Providence shares continue to languish
SHARES in exploration firm Providence Resources failed to recover any of the ground they lost on Monday despite the company saying that it had converted its Spanish Point licensing option in to a frontier exploration licence.
Providence said that it had relinquished a mandatory 25pc of the licence and that the company and its partners on the blocks had been offered a follow-on frontier exploration licence. Its partners on the licence include Capricorn Ireland, which is a subsidiary of Cairn Energy, Chrysaor E&P and Sosina. They were awarded the Spanish Point South licence as part of the 2011 Irish Atlantic Margin licensing round.
Providence said that planning for a survey of the Spanish Point South area had begun.
"Given our planned 2014 drilling activity on the Spanish Point discovery, which lies adjacent to this acreage, this new licence award provides the partners with further acreage in a region which is drawing increasing industry interest," said Providence technical director John O'Sullivan.
On Monday, Providence said it had been awarded a follow-on frontier licence for the Drombeg prospect off the south-west coast. Its shares fell amid concerns about farm-out talks related to its Barryroe site south of Cork. Providence insists talks are continuing with prospective partners.