Exploration group Providence Resources said test drilling of its Blackrock prospect in the Celtic Sea suggests the presence of non-waxy oil that could yield up to 613 million barrels.

Providence told its annual general meeting yesterday that it holds 50 per cent of the prospect and is seeking partners to assist in its development.

The company has an option to increase its interest to 75 per cent by contributing an equivalent percentage of costs towards the 2003 work programme. Midmar Energy holds the remaining 50 per cent interest.

The meeting also heard that Providence has secured two new licensing options - each for a three-year term - in the Celtic Sea and St George's Channel.

The group said this is an exciting combination of existing discoveries and large new prospects, and is integral to its strategy for the Irish offshore.

In the UK, the group has high hopes for its Skye oil prospect in the central North Sea and adjacent to the Witch Ground Graben, a prolific oil-producing area. The Skye licence runs for two years from October 1st.

Providence holds a 45 per cent stake, with Midmar as operator holding 45 per cent and Odegaard UK Ltd holding 10 per cent.

Dr Brian Hillary, chairman, said: "Providence now operates the widest spread of interests in the Celtic Sea, an area in which we have built up considerable expertise. Our portfolio has significant potential for future success."

The company posted a €36,000 profit before interest and tax in 2002, compared to €695,000 in the previous year. The retained loss for the year was €397,000 against €584,000 for the same 12 months in 2001. Operating expenses were €398,000 from €788,000 for the previous year.

All resolutions were passed at the meeting yesterday.