Providence Resources extends Barryroe farm-out agreement deadline
Alternative funding structure has been proposed by Norwegian partner SpotOn
Providence has stated that Barryroe could yield 350m barrels of oil, enough to supply all the Republic’s needs for almost a decade at current consumption
Providence Resources has extended the deadline for financing its farm-out agreement with SpotOn Energy at the Barryroe licence off Ireland’s south coast.
The original deadline for arranging the financing of the agreement was February 28th, but this has now been pushed out until April 30th.
The extension was required as the Norwegian Credit Export Agency, GIEK, which had been due to contribute about 20 per cent of the funding, was unable to due to the structure of the deal.
An alternative funding structure has been proposed by Norwegian partner SpotOn, involving an increased contribution by the funding consortium and bond investors.
Providence stressed that the overall scale and shape of the agreement was unchanged.
The Irish-founded explorer late last year agreed a 50 per cent farm-out of SEL 1/11 off the south coast of Ireland, which includes the undeveloped Barryroe oil and gas field, with SpotOn Energy for $166 million (€138m).
Under the proposed deal SpotOn Energy and its consortium of partners has agreed to fund, develop and produce the Barryroe field.
Providence has stated that Barryroe could yield 350 million barrels of oil, enough to supply all the Republic’s needs for almost a decade at current consumption, along with a significant amount of natural gas. It is hoped drilling of the first of four planned wells will proceed in late 2022.