Ireland: Providence presses on with Barryroe drilling plans
Irish oil and gas company Providence Resources has decided to push forward drilling plans of the Barryroe oil discovery offshore Ireland, despite the farm-in talks not progressing as planned.
Barryroe lies in standard exploration licence (SEL) 1/11 operated by Providence’s wholly owned subsidiary Exola DAC which holds 80 percent interest, with Lansdowne Celtic Sea Limited holding the remaining 20 percent interest.
The area lies in around 100 metres of water in the North Celtic Sea Basin and is some 50 kilometres off the south coast of Ireland.
Providence said on has been in farm-in discussions with potential partners but to date, no deal has been made.
“Whilst discussions continue, the Board has taken a decision to advance drilling at Barryroe. Noting the significant value attributable to Barryroe and prevailing low rates for rigs and associated offshore services, we have moved forward with planning for drilling and possibly a side-track,” Tony O’Reilly, Chief Executive Officer said.
“Last month, we issued a request for expressions of interest for the supply of a mobile offshore drilling unit and have started the consent process for drilling,” Mr O’Reilly said.
According to the company’s first half 2017 report, the first well will be drilled in the second half of 2018 or the first half of 2019 with revised well cost estimates for a single vertical well at around US$20 million.
It is worth reminding that the partners were recently awarded a two-year extension to the term of the First Phase of SEL 1/11 to July 2019 and overall term to July 2021 by the Minister for Communications, Climate Action & Environment of Ireland.