Providence offered new licensing option
Providence Resources has been offered a new licensing option in five blocks adjacent to the Barryroe field off the south coast of Ireland.
The option, which covers an area of about 500 sq km, is located to the north and west of Barryroe.
In a statement this morning, Providence said the option had a two-year term; after that, it may be converted into a standard exploration licence with the commitment to drill a well.
The company, which holds an 80 per cent interest, will operate the licence, with the remaining20 per cent going to partner Lansdowne Oil & Gas similarly holding a 20% share.
Chief executive Tony O’Reilly said the company was pleased to have been offered the option, which increased its acreage position in the most prospective central part of the basin.
“Our work programme has been designed to assess the potential of any extensions of the Barryroe field into the Option area, together with determining whether any further satellite accumulations may exist close to the fields that warrant investigation,” he said.
In a note, Davy Stockbrokers said the option made “perfect sense in the context of what Providence is trying to achieve offshore Ireland – namely a role and position in all of the prospective hydrocarbon targets and basins”.