Ireland: Providence terminates farm-out agreement with SpotOn Energy for the Barryroe Licence
22 Apr 2021
Providence Resources, the Irish based resource development company, has
terminated the farm-out agreement with SpotOn Energy for the Barryroe Licence and is progressing arrangements for an a
lternative funding package to finance 100% of the costs of the early development scheme ('EDS') for the Barryroe license (SEL 1/11).
The Barryroe partners have terminated the farm-out agreement with SpotOn because key financing conditions were not met. Providence will now lead the project development and funding arrangements.
Building from the many positive elements of the SpotOn project development and financing model, the Barryroe partners are pursuing a similar development approach, including payment deferrals by individual service providers on equivalent or better terms and a Nordic bond issue. This revised approach will enable Providence to participate in a much greater share of the value of the Barryroe asset than was proposed under the SpotOn structure.