Irish oil firm says drilling will go ahead at key well

IRISH oil and gas exploration company Providence Resources has confirmed that drilling will take place at the highly rated Dunquin prospect, which is situated off the south-west coast of the country. The date has yet to be specified.

Providence holds a 16% stake in the Dunquin well with ExxonMobil Exploration and Production Ireland (Offshore) holding a combined 40% and London-headquartered company Sosina Exploration controlling 4% and Italian company Eni holding the remaining 40% — having concluded a farm-in agreement with the other owners earlier this week.

Although the announcement that drilling will, at some stage, commence at Dunquin — the operators have notified the Department of Communications, Energy and Natural Resources of their decision to enter a second phase of the Dunquin licence, which carries with it a firm “well commitment” clause — comes as no surprise; it had — until yesterday — not been confirmed. The news boosted Providence’s share price by more than 10% yesterday to 4c.