Ireland’s Providence Resources has announced its intention to commence drilling operations on its 48/24-JBarryroe well in mid-November.
The company has been awarded an exploration licence for Barryroe for a period of up to six years, split into two three-year phases.
The well location and programme have been finalised using new fast-track 3D seismic data.
Barryroe is situated in the North Celtic Sea Basin, offshore southern Ireland, and lies directly below the Seven Heads Gas Field. Providence holds a 50 per cent interest in the licence and operates on behalf of its partners San Leon Energy (which holds 30 per cent) and Lansdowne Oil & Gas (20 per cent).
The partners have committed to drilling at least one well during the first phase of the licence period.
Providence has also entered into a MOA with Shell Trading and Marketing to agree an oil offtake agreement for future Barryroe oil production.
Commenting on the news, Tony O’Reilly, Providence’s CEO, said: “This appraisal well is the first in Providence’s multi-well, multi-year drilling programme. In addition to being a very important confirmation well for the future development of the Barryroe oilfield, this well also heralds the renaissance of major drilling activities offshore Ireland.
“As the first well in more than 20 years to be drilled on this accumulation, we are fortunate to be able to avail of today’s technology and market conditions to advance this project and in doing so, endeavour to deliver the first commercial oil development offshore Ireland. We look forward to updating shareholders on the progress of this programme over the coming months.”
Providence’s portfolio of production, appraisal and exploration assets includes licence interests in Ireland (offshore) and the UK (onshore). In 2011, Providence announced plans to invest with its partners upwards of $500 million in the drilling of a number of exploration and development wells in six different basins offshore Ireland, representing the largest drilling campaign ever carried out offshore Ireland.
