Providence farm-out negotiations 'at advanced stage'

Irish exploration firm Providence Resources says farm-out negotiations for its Barryroe oil field off the Cork coast are at “an advanced stage”.

The process involves bringing in a bigger company to advance the project from development to oil production.

Providence owns 80 per cent of the Barryroe project, alongside partner Lansdowne Oil and Gas, which has the other 20 per cent.

In its half-year results this morning, Providence chief executive Tony O’Reilly said: “The Barryroe farm out remains our main priority.”

“Negotiations are now at an advanced stage and we are working hard to satisfactorily conclude this with the objective to return cash to the business and obtain capital funding, whilst also ensuring that Providence retains a material stake in Barryroe, with a clearly defined road map for the timely drilling in 2015 and development of the field.”

The company announced losses of €3.37 million for the period to the end of June, compared to a €1.33 million loss for the same period last year.

The company said cash and cash equivalents amounted to €18 million