Providence agrees to farm-in for Barryroe offshore Ireland
Providence Resources has reached agreement on commercial terms with a proposed farm-in partner to its Barryroe field in the North Celtic Sea basin offshore southern Ireland.
The deal remains subject to certain conditions, notably the farminee raising the required level of financing.
Providence has an 80% interest in Barryroe in licenses SEL 1/11 and LO 12/4 via its subsidiary EXOLA. Lansdowne Oil and Gas holds the remaining 20%.
In a separate development, Providence has acquired the entire share capital of Chrysaor Exploration & Production Ireland Ltd. (CEPIL) fromChrysaor Holdings.
CEPIL has a 26% equity stake in the Spanish Point gas/condensate field in Irish offshore licenses FEL 2/04, along with 26% in FEL 4/08 and FEL 1/14, following a farm-out agreement with Providence in 2008. They cover a total area of around 2,000 sq km (772 sq mi), 175 km (109 mi) off Ireland’s west coast, in water depths of roughly 400 m (1,312 ft).
According to Providence, which has a 32% share of the concessions, most of the acreage is covered by modern, high-quality 3D seismic.
The company has agreed to pay Chrysaor a contingent success fee of $5 million if a final investment decision is taken forSpanish Point. In addition, Chrysaor CNS will take a 15% interest in FEL 1/14, subject to Irish Ministerial approval. Sosian Exploration is the other existing partner.
Providence adds that it has received a number of third-party expressions of interest in the area.
An appraisal well is due to be drilled this summer on Spanish Point.