Providence shares plunge 40% on poor drilling result

Shares in  plunged by as much as 40% yesterday, wiping around €41m from its market value, after the Irish explorer reported disappointing initial results from its highly-anticipated return to drilling off the west coast of the country.

In an operational update on the Druid prospect in the Porcupine Basin off the south-west coast, Providence said the target contained water – or that the data indicates “a porous water-bearing reservoir”.

Last month saw drilling — at an approximate cost of $185,000 per day — begin at the licence area containing both the Druid and Drombeg prospects.