Providence agrees exploration deal with ExxonMobil

Gas exploration and production company Providence has signed a farm-out agreement with ExxonMobil, the world’s largest oil and gas company, on its Dunquin Prospect in the Porcupine Basin off the west coast of Ireland.

The AIM and ISEQ-listed company was granted an 80% interest of the Dunquin Prospect licence in November 2004 with its 20% partner, Sosina Exploration Limited. Covering an area of some 700 km2, the large Dunquin Prospect extends over five blocks.

The licence for these blocks was granted to Providence and Sosina under the Government’s Frontier Exploration Initiative.

The terms of the farm-out agreement provide for ExxonMobil to conduct exploration on the Dunquin Prospect in return for an 80% interest in the prospect. Providence will retain a 16% interest, and Sosina, a 4% interest. The assignment of the interest to ExxonMobil is subject to Irish Government approval.

ExxonMobil may finance the drilling of up to two exploratory wells on the Dunquin Prospect after an initial survey without further partner dilution.