Cairn Energy plc, the former parent company of Cairn India, has bought stakes in two Irish oil and gas blocks in a cost-and-carry deal. Under the terms of the deal, Capricorn Ireland, a subsidiary of Cairn Energy, acquired the rights to obtain a 38% in Porcupine Basin pair Frontier Exploration Licence and also six adjacent licencing option blocks. Meanwhile, Chrysaor will retain up to a 36% interest in partnership, though the farm-out agreement has yet to be approved by government.
The two licences - FEL 2/04, which includes the Spanish Point and Burren discoveries, and FEL 4/08 - together cover an area of 1,242 square kilometres and are currently operated by Chrysaor and SOSINA Exploration. In return, Cairn Energy will pay $4.1 million in pro-rated back costs and carry 63.33% of future exploration and appraisal costs for up to two wells, subject to a cap.
