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Irish independent oil and gas explorer, Providence Resources plc (LSE:PVR), is to attend a gathering of industry peers at a conference in Dublin today with fresh news that another of its acreage off the west coast of the state may contain a large deposit of hydrocarbon.
In a statement, the London and Irish stock exchanges listed firm postulated there is about 872 million barrels of oil at P50 estimates within the Drombeg prospect, 220 kilometres off of West Cork County, following a major seismic inversion programme that showed thick hydrocarbon bearing sandstone intervals.
The Drombeg prospect lies over 5,000 metres below the sea surface and is considered a deepwater exploration undertaking targeting the same plays found in South America and West Africa.
It is 60 kilometres away from the Dunquin prospect, where Providence has 16% carried interest, scheduled to be drilled by Exxon Mobil in the first quarter of 2013.
Both Drombeg and Dunquin are located within the South Porcupine Basin, now the new target for hydrocarbon exploration within the Irish waters following Providence’s discoveries in the Celtic Sea.
Another Irish firm, Europa Oil & Gas (LSE:EOG), recently estimated about a billion barrels of oil equivalent is also trapped within its acreage within the said basin.
Europa is also to present its findings at the same Atlantic Ireland Conference, a venue for oil and gas exploration companies to present the latest in exploration opportunities and research results of the hydrocarbon potential of the island-state.
“Initial feedback from the industry has been very positive with the prospect creating much interest amongst deepwater exploration operators,” Providence’s Technical Director, John O’Sullivan, said in a statement.
Further technical data, including 3D seismic, according to the company, will be needed to determine the ultimate resource potential of the Drombeg, which has estimated oil in place volume of about 3 billion barrels.
Market Reaction
Shares of Providence only moved 0.9% to 606.50 pence two hours after trading started in London today, following the announcement.
Providence’s market value, nonetheless, has risen over 300% since the firm discovered billion barrels of oil and gas deposits south of the country in February 2012.
The company holds 80% working interest in the Drombeg prospect, with the remaining 20% held by British private equity firm Sosina Exploration Limited.
