Irish exploration firm Providence Resources has acquired Chrysaor Exploration & Production Ireland Limited (CEPIL), and reached commercial terms with a partner to develop the Barryroe oil field in the Celtic Sea.

Providence owns 80 per cent of the Barryroe project, alongside partner Lansdowne Oil and Gas, which has the other 20 per cent. The farm-out process involves bringing in a bigger company to advance the project from development to oil production.

As the farm-out is subject to closing conditions, most specifically the proposed development partner raising the required level of financing, Providence said it wasn’t disclosing the terms of the deal.

CEPIL holds a 26 per cent equity interest in the Spanish Point field, as well as equity interests in two other licences located in the northern Porcupine Basin, offshore Ireland.

Providence chief executive Tony O’Reilly said the acquisition of CEPIL, has materially increased the company’s equity position in the flagship Spanish Point project.

“Whilst the project is still at appraisal stage, the recent technical studies have highlighted the upside resource potential at Spanish Point, which, if realised, would confirm the field to be a major hydrocarbon accumulation”.

He said the agreement of commercial terms for Barryroe is “a positive step forward”.