Providence closes in on Celtic drilling

PROVIDENCE Resources has completed a 3D seismic study of its Barryroe oil discovery off the Cork coast — a key element of its pre-development drilling programme in the Celtic Sea.

Barryroe marks the starting point of Providence’s hotly anticipated six basin drilling campaign off the coasts of Ireland and Britain over the next 18 months or so — and is set to see drilling begin in September.

Providence owns a 50% share of Barryroe, with the remainder owned by San Leon Energy and Lansdowne Oil & Gas.

In a short statement yesterday, Providence said that it and its aforementioned development partners on the project “believe that modern 3D seismic data, in tandem with modern well completions in the current high oil price environment, will be key components to unlocking value at Barryroe.”

Such a 3D seismic exercise gives exploration companies a much clearer picture of where oil and gas activity actually lies in each asset. It is unclear whether or not Providence plans to make the results of this current survey public prior to drilling at Barryroe in two months time.

Providence’s chief exective, Tony O’Reilly Jnr, told shareholders at the company’s annual general meeting last month that the company would continue to consider selling equity stakes in its Irish-based assets as it further progresses its two-year drilling campaign, which is set to be the biggest ever conducted in Irish waters.

While Mr O’Reilly said that the firm’s Rathlin Island oil licence has specifically attracted expressions of interest from other players, he added that further strategic partnerships could be developed on other assets, possibly including Barryroe.

Providence is also still interested in disposing of any remaining non-core assets outside of its Irish/British portfolio — its minority share of the AJE field off the coast of Nigeria, being the prime example.