Providence increases Barryroe stake

Oil and gas exploration firm Providence Resources has increased its interest in a licence off the Republic’s south coast.

The company said it has signed an agreement with San Leon Energy that increases its equity in the Barryroe licence from 50 per cent to 80 per cent.

Under the terms of the agreement, San Leon will receive a 4.5 per cent net profit interest in the licence, in exchange for Providence assuming its 30 per cent working interest in the licence.

Lansdowne Oil & Gas will retain a 20 per cent interest in the licence.

"This transaction makes perfect strategic sense for both companies, allowing each to focus on their respective core areas," said Providence chief executive Tony O'Reilly. "Providence remains firmly focused on its Irish portfolio, with the Barryroe appraisal well being the first well of its multi-year, multi-basin drilling programme."

The company began appraisal drilling in Barryroe this year and recently issued an update saying that it was close to reaching the area’s main oil-bearing reserves. It expects to complete appraisal drilling next year.