Providence agrees Celtic Sea farm-out

PROVIDENCE Resources has agreed a further farm-out agreement concerning part of its mining assets in the Celtic Sea off the south coast.

The Dublin-based oil and gas exploration company, which is listed on the IEX market in Dublin and London’s AIM, is farming out an extra 15% of its Celtic Sea Standard Exploration Licence 2/07. Farm-out agreements see exploration companies sell a percentage of equity in their drilling interests in return for another company to cover the day-to-day developmental and operational costs.

This latest 15% is being farmed out to Canadian company, Forest Gate Resources in a move which marks the Toronto Stock Exchange-listed company’s first foray into exploring in Irish waters. The deal is subject to approval from the Department of Communications, Marine and Natural Resources.