Providence offers vague response to Barryroe farm-out reports

Ireland-based development company Providence Resources responded to recent media speculation over the status of farm-out discussions with SpotOn Energy on Friday.

The AIM-traded firm said the speculation was in relation to standard exploration license (SEL) 1/11, which contains the Barryroe oil and gas field.

According to the Business Post in Ireland, the company had finalised a deal to farm out a stake in Barryroe to Norwegian conglomerate SpotOn, with an announcement due “in the coming days”.

The Business Post said a deal was due to be completed by the end of October, but Providence confirmed an extension of its exclusivity period with SpotOn last month, to 30 November.

On Friday, however, Providence Resources gave no indication as to the accuracy of the report.

“Providence confirms that it remains in exclusive discussions with SpotOn in relation to a farm-out of SEL 1/11, and will update the market in due course and as required,” its board said in its short statement.

At 1152 GMT, shares in Providence Resources were up 5.59% at 7.55p.