Ireland has recently discovered we are sitting on a load of oil, just off the coast of Cork.
Providence Resources (80%) & partners Lansdowne Oil and Gas (20%) are the soon to be stinking rich drilling companies that have found the well. New and final testing estimates suggest that the well could produce up to 3,514 barrels a day and at $105 dollars a barrel somebody is going to get rich($368,970 rich a day).There is also a gas reserve present and both are proving to be far more productive than original estimates. Providence Resources and Lansdowne Oil and Gas company originally put 500 million into drilling off the Irish coast in 2011 making it the largest drilling operation ever to take place off the Irish coast. The oil and gas were found 50 kilometers off the coast line and at 100 meters depth in Barryroe drilling field.
Providence Resources also have a number of other oil drilling contracts in Ireland including, Hock Head,
Dunmore, Helvick and Ardmore. All of these drilling sites have been drilled before and tested positive for oil. However in the 1980’s when the wells were drilled the technology was not available to extract the oil. Providence have taken advantage and are about to hit the jackpot.The extremely positive side of this is the tax it is going to create for the county if handled correctly. Tax on the extract of a national resource is at 25% at the minute. So if every thing goes to plan and 3,514 barrels are extracted a day this could mean $92,242.5 in
tax to the Irish government a day or 33.7 million a year. That is if it is done correctly.Providence oil company in 2011 started an off take agreement with Shell Trading and Marketing.
Even though oil and gas are two fuels we should be moving away from, it is great to hear Ireland getting a break.