Providence to sell 32% stake in Spanish Point licence

Irish-based oil and gas exploration firm Providence Resources is beginning the farm out process to divest some of its interest in the Spanish Point area.

The company is selling a 32 per cent non-operated interest in the area, retaining a 26 per cent stake. The Spanish Point area lies in the northern Porcupine Basin off the west coast of Ireland, and contains the upper Jurassic Spanish Point gas condensate field and Lower Cretaceous Burren oil discovery.

A drilling programme is expected to take place in 2017, subject to governmental approval, and is expected to benefit from cost reductions that will significantly reduce the overall cost of the appraisal programme.

“Following the recent closure of the 2015 Irish Atlantic Margin bidding round, which attracted record industry interest, this divestment process represents an excellent opportunity for a third party to acquire a material, non-operated equity stake in a large Irish offshore project with near term appraisal drilling, combined with further appraisal and exploration upside,” said John O’Sullivan, technical director of Providence. “The proposed drilling programme is being managed by established operator Cairn Energy and is expected to take advantage of the recent fall in global offshore drilling and service costs.”