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Providence Resources buffeted by shifts in Irish oil picture

Snapshot

  • Waiting for funds to start the Barryroe oil field development
  • US$10mln was expected, though there have been several delays
  • Owns a number of other interest in Ireland’s Atlantic margin
Drill ship

Quick facts: Providence Resources PLC

Price: 3.45 GBX

AIM:PVR
Market: AIM
Market Cap: £22.68 m
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How is it doing

Barryroe (once developed) will be Ireland’s first commercial offshore oil project.

Providence Resources PLC (LON:PVR) and Lansdowne Oil & Gas Ltd (LON:LOGP) lost patience with Chinese group APEC in October and took back the 40% agreed under a farm-in plan.

Providence is now free to enter agreements with other partners.

Dunquin and Drumbeg

In the Porcupine Basin, Providence owns a 26.8% stake in FEL 3/04, which hosts Dunquin South, with its partners in the venture Eni (operator), Repsol, and Sosina Exploration.

Providence is also exploring Drumbeg, a big exploration target located within Frontier Exploration Licence (FEL) 2/14, in the Atlantic Margin off Ireland’s west coast.

FEL 2/14 lies in 2,250 metres of water in the southern Porcupine Basin.

Providence and partner Total dropped the Druid exploration licence in October.

In November, Total also pulled out of the exploration licence that contained the Avalon prospect, FEL 2/19 leaving Providence with an 80% interest.

In December, founder and chief executive Tony O’Reilly resigned from his positon with immediate effect.

Chairman Pat Plunkett will cover the executive function on a temporary basis while the company recruits a long-term replacement.

It comes as the future of the Barryroe oil project is undetermined, with Providence frustrated by delays to payment from intended Chinese partner APEC.

Inflexion points

  • Ireland recently decided not to go ahead with the Climate Emergency Bill, which would have banned offshore developments
  • Start of new exploration and appraisal work at Barryroe
  • Results from ongoing programmes at other assets

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