Exploration firm Chrysaor has said it will increase its stake in the Spanish Point licences off the west coast of Ireland.
The London-based company will exercise its option to double its stake to 60 per cent, in return for the drilling of up to two appraisal wells on the discovery, which is owned and operated by Dublin-based Providence.
The licences are situated in the Main Porcupine Basin, approximately 200 kilometres off the west coast in a water depth of around 400 metres.
Under the terms of the deal, Providence's stake in Spanish Point will be reduced to 32 per cent, while London-based Sosina, the other partner in the venture, will see its stake reduced to eight per cent.
Tony O'Reilly, CEO of Providence, said: "The exercise of this option by Chrysaor is further validation of the significant potential of the Spanish Point Project and adjacent acreage. We look forward to working with Chrysaor and Sosina on this appraisal drilling, which forms part of Providence's previously announced multi-year, multi-basin Irish drilling program."
Phil Kirk, CEO of Chrysaor said: "We're very pleased with how our partnership with Providence and Sosina is working and hope the success the group has had over the last few years will be mirrored in the future as we more fully appraise Spanish Point and move towards a development project."
The Spanish Point discovery was made by Philips Petroleum in 1981; however, it was not appraised due to lack of gas infrastructure and market in Ireland at the time. In 2004, Providence and Sosina together licensed the discovery, and in 2008 Chrysaor was farmed in by agreeing to fund a 300 square kilometre 3D seismic survey.
