Providence reports ‘steady progress’

Exploration firm in negotations to find strategic farm-in partner for Barryroe

The Providence Resources drilling rig at the Helvic oil field in the Celtic Sea.

The Providence Resources drilling rig at the Helvic oil field in the Celtic Sea.

Thu, Dec 19, 2013, 08:32

Irish exploration firm Providence Resources has reported “good industry interest” in finding a strategic farm-in partner for its Barryroe oil field.

“There has been good industry interest and discussions are ongoing with a select number of international E&P companies from Asia, North America and Europe ,” chief executive Tony O’Reilly Jr said.

He said the company was currently in negotiations with parties on deal terms, adding there can be no certainty on timing for a mutually acceptable agreement or that an agreement will be reached.

In an end of year trading statement, the company said it was focussed on progressing its multi-well drilling programme offshore Ireland, in particular, the Barryroe oil field and the drilling of the Dunquin exploration prospect.

“This is the largest and most comprehensive concerted drilling operation offshore Ireland and represents an investment of up to $500 million by Providence and its partners in a range of exploration and appraisal/development wells spread across six different basins.”

Mr O’Reilly said the results from the Dunquin North well were still the subject of extensive post well studies, adding the company continues to be very encouraged by the data so far.

The company reported “steady progress” for 2013, saying pre-drill operations were underway for the four remaining wells to be drilled during 2014 and 2015 at Spanish Point, Dragon, Polaris and Kish Bank.