Providence shares soar on back of ‘super major’ deal

One of the world’s largest oil companies, France’s Total has signed two commercial development deals with Irish exploration company Providence Resources – a move which sent the latter’s shares soaring as much as 11% yesterday.

Total, one of the energy sector’s so-called ‘super majors’, has signed up – via its Irish subsidiary – Total E&P Ireland - for a 50% working interest in the Providence-controlled Avalon prospect off the west coast of Ireland.

Separately, the French giant has entered into an exclusive option agreement for a 35% share of the frontier exploration licence which contains the Druid, Drombeg and Diablo prospects. The latter will see Providence and junior partner Sosina receive phased cash payments of $27m. It also comes three months after Providence farmed out a 30% stake in the licence area to Scottish explorer Cairn Energy.