Exploration firm Chrysaor is to increase its stake in the Spanish Point licences off the west of Ireland.

The company has exercised its pre-agreed 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 Providence Resources.

The option was part of a farm-out deal agreed between the companies in 2008.

The licences are located in the Main Porcupine Basin, approximately 200 km off the west coast of Ireland and are situated in 400 metre water depth.

As a result of the new agreement, Providence's equity in the Spanish Point area will fall from 56 per cent to 32 per cent, while fellow partner Sosina will have its stake reduced from 14 per cent to 8 per cent.

“The exercise of this option by Chrysaor is further validation of the significant potential of the Spanish Point Project and adjacent acreage," said Providence chief executive Tony O'Reilly.