Irish oil and gas exploration firm Providence Resources has been offered a new licensing option by the State in the South Celtic Sea basin
The 18-month option, issued by the Department of Communications, Energy and Natural Resources, covers a 1,500 square kilometre area of sea about 130km off the south coast.
The company said initial seismic and mapping studies have identified a large mid-basinal structure named Silverback, which is similar to other gas-rich structures off the Irish coast.
"The Silverback prospect represents a continuation of our stated strategy to generate and roll out new and material high impact exploration opportunities offshore Ireland, " Providence's technical director John O'Sullivan said.
“This latest addition to our extensive portfolio is a result of our ongoing technical re-evaluation of Ireland’s under-explored offshore basins through the prism of new technology, higher pricing, improved infrastructure together with a fiscal regime designed to attract an inward flow of foreign direct investment”.
Davy Stockbrokers said the features identified so far by Providence can only be designated “as leads with no volumetric assumptions available.”
“The licence acquisition can best be seen as a build-out of Providence’s position offshore Ireland, providing future ‘running room’ and optionality for the group,” it added.
