Providence agrees to farm-in for Barryroe offshore Ireland

Offshore staff

DUBLIN, IrelandProvidence Resources has reached agreement on commercial terms with a proposed farm-in partner to its Barryroe field in the North Celtic Sea basin offshore southern Ireland.

The deal remains subject to certain conditions, notably the farminee raising the required level of financing.

Providence has an 80% interest in Barryroe in licenses SEL 1/11 and LO 12/4 via its subsidiary EXOLA. Lansdowne Oil and Gas holds the remaining 20%.

In a separate development, Providence has acquired the entire share capital of Chrysaor Exploration & Production Ireland Ltd. (CEPIL) from Chrysaor Holdings.

CEPIL has a 26% equity stake in the Spanish Point gas/condensate field in Irish offshore licenses FEL 2/04, along with 26% in FEL 4/08 and FEL 1/14, following a farm-out agreement with Providence in 2008. They cover a total area of around 2,000 sq km (772 sq mi), 175 km (109 mi) off Ireland’s west coast, in water depths of roughly 400 m (1,312 ft).

According to Providence, which has a 32% share of the concessions, most of the acreage is covered by modern, high-quality 3D seismic.

The company has agreed to pay Chrysaor a contingent success fee of $5 million if a final investment decision is taken for Spanish Point. In addition, Chrysaor CNS will take a 15% interest in FEL 1/14, subject to Irish Ministerial approval. Sosian Exploration is the other existing partner.

Providence adds that it has received a number of third-party expressions of interest in the area.

An appraisal well is due to be drilled this summer on Spanish Point.

02/09/2015

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...