Drilling on the Spanish Point area offshore Ireland is now scheduled for 2017, according to partner Providence Resources, which is now looking to farm-out some of its 58% interest in the license.
Spanish Point, in Frontier License 2/04 and 4/08, operated by Cairn Energy, is in the northern Porcupine Basin, offshore west of Ireland, contains the Spanish Point gas and condensate prospect and the Burren oil discovery in about 400m water depth.
Drilling had been scheduled on the license in 2014, but was set back to 1H 2015 after delays refurbishing the rig lined up for drilling, before being set back again.
Providence says: "Recent material reductions in both offshore rig-rates and associated services costs indicate that the net costs associated with this high impact appraisal program are likely to be significantly reduced compared to previous estimates."
Providence has also started a farm out process for part of its interests in FEL 2/04 and FEL 4/08. The process will focus on the divestment of a 32% non-operated interest, leaving Providence with a 26% interest.
John O’Sullivan, Technical Director of Providence said: “Following the recent closure of the 2015 Irish Atlantic Margin bidding round, which attracted record industry interest, this divestment process represents an excellent opportunity for a third party to acquire a material, non- operated equity stake in a large Irish offshore project with near term appraisal drilling, combined with further appraisal and exploration upside. The proposed drilling program is being managed by established Operator Cairn Energy and is expected to take advantage of the recent fall in global offshore drilling and service costs.”