Shares in Providence Resources jumped by more than 5 per cent yesterday as the company announced it had acquired a further 4 per cent interest in the licensing option which contains the Blackrock prospect in the Celtic Sea.

Dealers said around 24 million shares changed hands as the stock closed at six cents, with the bulk of the activity attributed to retail investors.

The share price rise accompanied the company's annual meeting at which it announced that it had acquired a further 4 per cent of Licencing Option 03/1 by way of a farm-in for around €1.15 million.

The interest was acquired from Midmar Energy. Providence has already agreed to farm out a 50 per cent interest in the Blackrock prospect to two larger partners - Challenger Minerals, a subsidiary of GlobalSantaFe Corporation, and Palace Exploration, an independent US oil and gas company.

After their earn-in, Providence will have a 41.5 per cent interest in the Blackrock prospect while Midmar will retain an 8.5 per cent interest.

Providence, in which Sir Anthony O'Reilly once had a 45 per cent stake, also told shareholders that the Stena Dee drilling rig is currently en route from Rotterdam to begin drilling operations on the Blackrock prospect.

"We look forward to evaluating results with considerable anticipation," Providence chairman Dr Brian Hillery said.

The company, which raised €13.4 million through a share placing and rights issue earlier this year, also has interests on the Irish offshore in both the Celtic Sea and St George's Channel.

"This significant tranche of acreage represents an exciting combination of existing undeveloped discoveries supplemented by new large prospects," the company said.

In the UK, a work programme is currently underway on Providence's Skye oil and gas prospect and the evaluation is expected to be completed in the second half of the year, shareholders were told.