Chrysaor Ireland has signed a farm-out agreement with Cairn Energy to allow it to explore the Spanish Point site off the west coast of Ireland.
Capricorn Ireland, a subsidiary of Cairn Energy, will acquire the rights to obtain a 38 per cent interest in Chrysaor’s two frontier exploration licences and its licensing option.
Chrysaor will retain up to a 36 per cent interest in partnership, though the deal has yet to be approved by government.
Chrysaor chief executive officer Phil Kirk said, “It is exciting that a company of their [Cairn Energy’s] reputation, financial standing and long history of material exploration success has recognised the potential of our acreage.
We look forward to working together with them, Providence and Sosina to prove the transformational potential that exists within the Spanish Point area. The Irish Atlantic Margin is a highly prospective oil and gas province and is attracting a lot of international industry interest. The strategic position we hold and our active forward program ensures we will be at the centre of that industry activity.”
Capricorn will earn its stake in the area through taking part in the drilling of up to two wells and a 3D seismic programme taking on up to 63.3 per cent of the costs.
The partners plan to drill an appraisal well at Spanish Point in the second quarter of 2014, subject to government approval. No wells have been drilled within the Quad 35 acreage since the Spanish Point discovery 30 years ago.
