Providence postpones exploration at Spanish Point well

Move follows ‘unforeseen’ changes to joint venture

 

Providence, the Irish oil and gas exploration and appraisal company, said on Tuesday that it has deferred an appraisal/exploration well at its Spanish Point site “pending discussions with partners and the Government of the Republic of Ireland”.

Tony O’Reilly, chief executive of Providence, said that the delay to drilling, which was originally scheduled for 2015, follows “recent unforeseen changes to the make-up of the joint venture and the consequent delay to the securing of equipment and other necessary requirements”.

“As stated previously, Providence’s involvement in the well was subject not only to equipment availability, but also to either further financing or concluding a farm out with a third party company. Discussions with interested third parties in relation to Spanish Point continue and further announcements will be issued, as appropriate,” he said.

Capricorn Ireland Limited, a wholly owned subsidiary of Cairn Energy with a 38 per cent share in the well, operates the licence on behalf of its partners, Providence Resources (58%), and Sosina Exploration (4%).

Exploration at the well was also delayed in 2014 due to delays to a refurbishment of the rig.