Providence Resources to sell off stake in Spanish Point
Exploration firm Providence Resources is to sell off a 32pc stake in its Spanish Point project - a programme operated with Cairn Energy off the west coast of Ireland.
It will launch a farm-out today at the Atlantic Ireland conference, it currently has 58pc of Spanish Point with appraisal drilling scheduled for 2017.
Spanish Point is located at the Atlantic Margin and is currently believed to host an estimated 730mln barrels of oil equivalent prospective resources.
John O'Sullivan, Providence technical director, said: "Following the recent closure of the 2015 Irish Atlantic Margin bidding round, which attracted record industry interest, this divestment process represents an excellent opportunity for a third party to acquire a material, non-operated equity stake in a large Irish offshore project with near term appraisal drilling, combined with further appraisal and exploration upside.
"The company highlighted that the proposed drill programme at Spanish Point is expected to benefit from a sharp reduction in rig costs, which is the result of impacts on the sector following the decline in oil prices."