Providence surges on 'Rathlin find'
Published 25/01/2013 | 05:00
SHARES in Providence Resources rose sharply yesterday after the company said it had potentially found another huge oilfield off the Irish coast.
In a statement to the stock exchange, the company said it had found signs of an oilfield with potentially 530 million barrels of oil recoverable at its licence off Rathlin Island on the northern coast of the country.
Seismic data indicated the presence of such a field, while wells that have been drilled nearby have also indicated the presence of hydrocarbons.
Because the site is so close to shore, Providence said the "Polaris Prospect", as it is called, could conceivably be drilled from land. The site is likely to be drilled next year.
This is the latest positive announcement from Providence, which said there was over one billion barrels at its Barryroe discovery off Cork last March, and followed that with a claim there could be nearly 900 million barrels at Drombeg in the Atlantic last November.
Davy Stockbrokers' Job Langbroek said the news would continue to "derisk" the company's efforts in the region. "(Providence's) full 100pc equity position will allow it flexibility in any farm-out process (of the licence in the future)."
The shares added 3.7pc to €7.98 in Dublin.