San Leon Energy PLC (LON:SLE) has said it is closer to seeing the monetisation of its historic investments in the Barryroe project, offshore Ireland, as Providence Resources PLC (LON:PVR) and Lansdowne Oil & Gas PLC (LON:LOGP) sealed a farm-out transaction.
The new farm-out deal with Norway’s SpotOn Energy - which is, in turn, teamed up with service providers Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS, Aibel – sets the project up for development. It comes after a prior transaction with a Chinese investor failed to close.
SpotOn will own 50% of the Barryroe field whilst Providence and Lansdowne hold 40% and 10% respectively. San Leon, meanwhile, retains a 4.5% net profit interest over Barryroe.
"The farm-out agreement reached by Providence Resources and Lansdowne Oil & Gas with SpotOn Energy and its consortium of international service providers is excellent news for San Leon,” said Oisin Fanning, San Leon chief executive in a statement.
“The farm-in partners are of the highest calibre and have all the requisite skills to bring a project of the scale of Barryroe into production. San Leon stands to benefit from every barrel of oil produced from Barryroe.”
Fanning added: “Given the focus of the upcoming Early Development Programme is on expediting and growing initial production, the proposed programme should prove highly beneficial to San Leon.
"I look forward to drilling operations commencing in 2022 as outlined and wish all parties the best of luck."