Business Irish

Saturday 17 August 2019

Providence update will 'unsettle' shareholders

Drilling at the Barryroe site off Cork is expected to begin at the end of this year
Drilling at the Barryroe site off Cork is expected to begin at the end of this year
Ellie Donnelly

Ellie Donnelly

The latest update from Irish oil and gas explorer Providence Resources will "unsettle" shareholders, according to analysts at Davy Stockbrokers.

Yesterday Providence said drilling operations at the Barryroe site off the coast of Cork are expected to take place in the fourth quarter of 2019.

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It had previously expected operations to take place in the middle of this year, however this was delayed after Providence postponed a planned survey at the site, which had originally been scheduled for late last year.

The group now expects the survey to be carried out in the third quarter of this year.

Meanwhile, Apec, a Chinese consortium and Providence's farm-in partner in Barryroe, will provide the group with a loan advance of $9m (€7.9m) by the middle of this month.

Providence had expected to receive the funds late last year. The delay in receiving the money is in part due to a change in "the composition of Apec's funding mechanism" Providence understands.

In a bad few days for the group, Providence Resources and its partners on Frontier Exploration Licence 3/04, which is located off the south west coast of Ireland, earlier this week said they are to defer the acquisition of the planned 2019 Dunquin South exploration well site survey.

The Irish exploration group said it would provide further updates on the revised scheduling of the survey "as and when appropriate". Shares in Providence were down over 16pc in trading yesterday.

Elsewhere, London-listed United Oil & Gas has been provisionally awarded four blocks in the UK North Sea, and two blocks in the English Channel. United estimates that the blocks could contain over 90 million barrels of in-place oil.

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