O’Reilly confident of Providence rise

PROVIDENCE Resources’ chief executive Tony O’Reilly Jnr has said he is confident in the exploration company’s share price belatedly gaining momentum in the wake of it finalising its move into the potentially lucrative gas storage and trading market.

The Dublin-based oil and gas exploration firm yesterday announced that it had formally exercised, via its Eirgas subsidiary, the option to buy a 40% stake in the Kinsale Head asset — which includes the Kinsale Head, South-West Kinsale and Ballycotton gas fields — and a 34.6% stake in the adjacent Seven Heads gas field from Malaysia’s national oil company, Petronas, for a total consideration of around $40 million (€27.4m).

Yesterday’s announcement comes within the three month completion window — the option actually being awarded to Eirgas/Providence back in June.