Providence extends farm-out process as talks continue with SpotOn

Ireland-based resource company Providence Resources updated the market on the farm-out of the Barryroe licence to SpotOn Energy on Friday, reporting that it was still finalising terms.

The AIM-traded firm said that, in order to facilitate full completion of the farmout documentation, it had agreed to extend the exclusivity period to 30 November.

“Despite the ongoing Covid constraints, we have made excellent progress in agreeing farmout terms, for an interest in Barryroe, to SpotOn Energy, and are working very closely with them to finalise the agreement documentation,” said chief executive officer Alan Linn.

“The farmout is structured to ensure that the development is fully funded and includes an early development scheme work programme for the Barryroe oil and gas field located in Standard Exploration Licence 1/11.

“It is important that the partnership agreements and work programme are comprehensively documented and this process requires some additional time to complete.”

At 1004 GMT, shares in Providence Resources were down 14.2% at 5.88p.