Natural Resources.
Under the terms of the deal, CMCSL will take a 10% interest in the Spanish Point Project, leaving Providence and its partner Sosina with 72% and 18% stakes, respectively. Further farm out discussions continue with other third parties.
Commenting on this important farm out agreement, Tony O'Reilly Jnr., Chief Executive of Providence Resources P.l.c., said:
"This is a very important step forward in progressing the Spanish Point field and we are absolutely delighted to be working with our very experienced partners at CMCSL/ GlobalSantaFe. In a very tight rig market, it is extremely important to secure partners that can add value to a Project and GlobalSantaFe, being the second largest rig owner in the world, will be able to do exactly that.
"Having secured this initial farm out agreement with CMCSL, Providence looks forward to progressing its discussions with other third parties with a view to assembling a drilling syndicate to drill the Spanish Point Project as early as possible".