Irish Examiner

Prov­i­dence aim­ing to fast-track Bar­ry­roe oil and gas pro­duc­tion

- Ge­off Per­ci­val Business · Investing · Energy · Industries · Providence · Cork · Ireland · Providence Resources

Ir­ish ex­plo­ration com­pany Prov­i­dence Re­sources is aim­ing to fast-track pro­duc­tion at its flag­ship Bar­ry­roe oil and gas field off the Cork coast and is con­fi­dent of hav­ing de­vel­op­ment part­ners for the project for­mally in place within the month.

Chief ex­ec­u­tive Alan Linn said Prov­i­dence’s am­bi­tion is to bring Bar­ry­roe to pro­duc­tion stage as early as pos­si­ble, say­ing that is what the field needs. He said the com­pany now favoured drilling a num­ber of pro­duc­tion wells in­stead of fur­ther ap­praisal test wells.

Bar­ry­roe could reach pro­duc­tion within 18 months, but gain­ing Gov­ern­ment ap­proval, and meet­ing reg­u­la­tory stan­dards — in­clud­ing an en­vi­ron­men­tal im­pact as­sess­ment and rig ap­proval — could still heav­ily de­lay work.

Mr Linn said Prov­i­dence’s al­ready agreed Bar ry­roe farm-out deal — which will see a con­sor­tium in­clud­ing Nor­we­gian com­pany SpotOn En­ergy and oil­field ser­vices gi­ant Sch­lum­berg er buy con­trol of and de­velop the project — should be for­mally com­pleted by the end of Oc­to­ber.

He said he is con­fi­dent the Gov­ern­ment will ap­prove that deal and the pro­duc­tion

plan, on the grounds of Bar­ry­roe be­ing “a project of na­tional im­por­tance” at a time when Ire­land is im­port­ing 100% of its oil and nearly 70% of its gas re­quire­ments.

“En­ergy se­cu­rity is es­sen­tial for a strong econ­omy,” Mr Linn said, adding that Bar­ry­roe can make “a sig­nif­i­cant con­tri­bu­tion” to the Ir­ish econ­omy and de­liver di­rect long- term fi­nan­cial bene­fits and em­ploy­ment to Cork. It is ex­pected that the

new con­sor­tium will take a 50% stake in Bar­ry­roe, with the re­main­der split be­tween Prov­i­dence and ju­nior part­ner Lans­downe Oil and Gas.

Mr Linn said Prov­i­dence is now fully funded up to July of next year, fol­low­ing its emer­gency €3m cash raise in April, and has no need to tap share­hold­ers for more funds.

An ex­er­cis­ing of war­rants by in­vestors ear­lier this week raised a fur­ther

€540,000 for the com­pany. If all re­main­ing war­rants from April’s share sale are ex­er­cised by in­vestors Prov­i­dence could re­alise a fur­ther €23.5m in fund­ing.

Prov­i­dence posted a €9.2m loss for the first half of this year, up from a loss of €5.5m for the same pe­riod last year and driven by fi­nanc­ing ex­penses. Cost- cut­ting moves helped re­duce its first- half op­er­at­ing losses from €5.3m to €1.1m.

 ??  ?? Prov­i­dence Re­sources is look­ing to trans­form Bar­ry­roe, off the Cork coast, into a pro­duc­ing oil and gas field quicker than ex­pected.
Prov­i­dence Re­sources is look­ing to trans­form Bar­ry­roe, off the Cork coast, into a pro­duc­ing oil and gas field quicker than ex­pected.

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