www.providenceresources.com
The combination of board and management talent, together with Providence's major shareholder worldwide network, presents a unique ability to succeed on the international stage. Providence has appropriate experience in the financing of large developments and is well equipped to plan and access finance for a wide range of activities and projects. Providence has established banking relations with a number of leading international financial institutions.
Since its formation, Providence has built a diversified portfolio of oil and gas exploration licences and concessions with the key focus being the pursuit of exploration and appraisal interests offshore Ireland. The Company’s board and management have a well-established background in the oil and gas business having worked closely with many major companies throughout the world. Providence works with leading companies including ExxonMobil, Repsol, ENI, Petronas, Chrysaor and Nautical Petroleum.
Providence Resources acquires new exploration licence in St George’s channel - UPDATE
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Providence Resources (LON:PVR) shares gained 10 per cent today after it announced that it has been offered a new exploration license in the United Kingdom.
The licence is the UK seaward block 103/1, which covers an area in the St George's Channel Basin, offshore between South Wales and Ireland. And it adds to the firm’s position in the UK and Ireland.
The block contains the Dragon gas discovery.
"We are very pleased to have been offered this UK block, which is adjacent to Irish licence SEL 1/07 which Providence operates 100 per cent,” said chief executive Tony O'Reilly.
“The Dragon gas discovery is mapped to lie within both the UK and Irish sectors and the award of this new block will allow Providence to move forward with the drilling of its planned appraisal well."
Providence will have a 50 per cent stake in the licence and its partner Star Energy Oil & Gas.
The new licence award comes as Providence is in the early stages of a long multi-well drill campaign in the waters around Ireland.
The first well in this programme is targeting the Barryroe discovery. The well was spudded in late November and drilling is scheduled to be completed before the end of January.
“The licence award opens the way for Providence to proceed with an appraisal well in the coming year and today's news helps to progress the drilling of the prospect,” Davy analyst Job Langbroek said in a note to clients.
“In fact, Dragon is part of a multi-well offshore Ireland drilling programme. This starts with the results of the Barryroe well in the Celtic Sea, expected in the coming weeks.”
The potential value from the group’s wide range of targets in offshore Ireland leads Davy to value the stock at 919p a share, almost 300 per cent higher than the current price. Just 8p of that valuation is attributed to the Dragon prospect.
At 13:50 the stock was up 21.5p, or 10 per cent, trading at 234p a share.
