Providence begins new round of UK drilling
PROVIDENCE Resources has begun fresh drilling at an onshore site in Britain which could push up production at the field by as much as 40pc.
The latest drilling is at the company's Singleton oil field which currently produces around 800 barrels of oil or gas equivalents from seven wells.
The programme, at two wells over a six-week period, involves so-called sidetracking which uses special equipment to exploit an existing well by drilling sideways. This could extract another 350 barrels a day, the company said in a statement.
"These wells are again aimed at materially increasing production rates as well as evaluating the potential of fracture stimulation and multi-lateral well technology," chief executive Tony O'Reilly said.
Exploration companies are increasingly dependent on small oil finds in unusual places to extract oil and gas.
Providence said back in April that seismic data has shown its Baxter's Copse discovery in the south of England had significantly more oil than previously thought and drilling could begin in 2011.
Providence shares Baxter's Copse with Northern Petroleum and they have agreed a programme which, it said, could lead to the first horizontal well being drilled from Singleton.