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(Sharecast News) - San Leon Energy updated the market on the Barryroe oil and gas field on Tuesday, confirming that Providence Resources had entered into a farm-out agreement for the licence covering Barryroe.
The AIM-traded firm said the agreement was entered into with SpotOn Energy, a Norwegian-based resources company, which had partnered with service providers Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS and Aibel for the development of Barryroe.
San Leon said it retained a 4.5% net profit interest over the Barryroe field, which it described as "one of the largest" undeveloped discoveries in Western Europe, with independently audited 2C resources of 346 million barrels of oil equivalent, and "significant" further resource potential in additional reservoirs.
"The farm-out agreement reached by Providence Resources and Lansdowne with SpotOn Energy and its consortium of international service providers is excellent news for San Leon," said chief executive officer Oisin Fanning.
"The farm-in partners are of the highest calibre and have all the requisite skills to bring a project of the scale of Barryroe into production."
Fanning said San Leon stood to benefit from "every barrel" of oil produced from Barryroe.
"Given the focus of the upcoming early development programme is on expediting and growing initial production, the proposed programme should prove highly beneficial to San Leon."
At 1341 GMT, shares in San Leon Energy were down 3.14% at 22.52p.
6 May 2016 17:34