(MENAFN- ProactiveInvestors - UK) As Providence Resources PLC (LON:PVR) and Lansdowne Oil & Gas Plc (LON:LOGP) continue to seek a development partner for Barryroe, one City broker believes the farm-out process is set to accelerate.
Lansdowne, a 25% stake holder in the large as-yet undeveloped oil field, highlighted in its financial results statement that important hurdles have been cleared in recent months.
Notably a legal dispute with Transocean has been settled, meanwhile, both Lansdowne and Providence have respectively secured separate capital injections.
Perhaps more significant is the news that some of the world's largest oil companies are again committing to project's offshore Ireland.
Chinese state backed Nexen is just one name on an impressive list of oil majors securing acreage from the Irish government. The list also included the likes of ExxonMobil, BP, StatOil, Eni and Woodside.
Providence was already a first mover in these exploration waters, in Ireland's Atlantic Margin, but, in the Celtic Sea Barryroe remains its most advanced asset.
Heightened interest in Irish hydrocarbons spells good news for the project, according to Cantor Fitzgerald analyst Sam Wahab, who has Lansdowne as a 'buy'.
'Renewed sector interest could accelerate farm out of Barryroe - The 2015/16 Atlantic Margin licensing round saw considerable interest from the industry as majors and independents looking to secure acreage counter-cyclically,' the analyst said in a note.
With a 7.5p price target Wahab sees huge upside to Lansdowne's current price. On Monday, Lansdowne shares rose 8.26% to end the session at 1.25p.
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