Business Irish

Saturday 30 August 2014

Providence Resources' Spanish Point plans hit set-back

Published 09/07/2014 | 09:21

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Dr Brian Hillery (chairman) and Tony O'Reilly (chief executive)
Dr Brian Hillery (chairman) and Tony O'Reilly (chief executive)

EXPLORATION firm Providence Resources has hit a set-back at its Spanish Point well, in the Northern Porcupine basin.

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"The postponement of appraisal drilling at Spanish Point is regrettable and beyond the control of the partnership,” chief executive Tony O’Reilly said.

Due to delays to a refurbishment of the rig, Cairn Energy, the project operator, has decided to cancel the rig contract.

As a result, anew tender process is underway for another with a 2015 drill programme.

The company said today that the planned 3D seismic programme will still go ahead.

“As the rig refurbishment delays became apparent, the operator evaluated various options to re-schedule the Blackford Dolphin rig and/or to secure another drilling unit for 2014, but this proved unsuccessful," Mr O'Reilly added.

“Our ability to commence drilling in the autumn was further constrained by the rig's operational capabilities at the Spanish Point location during winter and thus the decision was taken to terminate the contract and seek a new drilling unit for 2015.

“This procurement process has commenced and we will provide further updates as they are confirmed by the operator."

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