Providence Resources back on hunt for more money as Barryroe interest ramps up

Providence Resources back on hunt for more money as Barryroe interest ramps up

Providence Resources is once again looking for fresh money, saying it is “considering its funding options” as it only has sufficient working capital to cover its costs through to the end of next month.

The oil and gas exploration company tapped shareholders for €3.4m last year to fund itself into the early part of this year.

That move - which it referred to as “the unthinkable” - followed a failure by Chinese consortium APEC Energy to produce €8m in promised project funding for the flagship Barryroe field off the Cork coast. APEC was Providence’s development partner at Barryroe.

Providence has since embarked on a severe cost cutting round and replaced long-standing chief executive Tony O’Reilly Jr with industry veteran Alan Linn.

Providence has now formally begun the legal process of assigning APEC’s 50% stake in Barryroe back to the original owners, meaning Providence will regain an 80% shareholding, with Lansdowne Oil and Gas owning 20%.

A fresh farm-out deal - aimed at bringing in a new development and funding partner for Barryroe - is now being sought. Providence said that “a number of companies” are actively assessing field data at Barryroe.

Providence has brought attention to Barryroe’s “considerable” gas resource and said “several additional companies” that had not initially been sniffing around the field have expressed interest in its gas potential.

Providence said its short-to-medium term focus remains on Barryroe, which will need at least two appraisal wells drilled to remove lingering uncertainties.

“In other words, is Barryroe a large oil field with a gas cap, or a large gas field with an oil rim?” said Davy analyst Job Langbroek.

“These uncertain elements have always been understood, but the gas potential is now also being emphasised following interest from several industry groups examining the data. In the context of the new climate action environment, this interest is welcome,” Mr Langbroek said.

Providence is also looking to find a farm out partner for its Dunquin South prospect, located off the south-west coast, after Italian explorer Eni said it was pulling out.

More in this Section

Trump in fresh warning over Huawei impact on intelligence-sharingTrump in fresh warning over Huawei impact on intelligence-sharing

Ireland needs to generate more homegrown wealth Ireland needs to generate more homegrown wealth

EY: ‘Housing pressures set to persist’EY: ‘Housing pressures set to persist’

Irish firms reach for the starsIrish firms reach for the stars


When Marisa Murphy went to play as a teenager on Dinish Island, she could still see the flowers growing among the ruins in her grandmother’Islands of Ireland: Barely inhabitated Dinish became an industrial zone

MAC make-up artist Lucy Bridge shares her tips backstage at Roland Mouret.How to create the perfect matte red lip, according to a backstage beauty expert

New trends include chunky heeled boots, silver belts and lots of plaid from the British designer.Victoria Beckham got ‘rebellious’ for her new collection – as David and family watched on

When horses were shown photographs of angry human faces, their hearts speeded up.Jackass penguin talk is similar to humans

More From The Irish Examiner