9th Jul 2014 07:43
LONDON (Alliance News) - Providence Resources PLC Wednesday said that the operator of its part-owned Spanish Point appraisal and exploration well off the coast of Ireland has postponed the well until 2015 due to rig refurbishment delays.
The Irish oil and gas exploration company said operator Capricorn Ireland Ltd, a subsidiary of Cairn Energy PLC, said the Porcupine Basin site will not be drilled in 2014 as planned.
Capricorn holds 38% of the site while Providence holds 32%.
Providence said the decision was made following extensive delays in the refurbishment of the Blackford Dolphin drilling rig, which had been scheduled to drill the well. The refurbishment meant that drilling operations would not be able to start until at least October, which is in the difficult to drill winter period.
"The postponement of appraisal drilling at Spanish Point is regrettable and beyond the control of the partnership," Providence Chief Executive Tony O'Reilly said in a statement.
As a result, Capricorn Ireland has advised that the rig contract has now been terminated and it is looking for another rig to carry out its planned well operations in 2015.
However, the company did note that Capricorn is continuing plans to carry out a 3D seismic survey of the Spanish Point South area this summer, subject to regulatory approvals.
Cairn Energy shares were down 0.5% to 192.80 pence whilst Providence Resources shares were down 7.5% to 129.00 pence, putting it amongst the top five AIM All-Share fallers during early trading on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PVR.LCapricorn Energy PLC