Providence awarded licence to develop Baltimore oil field
IRISH exploration company Providence Resources has been granted a licence to develop a field off west Cork to produce so-called heavy oil. Shares rose 8.2pc to close at 3.9c in Dublin following the news.
The company, which raised £14.4 (€16.5) last week in a share placing, will now begin developing the oil field almost two decades after it was first discovered by Bula Resources but not developed for cost reasons.
Initial estimates suggest the Baltimore discovery, about 30km off the coast, could hold up to 300 million barrels. “We are pleased to have secured this licence,” said Providence chief executive Tony O’Reilly.
“We believe that the Baltimore oil accumulation deserves further review, given the current sustained higher oil pricing environment together with the recently announced progress on similar oil accumulations in the North Sea.”