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Providence Resources (LON:PVR) told investors it will collaborate with Schlumberger in the exploration off Ireland’s west coast.
Through a strategic and incentivised collaboration agreement Schlumberger will work with Providence in the Southern Porcupine and Goban Spur basins and as such, PVR highlights that Schlumberger will provide its ‘state of the art’ technology.
The aim, PVR said, will be to further de-risk the Dunquin South, Drombeg, Druid and Newgrange exploration prospects, together with any new acreage acquired in the area.
Schlumberger will also facilitate farm-out data-room processes for the Drombeg, Druid and Newgrange prospects. It is expected that they will ‘open’ in the first quarter of 2016.
There has been a significant increase in interest from global E&P players in these areas offshore Ireland, said PVR’s technical director Dr John O'Sullivan.
He added: “Our first mover advantage has allowed us to secure what we believe is some of the most materially prospective acreage in these basins, with the subsequent well results at Dunquin North and in the Flemish Pass, offshore Eastern Canada, serving to vindicate our initial exploration strategy.
“Having recently acquired modern high quality 2D and 3D seismic data over our primary prospects, we now plan to capitalise on our unique proprietary database by using Schlumberger's best in class multi-disciplinary technologies in order to leverage in a deep-water operator."
Broker Cantor Fitzgerald repeated a 'buy' and its target is 87p.
"We see the collaboration with Schlumberger as a positive for Providence as the company looks to re-energise focus in relation to Ireland’s hydrocarbon potential," said analyst Sam Wahab.
"Nevertheless, the capital market’s focus remains on whether Barryroe (PVR 80%) will be farmed down in the near-term ahead of a 2016 drilling programme offshore Ireland.
"On a corporate level, following a period of recapitalisation where the company successfully raised funds through a secondary placing and open offer in addition to an extension to its loan facility, Providence is well funded to continue desktop studies and mature its dataset across its portfolio.
"Against this backdrop we see the current share price trading at a considerable discount to risked NAV."
Providence shares gained 7.27% to 14.75p.