Providence to drill Spanish Point as funds deal secured
PROVIDENCE Resources says drilling for oil and gas off the coast of Co Clare will get under way later this year, after agreeing a deal with a financing partner.
Shares in Providence were little changed yesterday after the Irish company confirmed that drilling of the "Spanish Point" gas discovery is to begin in the third quarter of next year.
Yesterday, Providence said its British-based partner Chrysaor was to double its stake in two licences covering the project from 30pc to 60pc under a deal to finance drilling.
Chrysaor will be the operator of the site. Providence is to keep a 30pc share in the venture, while technical expert Sosina will have an 8pc stake.
The site is named after a scenic Clare beach but in fact lies 200 kilometres west of Ireland, in water 400 metres deep.
The discovery is reckoned to contain 200 million barrels of recoverable oil potential, in a mix of oil and gas.The Spanish Point strike was first drilled in 1981 but was abandoned because it was regarded as not commercially viable.
In recent years Providence has bought rights to a number of such fields as the higher price of oil makes even harder-to-access wells more valuable. It is also active in the Barryroe field off the coast of Co Cork.
Providence chief executive Tony O'Reilly said: "We are delighted to confirm that the pre-drill activities for the Spanish Point appraisal well have commenced and that a spud date has been scheduled."