Providence Resources PLC (LON:PVR) told investors that Total has now taken up its option to farm-in to the Avalon exploration project, offshore Ireland.
In a statement, the company said that Total now has 50% of the Licensing Option (LO) 16/27 following approval by Ireland’s Minister of State at the Department of Communications, Climate Action and Environment.
READ: Providence Resources receives US$5.4mln from Total
Under the terms of the deal, Total pays Providence US$175,000 for pro-rata past costs, as well as covering further costs up to US$1.33mln.
Should the partners take the licence option further, converting into a frontier exploration licence, then Total will cover 60% of the drilling costs up to a maximum of US$42mln.
Total will be the operator, with 50%, while Providence retains 40% meanwhile Sosina has 10%.