Providence finds Cork gas prospect

PROVIDENCE Resources said it is excited over its discovery of an additional significant gas prospect off the Cork coast, news which nudged the company’s share price up nearly 10% yesterday.

The Tony O’Reilly Jnr-led exploration company, which is due to publish first-half financial results next Wednesday, said studies of the ‘Marlin’ gas prospect, situated 10 kilometres north-west of the Kinsale Head gas field, show the prospect to have a resource potential of up to 74 billion standard cubic feet of gas (bscf). Providence owns a 60% stake in the Marlin prospect, after earlier this year selling a 40% interest to London-based oil firm Nautical Petroleum in return for carrying out a development feasibility study in the area, which is ongoing.

Commenting on the find, Providence technical director John O’Sullivan said: “We’re excited about this new exploration prospect, as it is in the same geological setting as other proven producing fields in the region and it’s very close to the Kinsale Head production facilities. In particular, the Marlin prospect demonstrates striking similarities to the nearby Ballycotton gas field.”

Earlier this month, Providence announced it had begun a six-week drilling operation at its Singleton oil field in Britain, which produces around 800 barrels of oil per day (bopd) from seven production wells. It is hoped activity there will increase the company’s overall production rates.

Providence’s share price surged by 17c, 9.44%, yesterday, on the back of the latest news, although it still remains below its 12 month high of €4.80.