Lansdowne Oil & Gas Plc (LON:LOGP) shares shot up around 160% on Thursday with the news that a potential farm-in partner has entered into an exclusivity agreement and is in ongoing negotiations for a stake in the Barryroe field.
Provisional agreements have been made with the unnamed potential new partner over the key commercial terms of a deal, Providence Resources revealed in a stock market statement.
Lansdowne has a 20% stake in the Barryroe field, where the 2018 well programme is planned to target some 436mln barrels of oil in place at a cost of around US$25mln.
In October, the companies highlighted that the two planned well penetrations are designed to provide further "definition around structure, reservoir, fluid phase, connectivity and resource estimates".
The idea is that the well will materially move the east flank of the Barryroe field towards development.
Thursday’s statement also confirmed that “various work-scopes for the planned drilling” had now begun.
“These work-scopes include well planning and consenting, together with the preparation of the invitation to Tender (ITT) for the procurement of a drilling unit, which it is planned to issue in early Q1 2018,” the company said.
Providence holds 80% of Barryroe and it is presently the operator of the project.
Changing hands at 1.99p, Lansdowne shares were up 1.16p or 140.9%. Providence, meanwhile, rose 23% to trade at 7.25p.