Spanish Point deal on cards

Providence Resources is expected to conclude a farm-out deal for its Spanish Point asset — in which it is a near 60% shareholder — in the next three to six months.

Speaking after the company’s recent set of annual results, chief executive Tony O’Reilly Jr said Providence still hoped to drill at Spanish Point, located off the south-west coast and shared with UK firm Cairn Energy during 2016. Providence hopes to lower its 58% stake in the asset to around 32% and Mr O’Reilly suggested that talks surrounding this farm-out proposal — much like the process at its Barryroe field in the Celtic Sea — remained ongoing.

One industry source yesterday suggested that if Providence remained serious about 2016 drilling prospects at Spanish Point, it needed to have a farm-out deal in place within the next three to six months.