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I wonder, Bronxville, with your attitude whether you should be in Providence. Perhaps you are just being contrary for the sake of it.

There is no comparison between Barryroe and Corrib other than to see that 10% cost of Corrib as a development cost of Barryroe is a vast differential.

Barryroe has 200billion cubic feet of gas which equates to 35mbbls so 1trillion cubic feet, which Corrib has, equates to 175mbbls. So, simple sums, basic Barryroe with 354mbbls of oil equates to two Corribs without the gas. If, as they suspect, there is far more oil in Barryroe than 340mbbls, paying $300m in comparison to Corrib's $3.5billion is a snip.

Remember, Corrib had to build a tunnel for the pipes and had to build a processing plant at Ballinaboy along with all the issues it had with the locals who caused untold issues to delay its implementation.

None of those issues apply to Barryroe. There is an infrastructure beside it to handle the gas and there is Whitegate to handle the oil, both of which are already in place. How much does that save the process? And the natives of Cork will only be too happy to see an oil industry grow up again and Whitegate revitalised which means there will not be any NIMBY issues to eat up costs.

When you consider that Corrib cost over $3.6billion to develop, a figure of 250-300mil for seven wells is not excessive given that the plan is not to just drill appraisal wells but side tracks with the potential for them to become production wells.

Not only that but "Three of the four wells will be drilled to the deeper Jurassic target underneath
Barryroe (by inference, the Lower Wealden and Purbeckian sections will also be intersected)" which means there will be four sectors in which oil can be found in a single well whereas the 340m barrels was only in the upper section.

Furthermore, there is still no talk of the gas where it claims there is 207 billion cubic feet of the stuff in Barryroe based on estimates on the first level. How much more is down at the lower levels? Of its own the amount estimated is quite substantial given that Corrib is estimated to have 1 trillion cubic feet but only gas and cost over $3.6billion to develop.

The other point worth noting about Barryroe is that the Judicial review by An Taisce is now down for the 15th of January.

If An Taisce loses that, there is no reason why Providence cannot do the survey in Q1 as originally planned with the drilling in Q2 but obviously at this point they have to work on the premises that An Taisce could win hence the withdrawal and the subsequent statement that they would put forward a new one.

I am sure the Department of Communications (etc) is not wildly excited by An Taisce seeking the Judicial Review against it in the light of the fact that the Department is one of the major contributors to An Taisce's funds since An Taisce is a Charity and if An Taisce were to lose and have to pay costs, most of the money would come from the Department anyway.

https://www.irishtimes.com/business/energy-and-resources/providence-postpones-its-survey-pending-a-new-permit-1.3716295

There is total confusion about this bill even if it were passed.

The bill deals with "new licenses" not those already issued. If it were for licenses already issued the Irish government would have to pay out millions because it costs oil companies money on a yearly basis to retain a license and some of these go back up to twenty years or more. All of that money would have to be paid back if those licenses were cancelled.

So all of the licenses in place have to be honoured. All this bill is saying is that no "new" ones can be issued. And if no oil was found in any of the current licenses who would bother continuing to look for it in new ones.

France is put up as a country that has passed a bill stopping exploration for oil and gas but it only comes into force in 2040. What a farce. A sure case of live horse, eat grass.

As for the tax on Barryroe over a sixteen years cycle which is obviously substantial hat only takes into consideration the 340mbbls. What is the life span if they discover multiples of that in the Lower Wealdon or the Purbeckian both of which are due to be drilled in the five (seven) wells scheduled for this year? It is reckoned there could be up to 1billion barrels of recoverable oil in all of that which would extend the life of Barryroe for up to forty years at an extraction rate of 70,000 barrels a day with a commensurate tax take to the Irish government over that period of time.

And for those who worry about the viability of Barryroe, remember the Chinese are no fools so why have we gone from one well drilled by Providence to three wells to five wells to potentially seven wells drilled by the Chinese in one fell swoop? Not on the back of a licked finger in the sky but surely on the basis on better seismic information and highly improved chances of success.

The end of year statement from last year was the first inkling of a deal with APEC.

I wonder what news this year's will give us?

Last year it was on 28th December so hope to hear by the end of next week at the latest.

Here is last year's epistle.

http://www.providenceresources.com/sites/default/files/Providence%20Resources%20P%20l%20c%20-%202017%20Trading%20Update.pdf

The market obviously likes the idea of an electricity generation system given the price rise.

And the whole idea, which at first seems like pie in the sky, is not as impossible as first appears. A contributor on ADVFN has pointed out that there are longer electric cables around Europe transferring electricity and with the new materials available which diminish power loss over long distances this could be a saviour of Moneypoint and a major boon to the Irish economy.

After all, Moneypoint is a major artery into the Irish electrical grid. If you close it down then a huge number of people will lose their jobs as it is the biggest employer in West Clare so there is a lot to be gained by having a permanent electrical generating source attached to it.

There are a number of electrical cable connectors between different countries as ADVFN pointed out such as Norway to Holland but there is also connectors between Holland and the UK under the European super grid project.

Check it out at:

https://en.wikipedia.org/wiki/BritNed

Geothermal generation of electricity is very well developed technology in many parts of the world not least in places like Iceland so it is quite feasible that a geothermal system could be developed in Dunquin North.

The article says they found the boiling water at a depth of 3,000 metres whereas the actual drill site at Dunquin was actually drilled down to 5,000 metres; in other words a further two kilometeres down below the boiling water.

The real issue is the cable to run from Dunquin to the Moneypoint generating plant in Clare and at what a cost. After all, the Irish Government spent over £700m on developing Moneypoint in the 1980s and now they should shut it down because it is still mainly coal fired and is one of the major contributors to Ireland not reaching its renewable targets by 2020 or 2030.

So, if the cost of the heat exchanger and the cable to Moneypoint can be less expensive than closing Moneypoint down then surely this is a major solution to both Ireland's environmental issues as well as a guarantee of renewal energy given that this year Ireland failed to produce any amount of wind electricity as it had no wind for about three months.

So, will be worth watching as a solution to Ireland breaking its renewable targets is going to cost it millions of euros over the next number of years if it does not change which would probably pay for the whole project in Dunquin North the cost of which should be bourne by the Irish Government and the EU development fund.

Check the following which says Moneypoint should be closed by 2025.

https://www.clare.fm/news/harty-calls-viable-plan-future-moneypoint/

Interesting times ahead.

Article in today's Irish Independent says Providence has found billions of barrels of hot water in Dunquin North.

They claim there is potential to turn it into an energy source by using it to drive a heat exchange turbine on the seabed.

Will it add anything to the share price?

https://www.independent.ie/business/providence-finds-boiling-water-with-electric-potential-3km-below-seabed-37628406.html

How is it that Ocean Observer is happily surveying the coast of Norway but will have problems with surveying an area of the Celtic Sea?

Is it because Norway is not a member of the EU but is a member of the EEA? But what difference does that make? Well, look at the following statistics.

"The EEA agreement grants Norway access to the EU's single market. From the 23,000 EU laws currently in force,[2] the EEA has incorporated around 5,000 (in force)[3] meaning that Norway is subject to roughly 21% of EU laws. "

Now, critics seem to think that the Department of Communications can be totally cognisant of 23,000 laws and does not always get it right. This issue just shows that EU law is a quagmire devised by bureaucrats who have nothing better to do than worry about such things as "bent bananas" etc.

There is a big difference between ignorance and nescience. Ignorance is where you do not know something but you should; nescience is where you do not know something and you should not necessarily be expected to. I believe the Department's error lies in the second and once they are aware of what is wrong it can be put right.

That is why Providence has withdrawn its application as it waits for the Department to issue a new one with An Taisce's claims duly ignored or remedied.

As regards the license in Dublin Bay, namely Kish, this has not been surrendered by Providence. In its latest report on operations you can read that:

? KISH, Kish Bank Basin (SEL 2/11)
- Ministerial consent granted to extend the 1st phase of SEL2/11 to August 2018 and an overall extension of one year to the license term to August 2020.

In other words, Kish is still well and truly on the cards for Providence.

Bronxville,

I am happy that you are acting as devil's advocate in this issue but the reason why Providence withdrew their granted application was to speed up the process so that the An Taisce issues could be put to bed, if they were valid, by amendments by the Department.

While we have been skirting around the issue does anybody actually know on what grounds An Taisce claim the granting of the permission was illegal and exactly what EU directives were broken? I have been unable to find any reference to those other than An Taisce says there were breaches of EU directives. What exactly were they?

They claim they were "impact" issues. Perhaps that applies to checking if they might disturb some prawns or crabs when they use sonar or seabed analysis tools? Who knows. Does anybody out there? If so please tell us.

After all, the work Providence did on Druid and Drombeg was far more complex than anything which could apply to Barryroe. But we should remember that Providence pulled the Kish appraisal at the request of the Department when it was found that the Department had not complied properly then with those pesky EU Directives.

So, if anybody actually knows what An Taisce's gripe really is can they please tell us or is it, as I suspect, just another load of hot air.

It is quite clear, Bronxville, that you have got the wrong end of the stick.

It is clear from the proceedings that An Taisce claim that the Department of Communications got something wrong in the details associated with giving Providence permission to do the survey. I does not say that Providence did anything wrong.

So, if this is correct, the Department and An Taisce will go into court and will have a to-do that could go on for years with each side claiming they are right which is just what happened with Corrib and took years to resolve.

So Providence says lets drop that approval and start again taking into consideration what An Taisce are not happy about and now the Department can either include their worries or it can issue a new approval taking due cognisance of the European directives that An Taisce are worried about and whether or not they need to be complied with.

That should probablly take weeks and then Providence can carry out their survey without An Taisce sticking its nose in or even with the agreement of An Taisce that the European directives have been complied with.

Good move Providence, I say and this just proves once more that the law is an "ass".

Providence has made it clear that the issue is between An Taisce and The Department of Communications, Climate Action and Environment and that is clear from the Proceedings.

If that is the case, and there is a delay then surely Providence, who are an innocent party, will be due compensation as the granting of the license and whatever may be wrong with it was not their fault.

It will be interesting to see what transpires on 11th December.

Brid Smith has some very strange ideas backed up by the Irish Green party.

They both think that Ireland can survive without oil or gas as the comment by Ryan, leader of the Green's made clear when the The Petroleum and Other Minerals Development (Amendment) Climate Emergency Measures Bill 2018 — drawn up by People Before Profit TD Bríd Smith — was debated in the Dáil on Feburary 7th 2018.

When debating the bill, Mr Ryan said Ireland no longer needs oil or gas and there is no risk to security of energy supply by not using what lies under our own waters. I wonder where he thinks the energy used in cars, planes and product generation comes from? Electricity of course. And where does electricity come from? If it is not from oil and gas then it is from wind farms and solar.

But 2018 was an interesting year in Ireland. There was no wind for about three months so no wind electricity generation and as regards solar, Mrs. Brown had the answer to that when she confronted the Mormons. When talking about Noah's Ark (Norman she called him) she said "It rained for 40 days and 40 nights. In Ireland we call that a summer."

Then you have the definition of Ireland as the "Data centre capital of Europe". Where does all the electricity to drive those come from? It is anticipated that Apple's data centre in Galway would alone use about 8.2% of all the electricity produced in the country. And recently "Eirgrid recently projected that by 2027, as much as 31pc of Ireland's electricity could be powering data centres."

No wonder Brid Smith is changing her tune.

At least the Irish Times has put a proper perspective on what is at issue.

As part of the development plan for Barryroe Exola has been given permission to survey the area with a view as to where best position the seven wells. As it said in the 20th September announcement that:

"Planning for the drilling of these wells is already advanced, together with the consenting of the recently contracted Gardline "Ocean Observer" vessel to carry out the well site survey operations during Q4 2018, subject to regulatory approval;"

Obviously the "regulatory approval" has been given and it is this which An Taisce is objecting to.

An Taisce is saying that the department has not complied with EU regulations regarding the granting of the survey. In fact, the comment says: "However, Providence pointed out yesterday that An Taisce’s High Court action does not affect the legal standing of the oil and gas exploration licence granted to Exola.

So another load of hot air from An Taisce and I am sure the department of communications, which is its pay master, will not be too happy with being accused of failing to do its job properly as once more those mandarins in Brussels stick their noses in.

The actual details of An Taisce's complaint was only published yesterday and there is an adjournment until 11th December. Sparse details can be found at:

http://www.antaisce.org/articles/judicial-review-by-an-taisce-against-dccae-for-granting-oil-and-gas-exploration-licence-to

I am not sure how you come to the conclusion that Bruton, replacement for Naughton (replaced after he was accused of potentially having his hand in the cookie jar) could be forced to revisit drilling and offshore exploration..

The debate in the Dail the other day did not say anything about Leo affirming the green plan to meet low emisions target. Rather, he was agreeing that Ireland would have to pay more emissions taxes over the next years because they would not meet the 2020/2030 targets as they exceeded the use of coal, gas and oil.

In fact, Ireland has a load of emission tax rebates from the last ten years when the Celtic Tiger was lying on its back that they have enough to cover the next number of years.

In fact, Leo's response to the Green Party was that "the international carbon emissions targets would inevitably mean dearer coal, gas and electricity." There was nothing in the statement to say it would reduce the use of any of those and we know Irish oil and gas would assist that extra cost if it was indigenous rather than being imported.

Check out the actual debate as defined in the Indo as of today. at:

https://www.independent.ie/irish-news/politics/dil-in-chaos-as-varadkar-and-martin-argue-like-children-in-carbon-tax-increase-racket-37551719.html

I don't know where Business Post got its information from but if there was any truth in it you would see it being discussed in the website "Shell to Sea" which has spent its time criticising all oil and gas exploration with certain emphasis on Corrib gas and Shell.

Check it out at http://www.shelltosea.com/ and you will see no reference to An Taisce.

A load of codswollop.

I agree with Bronxville and reckon some trainee reporter did a Google search and came up with the 2013 which halted the Providence Kish llicense.

But the reason why it was stopped was not because Providence had done something wrong but there was an error in the European law which should have been complied with so Providence put the license on hold at the request of the Department of Communications.

An Taisce is a voluntary charitable organisation partly funded by the Department of Communications which is the one which actually awards oil and gas licenses.

And if you go to there website at the following link which checks on what they said about Providence you would see that the 2013 was the last reference it made to Providence.

Another bit of c**p to fill out a Sunday paper when there is nothing better around. To paraphrase the old film "Always on a Sunday"

If you can find out anything different to this let us know but in the meantime check out:

http://www.antaisce.org/search/node/providence%20resources

agreed.

TOR has always said extraction costs would be $25 a barrel so $40 a barrel would still give a nice profit.

I suspect we will see the price hovering at or about 3p until the New Year.

Traders always work on a calendar year and their bonuses are paid on a calendar year performance so buying now would not make them a lot of money before the end of this year but buying from January on could generate very nice profits during 2019.

That is why the stock market always does well in the first quarter of the year and hopefully next year will be no different.

TOR's end of year statement will be interesting reading unless we hear something more beneficial in the meantime.

Being more specific about the gas infrastructure, the Barryroe field actually lies directly below the Seven Heads Gas Field which is a separate gas field connected to Kinsale Head from which the gas is piped to Cork.

The anomaly with Barryroe is that Seven Heads goes down to 4,000 feet and Barryroe continues on down from the 4,000 ft line. In fact, Seven Heads, when discovered in 2003 was expected to produce about 300bcf of gas but to date has only produced 34bcf and will be exhausted by 2020. Production must stop one year before decommissioning so gas will probably stop flowing in 2019 if any is left.

It should also be noted that the gas from Seven Heads actually contains some oil which is separated and is shipped to Cork. However, Kinsale Head is not set up for combined gas and oil so there would have to be a process to separate the gas and the oil if Providence was to take it over which would be a substantial cost.

There is a line in the decommission document, however, which is very interesting. It says " There are a number of appraisal wells planned in the Barryroe field and the 18” pipeline from Seven Heads to Kinsale Alpha, could be used for export of associated gas from a potential development of that field".

Obviously Petronas has to carry the cost of the decommissioning so if Providence actually took over any infrastructure that would actually be a financial benefit to Petronas so they would actually have to pay Providence. What that would amount to is probably one reason why gas is not being talked about.

There was a Wood McKenzie report produced on Seven Heads in June of this year where it is titled "upstream-oil-and-gas-seven-heads"To read the report will cost you $2,300 but the title is interesting as it refers to both gas and oil and the report summary, which is free at the following link, is worth reading.

https://www.woodmac.com/reports/upstream-oil-and-gas-seven-heads-2332419

JH77,

You actually make a very interesting point that might have been missed.

You state "The outcome of the deeper reservoir drills could give this a serious uplift of course." but there is a discrepancy between what Lansdowne are saying about that and what Providence have stated.

Using the same graphic of the strata in Barryroe and adding the projected extra oil you will find, both agree on the general 346m barrels (although still not a word about the gas) as already historically defined but Lansdowne have estimated that two lower levels can bring this up to about 1.1billion barrels whereas Providence has defined four extra layers which can bring it up to about 1.8billion.

On that basis, you can see if Providence are correct and presumably the difference between the 1.1billion and the 1.8billion is due to the seismic and the analysis they have recently done we will really be on the pig's back whether we invest in LOGP or PVR at current prices.

What we need now is some news on the logistics of the drilling, the rig and the services which must be close as it is now only five months before we get to Q2 2019 and it takes time to organise those. Any news along those lines will surely help the share price of both. At worst, we might get a TOR end of year report as he has done in some years past with an "End Of Year Trading Statement". So. hopefully, in the new year the share prices of both will progress quite rapidly.