Providence Resources (LON:PVR) has secured the exploration licence which will allow it to go ahead with drilling on its Dalkey Island prospect off the coast of eastern Ireland.
The group had announced its decision to drill there in late September, saying a geochemical study on oil samples from a nearby well had confirmed the presence of a highly mature “oil prone source rock”.
John O'Sullivan, Providence’s technical director, said at the time: "Having completed our technical assessment of the basin, the partners have elected to progress the Dalkey Island prospect into the drilling phase."
Providence said today it has been awarded Standard Exploration Licence 2/11 in the Kish Bank Basin, offshore Dublin, by the the Irish Department of Communications, Energy and Natural Resources.
The licence has been granted for a period of up to six years, and is split into two three-year phases. Providence holds a 50 percent interest in the licence and operates on behalf of its partner Star Energy.
The licence contains the Dalkey Island exploration prospect and the partners have committed to the drilling of at least one well during the first phase. Providence and Star Energy have recently commenced the application process for a foreshore licence over the area in order to carry out well site survey and drilling operations.
Dalkey Island is part of the Providence's ambitious US$120 million exploration and development programme.
It began with 3D seismic work and the drilling of the Barryroe field – a development project in the Celtic Sea.
Following on from Barryroe is a re-drill of the nearby Hook Head field, which was first discovered in 1971.
Dalkey Island is part of the second wave of activity, which will also target Rathlin Island, off the north-eastern corner of Northern Ireland.
Moving into next year and the emphasis changes from east coast to the west, and Providence is heading very much further offshore in the pursuit of oil and gas.
Spanish Point is a gas condensate discovery located 125 miles offshore. It was found in 1981 when Ireland simply did not need gas in the quantities thought to be contained at Spanish Point and there was no infrastructure by which to exploit it – that has all now changed.
Providence estimates there are 200 million barrels of oil equivalent.
Those who follow Providence closely will know that Dunquin is the big daddy of all its exploration projects, and it has an all-star roster.
Work is expected to get underway on Dunquin in mid-2012 and will be followed in the autumn of next year by an appraisal well on the Dragon Field, which is equidistant between Wales and Ireland.
It also has a producing asset in Singleton in West Sussex, which the company has described as a “cash machine”. Oil revenues from this source will be used to help fund the company’s exploration activities.