Oil and gas exploration company Providence Resources has begun appraisal drilling on its Dunmore oil discovery in the North Celtic Sea Basin, off the south coast of Ireland.

The fate of the Tony O' Reilly-led consortium bid for Eircom may be in jeopardy because of the number of business interests held by the newspaper boss.

The board of Eircom is expected to meet today to discuss the rival bids for the company's fixed line business.