Providence ‘close to’ farm-out deal on Barryroe

Providence Resources is understood to have reached the stage where it is finalising commercial terms with potential development partners for its highly-anticipated Barryroe oil field off the Cork coast.

The Irish explorer has been looking to farm out around half of its 80% stake in Barryroe for a year or so, but has largely been hampered by a drying up of deal interest in mainstream European exploration assets. However, despite hinting at frustration at the length of time the Barryroe farm-out has taken, Providence’s management said at the company’s AGM in Dublin yesterday, that discussions were ongoing, that a good level of interest had been shown by international parties — and the conclusion of a deal remained the board’s chief focus.

Speaking after the meeting, chief executive Tony O’Reilly Jr said that: “Providence envisages a return to drilling at Barryroe next year, with first oil flow expected by the end of 2017. He added that a farm-out deal should be finalised in the “very near future”.