DUBLIN, Ireland – Providence Resources subsidiary EXOLA and Lansdowne Resources have signed a farm-out agreement with SpotOn Energy concerning the standard exploration license 1/11, 50 km (31 mi) offshore southern Ireland in 100 m (328 ft) water depth.
SpotOn will take a 50% interest in the concession which includes the Barryroe oil and gas field. EXOLA will retain a 40% stake and Lansdowne 10%.
The farm-in is conditional on SpotOn confirming that a minimum of $166 million is in place for funding the early development program (EDP), and approval by Ireland’s government.
According to Providence, the EDP, which remains subject to a declaration of commerciality and the granting of a petroleum lease, focuses initially on production from the eastern panel of the field, ahead of a phased, full-field development, and will involve:
Drilling and completing three production wells, each with a horizontal production section in the Basal Wealden A reservoir, and a water injection well in the same reservoir.
All four wells will be directionally drilled to access optimum locations within the eastern panel and will provide more information on the main Basal Wealden reservoir. The horizontal reservoir sections will be designed to maximize production and could be extended to adjacent reservoir panels to assess reservoir connectivity.
The wells will be completed with subsea trees, tied into a subsea production manifold and connected to a leased FPSO with production separation, water and gas injection capabilities and flow assurance measures.
SpotOn’s consortium is sourcing the rig which, pending regulatory approval, should mobilize to the Barryroe field in late 2022. The company will act as technical advisor and work with EXOLA to prepare the detailed program for the EDP.
Again subject to approvals, SpotOn will assume operatorship of the license.