Irish oil and gas exploration company Providence Resources has said its subsidiary Exola has entered into an exclusive agreement to acquire a 60 per cent interest in an option which is adjacent to the Barryroe oil field in the North Celtic Sea Basin.

Providence said that under the three-year deal with PSE Kinsale Energy, Exola will have the right to earn a working interest in the southern portion of Offshore Petroleum Lease 1 (OPL1).

The option does not cover the northern portion, which contains the producing Kinsale gas field.

Providence chief executive Tony O’Reilly welcomed the announcement, describing the deal as a “unique opportunity to test a potential eastern extension of the Barryroe oil field.”

Providence, which is listed in Dublin and London, has a portfolio of oil and gas assets located offshore Ireland and the UK.