Irish based oil and gas exploration company Providence Resources has said it is working with a number of parties to progress the Barryroe farm out.

The explorer said it was “encouraged by ongoing discussions” and hoped to be in a position to update further in the New Year.

“Despite the continued fall in commodity prices, we have seen a marked increase in interest in our portfolio and work continues with a number of parties to progress the Barryroe farm out to a satisfactory conclusion,” Providence chief executive Tony O’Reilly said.

He added that a drop in costs, most notably drilling costs, which are now at a 7 year low, is helping to drive this activity.

In a trading statement published today, Providence said it continued its evaluation of the extensive 2D and 3D seismic data acquired in 2014 over a number of its key exploration prospects in the Porcupine Basin resulting in a series of important technical updates.

"In September, we entered into a strategic exploration collaboration agreement with Schlumberger, designed to unlock the potential of our licences in the southern Porcupine and Goban Spur Basins," Mr O'Reilly said.

The company expanded its participation in a number of licences offshore Ireland during 2015, including the acquisition of a further 26 per cent in Spanish Point, the acquisition of a further 4 per cent stake in Dunquin and an increase in its interest in Kish Bank to 100 per cent.

Providence, which is listed in Dublin and London, has a portfolio of oil and gas assets located offshore Ireland and the UK.