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.

Providence Resources and Europa Oil and Gas – two of the most active exploration companies in Irish waters – are confident of further deal activity after both landing development partners for assets they hold off the west coast of the country.

Irish explorer Providence Resources looks to be close to a deal with a rig contractor as it continues to ready itself for a return to drilling in Irish waters next year.

Providence Resources is eyeing a start date of next June for drilling at its Druid oil prospect in the Porcupine Basin off the south-west coast.

Providence Resources has reiterated that it is in discussions with major oil companies from Europe, Asia and North America regarding a farm-out at its Barryroe oil field in the Celtic Sea, adding that there has been “no material change” to the outlook it presented last month.