Providence in talks with ‘select number’ of parties

Providence Resources is in discussions with “a select number” of exploration and production companies from Asia, North America, and Europe regarding a farm-in to its Barryroe oil field in the Celtic Sea.

However, in its end-of- year statement, published yesterday, the Dublin-based exploration company said that while it is in talks with parties on deal terms, “there can be no certainty on timing for a mutually acceptable agreement or that an agreement will be reached”.

“Such a partnership would be designed to take Barryroe through detailed appraisal and, ultimately, into production. There has been good industry interest and discussions are on-going,” Providence’s CEO, Tony O’Reilly Jr said.

Mr O’Reilly said 2013 was another busy one for Providence, with activity on its multi-well drilling programme in Irish waters continuing.

The next scheduled drill is at Spanish Point, off the west coast, during the second quarter of the year, where 200m barrels of (recoverable) oil equivalent is being targeted.

Noting the increased interest in the Irish offshore, on behalf of international firms, Mr O’Reilly said the sector here is undergoing a major renaissance.

“Looking ahead, the prospects for the Irish oil and gas sector have never looked brighter, and Providence fully intends to carry on leading the way in realising the significant potential that exists in the region.”

Despite disappointing results from the ExxonMobil- operated Dunquin well, in August, Providence, which owns a 16% share of the asset, remains upbeat.

“The results from the Dunquin North well are still the subject of extensive post-well studies, but we continue to be very encouraged by the data that we have seen so far,” said Mr O’Reilly.