Providence soars on price forecast
SHARES in oil and gas explorer Providence Resources surged yesterday after a leading analyst said the company could triple in value.
Andrew Whitlock, of Liberum Capital, put a 650p target price on Providence, far above the 202.5p it is trading at in London.
"Over the next two years, Providence will drill seven wells to appraise four existing discoveries and test three very significant exploration prospects," he said.
"The current share price is only half our 418p value of commercial assets and a single new commercial development could double our valuation."
The company is scheduled to start drilling at its Barryroe discovery in the Celtic Sea off the southeast coast of Ireland.
The new coverage will be a boost to Providence as it prepares to launch its most ambitious drilling programme. Among its other assets are Dalkey Island off Dublin and Dunquin off the Kerry coast.
"Moreover, Dalkey Island and Dunquin are each worth more than 350p risked and if successful could add more than £10.00 a share to valuations," Mr Whitlock added.
Providence closed up 10.4pc at €2.43 in Dublin.