Providence Resources signs amended Farm Out Agreement for Barryroe

Business, Economy, Energy | Fri 21 Sep | Author – Business & Finance
Tony O'Reilly Providence Resources
Tony O’Reilly, CEO, Providence Resources

Providence Resources, an oil and gas exploration company, provides a commercial update on Standard Exploration Licence 1/11 that contains the Barryroe oil accumulation

The updated Farm Out Agreement provides for a fully cost-carried firm programme comprising of the drilling and testing of four vertical wells and one horizontal sidetrack, plus the optional drilling of two additional horizontal wells, together with cash advances to EXOLA (a wholly-owned Providence subsidiary) for certain agreed project and operational costs such as well site survey acquisition totalling $19.5 million. Drilling will commence in 2019.

Commenting, Tony O’Reilly, Chief Executive Officer of Providence Resources said:

This drilling programme is a significant step forward for Barryroe as it is designed to provide modern dynamic data that will assist in the field development to production. Importantly, the structure of the farm-out transaction means that Providence has no upfront risk or capital exposure for the drilling programme, whilst also providing a roadmap to take this project, subject to the results of the drilling and subsequent regulatory consents, to project sanction and then on to production.

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