Providence set to begin survey of Dunquin site

DRILLING at the much anticipated Dunquin exploration licence, off the west coast of Ireland and part-owned by Dublin company, Providence Resources, has seemingly inched a step closer, with news that preparatory work is due to commence in the coming weeks.

Providence announced , yesterday that site survey work at the Dunquin site (which lies in the Porcupine Basin area off the south-west coast of the country) will commence shortly.

Although no definitive timeframe has been given – much depends on the availability of relevant equipment – it is thought that work will get under way before the end of the summer.

The site survey basically represents preparatory work ahead of a possible exploration well.

It is not known how long such work will take, but all of the shareholders of the project are understood to be very excited about its potential.

Dunquin is situated 200km off the Irish coast and is located in 1,600m of water. Recent seismic studies revealed the presence of two giant deep-water exploration targets.

Dunquin is a highly-rated asset in the Providence portfolio. The company has a 16% stake in the licence, which is operated by ExxonMobil – who is also seeking a farm-in partner for the asset. While refusing to go into too much detail at the company’s annual general meeting in Dublin, last week, Providence chief executive, Tony O’Reilly Jnr told assembled shareholders that he hoped much more details on the licence could be reported at next year’s AGM.

“To have one prospect like this is every little exploration company’s dream and we have three,” Mr O’Reilly said at the meeting.

Shareholders were also told that Providence is on track to more than treble its production rates by 2014.

It has a production rate of 2,000 barrels of oil equivalent per day (boepd) and is aiming to increase that to 3,000 boepd by the end of the year.

The company said, last week, that boepd could reach 5,000 by 2012 and 10,000 two years later.