Providence Resources PLC terminated the Barryroe license (SEL 1/11) farm-out agreement with SpotOn Energy and is pursuing alternative funding to finance the early development scheme (EDS). The farm-out was terminated because key financing conditions were not met.
Barryroe—in the North Celtic Sea basin about 50 km off the south coast of Ireland in 100 m of water—is one of the largest undeveloped oil and gas fields offshore Europe (OGJ Online, Dec. 1, 2020).
The EDS project will include three production wells with horizontal completions into the A-sand reservoir, one water injection well into the A-sand reservoir, subsea production trees with manifold, and umbilicals tied back to a leased FPSO. Processing capability will include oil-water separation, gas injection-power generation, and flow assurance.
EDS is based upon the economic recovery of 48 million bbl oil or 16% of the independently assessed 2C resources within the license area.
Providence has government approval to undertake an offshore site survey at the K-site location. The work is scheduled to be complete before end 2021 ahead of a planned drilling program during second-half 2022. The drilling program will require a completed environmental impact assessment report as well as regulatory approvals before operations can begin.
Barryroe partners are pursuing a development and financial model which includes payment deferrals by individual service providers on equivalent or better terms, and a Nordic bond issue. Work to progress the funding solution is advanced and expected to be concluded third quarter’s end.
SEL 1/11 is operated by Exola DAC (80%), a wholly owned subsidiary of Providence, on behalf of partner Lansdowne Celtic Sea Ltd. (20%).