Scottish oil and gas exploration firm Cairn Energy has made its first move into the Irish energy sector after securing two new farm-in agreements.
The Edinburgh-based firm said it had now taken over the operator role for two licences in the Porcupine Basin west of Ireland.
The Spanish Point gas condensate and Burren oil discoveries together covering 1,242 sq km are currently operated by Chrysaor (60%), with Providence Resources and SOSINA Exploration respectively holding 32% and 8% stakes.
Under the new agreement Cairn will acquire a 38% working interest and operatorship of the two licences for a pro-rated share of back costs amounting to $4.1 million.
The company will also take on board two-thirds of the future licence exploration and appraisal costs. Drilling of the first appraisal well on Spanish Point is targeted for the second quarter of next year.
Cairn chief executive Simon Thomson said: “The addition of this prospective acreage off the west coast of Ireland in the Porcupine Basin brings further exploration and appraisal potential to Cairn’s frontier Atlantic Margin portfolio.”
