Providence Resources will proceed with drilling plans for its Barryroe appraisal project offshore Ireland, despite failing to consummate a farm-in agreement with Total.
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| Providence's Ireland acreage in SEL 1/11. Map from Providence |
Citing the significant value associated with Barryroe and low rates for drilling rig and offshore services, Providence last month issued a request for expressions of interest for a drilling rig, and has started to consent process for drilling, said Tony O’Reilly, Providence’s chief executive officer, in the company’s 1H 2017 report issued on 21 September.
Barryroe is in standard exploration license (SEL) 1/11 in the North Celtic Sea Basin. Providence now plans to drill at Barryroe in 2H 2018/1H 2019. The company has extended the first phase of SEL 1/11 to July 2019, and received an overall two-year license extension to July 2021.
Providence also is waiting to see if Total will exercise its option to farm into frontier exploration license (FEL) 2/14, which contains the Druid/Drombeg and Diablo exploration prospects in the Southern Porcupine Basin. Cairn Energy has farmed into FEL 2/14.
Total has farmed into and assumed operatorship of Providence’s Avalon prospect in LO 16/27 in the Porcupine Basin. Cairn also has an option to farm into LO 16/27.
Providence said is in the process of farming out interest in its Newgrange prospect in FEL 6/14 in the Goban Spur Basin.
The commercial transactions with Cairn and Total provided incremental capital in excess of $45 million to be used for the drilling program, allowing Providence to deepen the 53/6-1 exploration well to test the Drombeg prospect, and significantly reducing the company’s financial exposure to the drilling costs.
The farm-outs of interests in Providence’s Atlantic Margin assets are being done in accordance with Providence’s company strategy, the company said.
Read more:
Providence gets Barryroe extension
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