LONDON (Alliance News) - Providence Resources PLC Tuesday confirmed that it is in commercial discussions with a number of interested third parties in relation to the development of its Barryroe oil field.
The Irish oil and gas exploration and development company said it was confirming the talks following media speculation concerning farm-out discussions for the Barryroe site, which is located in the North Celtic Sea Basin, offshore Ireland.
The Independent said earlier on Tuesday that it had learned that Providence Resources is close to securing a USD300 million investment in the Barryroe project with a major American operator.
The company said the nature of the discussions involve the evaluation of the field on a phased development basis, with plans to establish an early production phase, to be followed by further phases of field appraisal and development, designed to steadily increase production rates to maximise the returns from the field.
Providence said that any development programme would be dependant on certain regulatory approvals and there can be no certainty that any deal will go through.
A recent independent report on the Ballyroe asset found that there were some 311 million barrels of recoverable oil on the site.
Providence Resources shares were up 8.8% to 198.00 pence, putting it in the top AIM ALL-Share risers Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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