Providence gets licence to drill off North coast

EXPLORATION GROUP Providence Resources plans to search for oil and gas on Rathlin Island, off the northeast coast after being offered a licence to drill there.

The company confirmed yesterday that Northern Ireland’s Department of Enterprise, Trade and Investment has given it a petroleum-exploration licence for Rathlin Island, off the Antrim coast.

The initial licence term is for five years, and the conditions require Providence to commit to drilling a well within three years.

The company intends to carry out a number of technical studies of the area’s subsurface geology during the first three years to determine its potential for oil and gas exploration and to provide it with the basis for making a decision on drilling there.

Providence’s technical director, John O’Sullivan, said that there are some indications the company’s search could be fruitful.

He pointed out that drilling in a well in the Rathlin basin known as Ballinlea-1 in 2008 actually recovered some oil during testing. He explained that this lies on the edge of the basin, which “extends and deepens” towards Rathlin Island.

Mr O’Sullivan added that there is potential under Rathlin Island itself as it overlies the area of the basin that is likely to be the most mature and productive.

Chief executive Tony O’Reilly Jnr welcomed the fact that the company has won its first exploration licence from Northern Ireland’s authorities.

“Providence has a clear corporate focus to evaluate the hydrocarbon potential of the island of Ireland and this new licence over Rathlin complements our substantial Atlantic margin and Irish Sea acreage portfolio,” Mr O’Reilly said yesterday.

Providence is involved in oil and gas exploration in Ireland, Britain, the Gulf of Mexico and Nigeria. It is listed on the Irish and London stock markets.