Sunday 27 May 2018

Providence shares slump 11pc over renewed farm-out fears

Providence Resources: Barryroe Well successfully flows oil and gas in 2012. Photo: Finbarr O'Rourke
Providence Resources: Barryroe Well successfully flows oil and gas in 2012. Photo: Finbarr O'Rourke
John Mulligan

John Mulligan

Shares in exploration firm Providence Resources slumped over 11pc yesterday amid speculation over its farm-out discussions in relation to its Barryroe prospect.

Weekend reports suggested the talks may not be progressing as planned and that Providence may have to undertake additional appraisal work on the site.

But the company insisted that there has been no material change in its position regarding Barryroe since late last year.

"Providence provided an update as to the status of the Barryroe farm-out in its end-of-year statement in December 2013 and considers that there has been no material change to the outlook presented at that time," it said.

"As publicly stated, Providence's strategy for the future appraisal and development of the Barryroe oil field is to co-venture with a suitable financially and technically capable third party," it explained.

"The parties with which Providence is currently in discussions (with) include major Asian, European and North American oil companies. Given the current pre-development nature of the Barryroe project, an element of further appraisal drilling has always formed an essential part of these discussions."

It made the comments as it confirmed it will undertake a survey of a swathe of the Drombeg prospect off the south-west coast of Ireland.

Providence has been awarded a follow-on frontier licence for Drombeg, having mandatorily relinquished 25pc of the prospect.

Irish Independent

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