This morning Providence Resources (LON:PVR), the project’s operator, announced that the Irish authorities had agreed to extend the current licence period until July 2017, and that the subsequent phase would also be given two extra years.
It gives the companies more breathing room as an ongoing process to bring in a new development partner.
The extent of the licence has also increased by 118 sq km to accommodate for mapped potential extensions of the Barryroe accumulation into an adjacent area. Barryroe's licence area lies in 100 metre water in the North Celtic Sea Basin and 50 km off the south coast of Ireland.
Tony O'Reilly, Providence’s chief executive, said: "We are very pleased to announce these extensions to the Barryroe licence which provide additional security of tenure whilst also consolidating the upside resource potential that we have identified in the immediately adjacent acreage."
Dublin broker Davy, meanwhile, highlighted that the extension would reduce potential risks to the project’s future.
“The additional security provided by the extension of the Barryroe licence period to July 2019 removes a potential worry for investors and is thus incrementally positive,” Davy analyst Job Langbroek said in a note.
Lansdowne shares - which have been under pressure in recently following a disappointing results in a separate exploration project - rallied 26.67% to trade at 2.38p