Providence updates market on delay to farm-out of Barryroe
Exploration company has extended its exclusivity period with SpotOn Energy until the end of November
Chief executive Alan Linn says Providence has made “excellent progress” in agreeing farm-out terms for the Barryroe licence despite Covid constraints. Photograph: Finbarr O’Rourke
Irish exploration company Providence Resources said on Friday that it has extended its exclusivity period with SpotOn Energy for the farm-out of the Barryroe licence.
The company said that in order to facilitate full completion of the farm-out documentation it has agreed to extend the exclusivity period to November 30th, 2020. It had originally been expected that the deal would be finalised by end-October.
Chief executive Alan Linn said that Providence has made “excellent progress” in agreeing farm-out terms despite the Covid constraints.
“The farm-out is structured to ensure that the development is fully funded and includes an Early Development Scheme work programme for the Barryroe oil and gas field located in Standard Exploration Licence 1/11.
“It is important that the partnership agreements and work programme are comprehensively documented, and this process requires some additional time to complete,” he said.
In a note Davy Stockbrokers said the delay should “come as no surprise” given the level of detailed agreement documentation required.