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SOSINA and Providence Resources grants TOTAL an exclusive option over FEL 2/14

9 June 2017 
The option comprises the right for TOTAL to farm-in to a 35% interest against a phased payment of 27 million USD

SOSINA Exploration Ltd ("SOSINA") is pleased to announce that it has entered into an Exclusive Option (the "Option") with TOTAL E&P IRELAND B.V., a wholly owned subsidiary of TOTAL S.A. ("TOTAL") regarding Frontier Exploration Licence ("FEL") 2/14.  FEL 2/14 lies in c. 2,250 metre water depth in the southern Porcupine Basin and is located c. 220 kilometres off the south west coast of Ireland.  The licence is operated by Providence Resources Plc. ("Providence", 56%) on behalf of its partners Capricorn Ireland Limited (a wholly owned subsidiary of Cairn Energy plc, 30%) and SOSINA Exploration Limited ("SOSINA", 14%).  FEL 2/14 contains the Paleocene "Druid", Lower Cretaceous "Drombeg" and Jurassic "Diablo" exploration prospects.  


Under the terms of the Option, TOTAL has the option and the right, but not the obligation, to farm-in to a 35% working interest in FEL 2/14 from Providence & SOSINA subject to the payment of USD27 million to Providence and SOSINA (USD21.6 million and USD5.4 million, respectively). The Option can only be exercised by TOTAL within 60 business days of the completion (plugging and abandoning) of the upcoming 53/6-A well, which is planned to spud in late June 2017 targeting the Druid and Drombeg prospects.


The total consideration to be paid by TOTAL to Providence & SOSINA (on a pro rata 80/20 basis) is as follows:


  • USD 20.250 million - payable within 10 business days of 6 June 2017.
  • USD 6.750 million - payable no later than three business days following the issuance of the P&A notice for the 53/6-A well.

If TOTAL subsequently elects to exercise the Option, Providence, SOSINA and TOTAL will enter into an agreed form Farm-in Agreement to effect the transfer of 35% working interest and Operatorship in FEL 2/14 to TOTAL.  Any farm-in would be subject to the approval by the Minister of Communications, Climate Action and Environment.



TOTAL is a global integrated energy producer and provider, a leading international oil and gas company, and a major player in solar energy with SunPower and TOTAL Solar. TOTAL's 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, TOTAL focuses on ensuring that its operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.



Mr. John Ødegaard,

Chairman of the Board

Mobile: +45 27 26 00 03





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