Providence Resources PLC (AIM:PVR, OTC:PVDRF) said it plans to proceed with a 2023 appraisal well for Barryroe project, offshore Ireland.
It would tee up a timeline for production to start in 2026, subject to the appraisal result. Meanwhile, the appraisal plans remain conditional upon a government green light in Dublin.
Providence noted that it now has a clear understanding as to the funding requirement for the initial development of Barryroe’s central area and said that fresh equity funding will be required this year to finance next year’s well.
“The board is confident that there is an attractive economic and technical case for moving forward with our plans to optimise the value of the Barryroe field,” said executive chairman James Menton.
“At this time, the board's main focus is on securing ministerial consent for the Lease Undertaking as a matter of urgency.
“The board is confident that Barryroe offers a highly valuable resource that can contribute meaningfully to Irish energy security and will have a crucial role to play in Ireland's energy transition. This is in addition to the related economic contribution."
In regard to its application into the Irish government, Providence noted that it had written on two separate occasions to Ireland’s minister for environment, climate and communications Eamon Ryan.
Given that seven months of the potential four-year lease undertaking has elapsed, there is a need for urgency in granting Ministerial consent, Providence added.