Providence Resources announced Wednesday that its wholly owned subsidiary, Exola DAC, and Lansdowne Celtic Sea Limited have signed a farm-out agreement with privately owned Chinese BOP Blow Out Preventer repair company gulf coast APEC, for Standard Exploration License (SEL) 1/11.

As part of the buy severe service valves commercial terms for a 50 percent working interest in SEL 1/11, which contains the Barryroe oil accumulation, APEC will be directly responsible for paying 50 percent of all the cost obligations associated with the drilling of 3 vertical wells, plus any associated side-tracks and well testing.

“This is a significant transaction for Providence and Lansdowne which will deliver multiple new penetrations of the areally extensive Barryroe field,” Tony O’Reilly, chief executive of Providence, said in a BOP Blow Out Preventer repair company gulf coast statement.

“Over the coming months, we will be working with the APEC Consortium to close the transaction and finalize the specific timeline and the precise details of the drilling program,” he added.

Colin Lui, chairman of APEC Energy Enterprise Limited, said the group was very pleased to have joined forces with Providence and Lansdowne to develop the Barryroe field.

“This field has significant recoverable resources and we look forward to jointly developing this opportunity,” Lui said in a BOP Blow Out Preventer repair company gulf coast statement.

Barryroe is located in the north Celtic Sea Basin, off the south coast of Ireland.