Providence shares rise on Barryroe deal
Published 08/08/2014 | 02:30
Shares in Providence Resources advanced after the company announced it had secured an extension to the exploration phase of the Barryroe licence.
The exploration firm said that following agreement with the communications minister, the licence has been extended by a year until July 2015.
Providence also announced that the minister had given permission for a change of operator from Providence to Exola Ltd, a Providence subsidiary.
It also said it was going to carry out seismic work which will involve a large survey in the Goban Spur basin 260km off the southwest coast.
Job Langbroek, Davy analyst, said the point of the extension and operator change was to provide more flexibility in the farm-out discussions and the commercial discussion surrounding Barryroe.
"A brace of announcements from Providence Resources shows the group's commitment to the Irish offshore," Mr Langbroek said.
"The seismic work in particular will provide a very interesting regional seismic plot when it is tied in with the Drombeg survey and other wells in the area including Dunquin North."
Shares were up more than 5pc by mid afternoon yesterday in London trading.
Chief executive Tony O'Reilly said the change had been made in order to facilitate ongoing commercial discussions.
"We are very pleased to receive these procedural extensions to our Barryroe licensing authorisations," he said.