Share lift as Providence enters talks to sell Barryroe stake
Oil and gas explorer Providence Resources has entered exclusive talks to sell a stake in its Barryroe oil prospect off the coast of Cork.
The announcement sent its shares higher. Providence did not name the partner it is in talks with to sell the stake.
But the company said in a trading update that it has been working on plans to drill an appraisal well and it expects to issue an invitation to tender early next year for the procurement of a drilling unit.
CEO Tony O'Reilly said that it has granted a period of exclusivity with an unidentified party to take a stake in the prospect, or what is known in the industry as a farm-in.
Mr O'Reilly said the move could lead to a "multi-well programme at Barryroe".
Providence owns 80pc of Barryroe and Lansdowne Oil & Gas holds the remaining 20pc.
The companies involved stated they were "pleased to confirm the Barryroe partners have now entered into a period of exclusivity with a potential farminee in order to conclude contractual negotiations, having reached provisional agreement on key commercial terms for a multi-well programme at Barryroe". However, Providence warned that there is no certainty that the current talks will lead to a deal.
Barryroe has more than 300 million barrels of recoverable oil.