New Providence chief confident about securing 'attractive partner' for Barryroe oil well

The new boss at Providence Resources, Alan Linn, said he’s confident in the potential of the Barryroe well off the Cork coast, as he seeks to secure an “attractive partner,” despite the huge setbacks faced by the oil company last year.

Mr Linn replaced Tony O’Reilly Jnr as chief executive and the Providence board was restructured after the company was rocked by its failure to secure a pledged €8m from APEC Energy, a Chinese group, last year.

It is seeking to tap funds from shareholders, in the coming weeks, to give Mr Linn time to clinch any farm-out deal with a partner to develop Barryroe. New shareholder funds are needed to keep the company going. He said that, beyond the 346m barrels of oil equivalent in the field, other, “significant” parts of the well have yet to be appraised.

“Our focus is to get Barryoe though appraisal to development,” Mr Linn said. “We have very supportive investors and they continue to show confidence in the business,” he said, adding that the restructured board and cost-reductions had bolstered its investment case. He said it would have time to secure an “attractive partner” and develop the well.

His commitment to Providence could be measured in the long-term share options agreement he had with the firm, Mr Linn said.

The proposed oil exploration ban unexpectedly announced by Taoiseach, Leo Varadkar, late last year, didn’t directly affect Providence, because the ban involved the Government ending issuing of new licences, he said. It was, nonetheless, an issue Providence had to explain to potential farm-out partners. He said that he has spoken to “a number of potential farm-out” partners, but wouldn’t say who.