Providence says 'no material change' to outlook despite Barryroe speculation

Monday 20 January 2014 17.43
Providence Resources issues statement on media speculation
Providence Resources issues statement on media speculation

Exploration firm Providence Resources said that it has noted recent press speculation that farm-out talks about its Barryroe oil field are not progressing to plan.

In a statement today, Providence said there has been no material change to the outlook presented at its end of year statement in December on the status of the farm-out talks.

"Providence's strategy for the future appraisal and development of the Barryroe oil field is to co-venture with a suitable financially and technically capable third party," the statement added.

Providence said it is currently in talks with "major Asian, European and North American oil companies". 

"Further updates in relation to the Barryroe farm-out will be provided via Providence RNS as and when appropriate," the company concluded.

Its shares fell 8.4% in Dublin trade today.

Earlier, Providence Resources said it had secured a follow-on exploration licence for its Drombeg prospect, 22 km off the coast of Co Cork.

The company said that 3D seismic survey planning had started, adding that the survey will be used as a tool to allow for further exploration risk mitigation, together with well planning. 

Providence said the results of the nearby Dunquin North well confirmed its "oil-prone model" for the area.

"In contrast with the Dunquin North target however, our existing 2D seismic data indicates that active hydrocarbon migration into Drombeg is occurring to the present day," the company's Technical Director John O'Sullivan said.