Providence lifted by drill results in UK
Published 19/10/2010 | 05:00
OIL and gas explorer Providence Resources was lifted yesterday after the company said it had completed initial drilling operations at a site in the UK.
Shares in the Dublin-based company gained nearly 2pc in early trading after it said it had completed drilling operations on a development well at the Singleton Field in southern England.
Oil quality at the well was better than estimated, with "reservoir quality and hydrocarbon saturation within the payzone [exceeding] expectations".
Drilling at the X11 development well encountered some 2,081ft of gross hydrocarbon bearing interval with 1,784ft of net pay. Providence has a 99.1pc share in the well.
Providence said it will now begin the second part of its drilling programme at Singleton for this year, which involves the drilling of the X8x multi-lateral wells.
Providence's technical director John O'Sullivan said the X11 well had provided "great" results.
"The results from the horizontal well have exceeded our expectations and is a great fillip to us as the drilling was completed under budget and was a challenging project for a company of our size. It's definitely an encouraging development for us," he said.
"On a day-to-day basis, this development is very positive as it magnifies the monetary value of the company and the well," he said. "On the macro side, however, it is also great news. We bought the well in 2007 and this is one of many opportunities that we are looking to redevelop."
Apart from Singleton, Providence holds many interests off shore, mostly in Irish waters.