Irish exploration company Providence Resources has said it will seek financial compensation from the Government should the Dáil pass into law proposed legislation targeting a ban on oil and gas drilling in Irish waters.

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.

An assessment of one of the Irish exploration prospects in which French oil ‘super-major’ Total has invested has returned an initial resource estimate of around 12bn barrels of oil equivalent.

One of the world’s largest oil companies, France’s Total has signed two commercial development deals with Irish exploration company Providence Resources – a move which sent the latter’s shares soaring as much as 11% yesterday.