Providence secures licence option for Silverback site
PROVIDENCE Resources has secured a new licensing option for a site off the south coast of Ireland.
The Irish mining company, Ireland's largest, has 18 months to exercise its rights to the Silverback licence, which concerns a 1,530sq km area located 130km off the coast of Ireland in the south-western sector of the South Celtic Sea Basin.
The site is about 80km south of the company's Barryroe oil field. It is undrilled and no estimates of oil or gas resources have been provided, but Providence said it is an exciting opportunity because it shares many structural similarities with Kinsale Head and the Corrib fields, the country's two biggest hydrocarbon deposits.
The company will now carry out analysis of older data on the region, combined with data from nearby fields, to determine whether to exercise its option over Silverback.
"The Silverback prospect represents a continuation of our stated strategy to generate and roll out new and material high-impact exploration opportunities offshore Ireland," said technical director John O'Sullivan.
"This latest addition to our extensive portfolio is a result of our ongoing technical re-evaluation of Ireland's under-explored offshore basins through the prism of new technology, higher pricing, improved infrastructure together with a fiscal regime designed to attract an inward flow of foreign direct investment".
Shares in the ISEQ-listed company were trading at €3.03 yesterday afternoon, a fall of 1.6pc.