Oil and gas exploration company Providence Resources has begun drilling at its licence at Barryroe in the North Celtic Sea Basin offshore southern Ireland.

The drilling and testing programme is expected to take about 60 days.

Providence operates the well and currently holds a 50 per cent interest in the licence. Partners San Leon Energy and Lansdowne Oil and Gas holding the remaining 30 per cent and 20 per cent respectively.

Chief executive Tony O’Reilly said the drilling was “a very exciting time”. Three wells have already been drilled; the latest well will offset one of these. The aim is to demonstrate commercial flow rates of 1,800 barrels of oil a day or better.

Davy analyst Job Langbroek wrote: “The advent of new technology and much higher oil and gas prices offer an opportunity to re-examine a range of ‘unconventional oil’ discoveries in the region.”