Barryroe extension boosts Providence

Shares in Providence Resources soared by nearly 12% yesterday on the back of the Dublin-based explorer being granted an extension to its highly rated Barryroe field in the Celtic Sea.

The 180 sq km increase — granted by the Department of Communications, Energy, and Natural Resources — basically increases Barryroe’s size by 50% and provides Providence, its junior partner Lansdowne Oil and Gas and any prospective incoming developmental partners, the chance to investigate potential resources extensions.

John O’Sullivan, Providence’s technical director, said the licence increase “recognises the potential significant volumetric upside that exists at Barryroe. The structural closure, as mapped, now appears to extend further to the south and south-east. However, no wells have been drilled as yet to confirm any such extensions to the field area,” he said.

Providence controls 80% of Barryroe (Lansdowne owns 20%) and has said that it remains in talks with “a select number” of exploration and production companies regarding a farm-in to the Barryroe oil and gas field. Yesterday’s update can only help its chances of attracting a sizeable development partner, analysts feel.

Job Langbroek of Davy Stockbrokers. said: “We value the group at £16.36 per share with Barryroe making up the largest part of this at £8.92 per share.”