Exploration company Providence Resources has said that an appraisal well will be essential before embarking on an initial phased development of its Barryroe site offshore Ireland.
The company said that after a review of the site, off the coast of Cork, a realistic and pragmatic approach has been adopted by the board in the formulation of its Barryroe strategy.
This takes into regard the current regulatory environment, energy transition issues around security of supply and growing energy demand.
Providence said that development of its Barryroe technical strategy is progressing "satisfactorily".
"One of the principal preliminary conclusions from the technical review is that the key uncertainties impeding the future development of Barryroe could be substantially reduced by further appraisal drilling," it said.
Earlier this year, Providence decided to take control of its Barryroe development after Norwegian oil and gas company SpotOn was unable to meet the farmout conditions for the site, describing the the move an "important strategic moment" for Providence.
Providence's Barryroe project is the most advanced and appraised oil project offshore Ireland.
The company also said today that all required technical and financial information in relation to the Barryroe Lease Undertaking, which requires Ministerial consent, has been submitted to the GeoScience Regulation Office (GSRO).
"The Board is confident that it has discharged all of its responsibilities and will continue to examine all options and act upon them, as required, to ensure that our shareholders' interests are protected," the company said.
James Menton, Executive Chairman, said the company's board is confident in both the process adopted and the skills, competencies and commitment of the new technical leadership team.
"Our preliminary conclusion is that an appraisal well will be essential before embarking on an initial phased development and the conclusions of the Barryroe Strategic Review will be communicated to shareholders by the end of January 2022," he added.
In October, Providence Resources CEO Alan Linn announced that he was stepping down from the company's board and all subsidiary companies in an unexpected move.
Mr Linn took up the CEO role in January of 2020 following the resignation of Tony O'Reilly who had run the company for about 20 years.
The company said today that it has initiated efforts to recruit a new chief executive.
