Providence boosted by well update
Published 10/02/2012 | 05:00
PROVIDENCE Resources shares rose after the explorer issued a bullish update on its Barryroe appraisal well off Cork.
The Dublin-based exploration company said it had successfully accessed both an upper gas field and a reservoir target lower down in the sea bed.
Providence is aiming to prove commercial flow rates from Barryroe and create Ireland's first commercial oil field. It has only drilled so-called appraisal wells so far but will soon prepare to drill exploration wells which yield more information.
Providence is the operator of the block with 80pc, while Lansdowne Oil & Gas owns the rest. Shares in both companies rose after the news. Providence gained 8.7pc in early trading but eventually closed up 6.4pc at €3.30 in Dublin. Shares in Lansdowne rose as much as 10pc before closing up 5.1pc at 31.4p in London.
Discovered in the 1970s, Barryroe has previously produced oil but not enough to make drilling economical.
"We have met, and probably exceeded, expectations in the Barryroe well," said chief executive Tony O'Reilly. Providence will soon begin drilling in the Dalkey Island prospect off Dublin and Rathlin Island.