Tuesday 26 September 2017

Providence Resources signs up partner to develop Barryroe field

Shares are undervalued in Irish companies such as Providence Resources, which is drilling at Barryroe off West Cork coast
Shares are undervalued in Irish companies such as Providence Resources, which is drilling at Barryroe off West Cork coast
Providence at work at Barryroe

Independent.ie reporters

Exploration firm Providence Resources has signed up a partner to develop its Barryroe field off the Cork coast.

Providence owns 80pc of the Barryroe project, alongside partner Lansdowne Oil and Gas, which has the other 20pc.

The farm-out process involves bringing in a bigger company to advance the project from development to oil production.

Providence said today that the company was not disclosing any more detail at this stage.

"As the farm-out is subject to closing conditions, most specifically the proposed development partner raising the required level of financing, Providence said it wasn’t disclosing the terms of the deal," it said in statement.

A recent audit carried out by oil and gas consultancy firm Netherland Sewell said the best estimate of recoverable oil at Barryroe was 311 million barrels.

Meanwhile, Providence Resources has acquired Chrysaor Exploration & Production Ireland Limited (CEPIL).

CEPIL holds a 26pc equity interest in the Spanish Point field, as well as equity interests in two other licences located in the northern Porcupine Basin, offshore Ireland.

“Whilst the project is still at appraisal stage, the recent technical studies have highlighted the upside resource potential at Spanish Point, which, if realised, would confirm the field to be a major hydrocarbon accumulation,” chief executive Tony O'Reilly said.

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