Providence Resources has reached agreement with a proposed farm-in on its Barryroe asset, in the Celtic Sea offshore Ireland.
But, further details are not being released due to the deal relying on the farm-in partner needing to secure finance.
The Barryroe field, 80% owned by Providence and sitting in SEL 1/11 and LO 12/4 in the North Celtic Sea basin offshore Ireland, has been sitting on the project development shelf waiting for development funding.
Image: Barryroe, offshore Ireland. Map from Lansdowne Oil & Gas, partner in SEL 1.11 and LO 12/4.
Providence has been planning a phased development, with early production, of about 30,000bbl/d, using a small wellhead platform and floating storage and offloading vessel. The development would then move to the west of the field, and additional infrastructure, with a nominal name plate of 100,000bbl/d, installed, subject to regulatory approvals. The first phase development could make use of the existing Seven Head manifold, which sits over Barryroe, and would be able to transport associated gas via the Kinsale infrastructure (two platforms with a pipeline to shore).
In September last year, Providence said planning was underway for further drilling on Barryroe during 2015, with a view to reaching first oil by 2018.
Tony O’Reilly, Providence's CEO, said: “The agreement of commercial terms for Barryroe is a positive step forward. We continue to work towards the conclusion of a transaction and we look forward to updating shareholders on this and the proposed forward programme for Barryroe in due course.”
Spanish Point
Providence Resources also says it has acquired Chrysaor's Irish subsidiary, Chrysaor Exploration & Production Ireland.
The deal sees Providence take over 26% interest in the Spanish Point field, in Frontier Exploration License (FEL) 2/04, offshore Ireland, and 26% stakes in both in FEL 4/08 and FEL 1/14.
The licenses cover an area of about 2000sq km about 175 km off the west coast of Ireland, in Quadrant 35 in the northern Porcupine Basin, in about 400m water depth.
They are all operated by Cairn Energy (38%) with partners, Providence Resources (32%), CEPIL (26%) and Sosina Exploration (4%).
O'Reilly says: “We are pleased to announce the acquisition of CEPIL, which has materially increased our equity position in the flagship Spanish Point project. Whilst the project is still at appraisal stage, the recent technical studies have highlighted the upside resource potential at Spanish Point, which, if realized, would confirm the field to be a major hydrocarbon accumulation. Appraisal well planning is continuing with operations expected to commence in Q2 2015. We will provide further updates over the coming period as the Operator finalizes rig selection and progresses into the operational phase.”
Providence has agreed to pay US$1 for the assets and agreed to make a future, contingent success fee payment of US$5 million to Chrysaor Holdings in the event that a Final Investment Decision is made for the Spanish Point discovery.
As part of the Acquisition, Chrysaor CNS will take a 15% interest in FEL 1/14, subject to Ministerial approval.
Following completion of the acquisition, the equity stakes in FEL 2/04 and FEL4/08 are now Capricorn Ireland Limited (38%), Providence (58%) and Sosina Exploration (4%). Subject to Ministerial consent, the equity stakes in FEL 1/14 will be Capricorn Ireland Limited (38%), Providence (43%), Chrysaor (15%) and Sosina Exploration (4%).
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