Thursday 22 February 2018

Providence 'surprised' at share drop

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
Sarah McCabe

Sarah McCabe

PROVIDENCE Resources will target a new and broader range of investors after being "surprised" at the slump in its share value over the past six months, the Irish exploration company has said.

"Given the scale and quality of our portfolio and our partners, together with the growing industry focus on the North Atlantic Conjugate margins, in general and offshore Ireland specifically, it is very surprising to see the significant erosion in our stock market valuation over the past six months," Ireland's largest mining company said in a statement yesterday.

The company's ISEQ-listed share price has more than halved since June, down 59pc from €6.25 on June 28 to €2.64 by yesterday afternoon.

The company finished the year without producing any oil from its Irish interests but said the prospects "have never looked brighter".

Its 2013 operations were largely focused on the Barryroe oil field and Dunquin. Its exploration programme in Irish waters equates to a €500m investment.

It is seeking a farm-out partner for Barryroe, though chief executive Tony O'Reilly warned it could not be certain of reaching an agreement.

Irish Independent

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