Steve Boldy CEO of Lansdowne Oil & Gas commented: We are delighted to have signed the Farm-out Agreement for the Barryroe field, which provides a clear path forward to production of oil and gas via the Early Development Programme.
Indigenous energy supplies for Ireland will become increasingly important in light of declining gas production from the Corrib Field and Barryroe will make a critical contribution as Ireland transits to a low carbon future. Lansdowne also supports fully the initiatives being pursued to evaluate Carbon Capture and Storage potential to accompany production. We look forward to working closely with EXOLA and SpotOn to progress the project to fruition.
Barryroe Update (SEL 1/11)
Farm-Out Agreement Signed
Lansdowne and Providence Resources P.l.c. (“Providence”) have agreed to Farm-out a 50% working interest in the Barryroe Oil and Gas Field to SpotOn Energy Ltd. (“SpotOn”), a Norwegian based resources company partnering with a Consortium of International Service Providers (together “SpotOn Consortium”) to fund, develop and produce the Barryroe Oil and Gas Field.
The Barryroe Oil and Gas Field lies c. 50 km off the south coast of Ireland in shallow water (c. 100 m water-depth) and is one of the largest undeveloped oil and gas fields offshore Europe, with independently audited 2C resources of 346 MMboe and significant further resource potential in additional reservoirs.
The SpotOn Consortium will fund 100% of the Early Development Programme (“EDP”) and the Full Field Development.
The EDP, which includes four wells and floating production facilities, is designed to both appraise and produce the Barryroe Field, generating the technical data required to optimise the Full Field Development Programme.
The SpotOn Consortium holds the experience, financial wherewithal and expertise to move ahead with the Barryroe project.
SpotOn will finance Lansdowne and Providence’s 50% share of the EDP costs by way of a Non-Recourse Loan, which is secured against future Barryroe Production Cashflow
Lansdowne Oil & Gas plc (AIM: LOGP), the North Celtic Sea focused, oil and gas company, is pleased to provide a commercial update on Standard Exploration Licence (“SEL”) 1/11 which includes the Barryroe oil and gas field. Lansdowne holds a 20% interest in SEL1/11 through its 100% owned subsidiary, Lansdowne Celtic Sea Limited, with EXOLA DAC (“EXOLA”), a wholly owned subsidiary of Providence Resources, holding the remaining 80% and being Operator of the Licence, collectively the “Barryroe Partners”. SEL1/11 lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.
