Providence Resources said that its partner Chrysaor is exercising its pre-agreed option to increase its equity stake in the Spanish Point area (Frontier Exploration Licence (FEL) 2/04) and adjacent license (FEL 4/08) in the Main Porcupine basin, offshore Ireland.

As per the terms of the 2008 farm-out agreement, Chrysaor have now confirmed that following the analysis of the 2009 3D seismic data, it will exercise its option to drill up to two appraisal wells on the Spanish Point discovery.

Chrysaor will double its equity participation in FEL 2/04 and FEL4/08 from 30% to 60% and assume the drilling management role for the Spanish Point program.

Hence, the Irish oil and gas explorer’s equity will decrease from 56% to 32% with Sosina’s equity reducing from 14% to 8%.

Providence said that it operates both licenses on behalf of partners Chrysaor and Sosina Exploration.