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Drilling vow boosts Providence stock

SHARES in Providence Resources rose yesterday after the oil and gas explorer said it was committing to drill at one of its discoveries off the west coast of Ireland.

In an operational update, the company said it had notified the Department of Energy that it had elected to enter the second phase of Frontier Exploration Licence 2/04, which contains the Spanish Point gas condensate and Burren Oil discoveries.

The second phase carries a well commitment and will form part of the company's multi-well drilling programme this year.

Meanwhile, a competent third person's report on the two licences has assessed gross un-risked recoverable prospective resources of up to 750 million barrels of oil equivalent.

Caren Crowley of Davy Stockbrokers said: "The announcement should be welcomed by shareholders as concrete evidence that a well will be drilled on the Spanish Point discovery.

"The appraisal of this discovery is an important part of the 10-well programme slated for the Irish offshore over the next two years."

Providence closed up 0.61pc at €3.30.

Irish Independent