Monday 23 October 2017

Shares in Providence Resources slump on Drombeg survey news

Photo issued by Providence Resources of the GSF Arctic III rig which was used in drilling at Barryroe
Photo issued by Providence Resources of the GSF Arctic III rig which was used in drilling at Barryroe
John Mulligan

John Mulligan

Shares in exploration firm Providence Resources have tumbled this morning as it said it will undertake a survey of a swathe of the Drombeg prospect off the south-west coast of Ireland.

Providence has been awarded a follow-on frontier licence for Drombeg, having mandatorily relinquished 25pc of the prospect. It originally secured the licence over the prospect in 2011 as part of the Irish Atlantic Margin Prospecting Round.

“The main lower Cretaceous Drombeg prospect is considered to be of a similar age and depositional setting to prospects being targeted by Kosmos Energy further to the north and east in the basin,” said Providence.

"Given the significant oil prospectivity, which was highlighted during the licensing option phase, it should come as no surprise that we have elected to progress Drombeg to an exploration licence,” said Providence technical director John O’Sullivan. “We envisage the 3D survey both as a tool to allow for further exploration risk mitigation, together with well planning.”

But shares in Providence slumped this morning, and are currently trading just over 11pc lower at €3.05. The stock has slumped 60pc in the past year.

Online Editors

Also in Business