Barryoe licence awarded by Irish energy ministry

19th Oct 2011 15:21

The Irish energy ministry has dished out a standard exploration licence for the Barryoe oil discovery in the North Celtic Sea basin to a consortium comprising Providence Resources, San Leon Energy and Lansdowne Oil and Gas.Licence 1/11, which has been awarded for a period of up to six years and is split into two three year phases, is a successor to licensing option 08/1. The area covered by the licence has been increased by around 9%, equivalent to 25 sq km, to cover additional acreage with identified resource potential.Providence Resources holds a 50% interest in the licence and operates on behalf of San Leon, which has a 30% interest and Lansdowne Oil & Gas, which has a 20% interest.An upcoming well, the 48/24-J well, which is planned for mid-November of this year, is set to demonstrate higher flow rates through the use of new technologies."In addition to being a very important confirmation well forthe future development of the Barryroe oilfield, this well also heralds the renaissance of major drilling activities offshore Ireland. As the first well inmore than twenty years to be drilled on this accumulation, we are fortunate to be able to avail of today's technology and market conditions to advance thisproject and in doing so, endeavour to deliver the first commercial oil development offshore Ireland," said Providence's chief executive officer, Tony O'Reilly. Oisin Fanning, executive chairman of San Leon said: "The higher oil price, new technology and location of Barryroe could certainly see this field being developed in the not too distant future. The share price of Providence was trading at 160.5p, up 0.75p on the day, in afternoon trading. Lansdowne's shares were down one-eighth of a penny to 30-1/8p, while San Leon fell a halfpenny to 14.75p by 15:29. NR