Providence to drill off Dalkey
PROVIDENCE Resources, the listed Irish oil company, plans to move ahead with drilling of an oil well at its Dalkey Island prospect, off the coast from Dublin.
The undersea site is located around 10km off the coast and drilling will go ahead after a geological survey confirmed the presence of oil at the site.
Providence Resources and its partner, Star Energy Group, already hold an exploration license option for Dalkey Island. They said yesterday that they had applied for a standard exploration license that would allow the drilling to go ahead.
Sinking a well in the 25-metre-deep sea is expected to cost in the region of €10m and could be in place as soon as next year, according to analysis from Davy stockbrokers. Shares in Providence closed up just under 1pc in Dublin following the news, at €2.23 per share. Providence is already set to launch off-shore drilling next month at its separate Barryroe oil discovery off the south coast.
According to Davy, the Dalkey Island well could be the next Providence well on the schedule after the Barryroe drilling. Davy said similar prospecting in the Liverpool Bay area off the UK coast had proved viable.