Sunday 20 January 2019

O'Reilly sees healthy interest in Providence

Tony O’Reilly Jr of Providence
Tony O’Reilly Jr of Providence
Gavin McLoughlin

Gavin McLoughlin

Providence Resources has received "good industry interest" from potential drilling partners for a prospect off the South West coast, according to chief executive Tony O'Reilly jr.

The prospect, known as Newgrange, is deemed by analysts at Mirabaud to be one of Providence's two "nearest term exploration opportunities" - following on from plans to drill three vertical wells at the company's flagship prospect, Barryroe.

O'Reilly said he agreed with that assessment.

Providence was granted an extension to its Newgrange licence during the week and is aiming to acquire fresh seismic data on the prospect this summer. Providence is sitting on cash of around $20m and could potentially drill a well on Newgrange itself, because the prospect has a shallow structure, making drilling costs cheaper. O'Reilly's preferred strategy is to find a farm out partner, however.

Meanwhile, Lansdowne Oil & Gas, a partner of Providence in the Barryroe prospect, has raised almost £1m on the back of the recently signed farmout deal at Barryroe, which sees a Chinese consortium come on board.

The consortium will cover the drilling costs of the three wells, recovering half the costs from production cash if production occurs.

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