Providence gets exploration licence

PROVIDENCE Resources has been, indirectly, awarded a six-block exploration licence off the coast of the North.

The licence award forms part of the licensing round offered by the British government at the turn of the year and was formally awarded to PR Singleton Ltd, Providence’s British subsidiary. It basically gives Providence extended ownership of the Rathlin Basin off the coast of the North.

The Dublin-headquartered company already has acreage in the Rathlin Basin, forming part of its multi-year Irish offshore drilling programme, which has recently got underway.

Regarding this latest licence — which has an initial six-year phase — Providence has said it will carry out a number of technical studies to gain an insight into the drillable opportunities. The company will also have a full 100% equity interest in the licence.

According to Providence chief executive Tony O’Reilly Jnr: “Providence has a clear corporate focus to evaluate the main hydrocarbon basins off the island of Ireland, and this new offshore acreage complements our already substantial portfolio, where we now have licence interests in eight distinct basins.”

He said the company now had the leading offshore acreage position in Rathlin, which is seen as one of the main emerging basins in Irish waters.

Last month, Providence finally began its offshore Ireland drilling campaign — at the Barryroe well off the Cork coast, in the Celtic Sea — which will see it drill 21 wells, across six basins, over a number of years. The company is aiming to increase its annual production rates from 900 barrels of oil equivalent per day (boepd) level to 1,500 boepd over the next couple of years.

Providence has also, recently, upped its equity stake in the Barryroe field from 50% to 80%, effectively buying out one the interest of one of its partners — San Leon Energy.