Oil production rates of around 9,000 barrels per day have been indicated from the latest testing of Providence Resources' exploration well on the Helvick prospect in the Celtic Sea.

But while its testing from the well is encouraging and improves the prospects of the Helvick structure being declared commercial, the company has warned that further work is needed to establish the maximum flow rate from the prospect.

Providence - which is 44 per cent-owned by Dr Tony O'Reilly's family interests - has also warned that it not possible to determine the amount of oil in place until all the testing, data collection and evaluation are completed and a study of the results made.

The 49/9-6z well was drilled to a depth of 5,760 feet including a horizontal section in the Main Sands structure. Oil flows were tested over a 70-hour period and produced around 5,200 barrels per day of high quality oil. These results are comparable with those from the original drilling of the prospect by Gulf Oil in its 1983 discovery well.

These test results, as well as results from other parts of the well not tested under the current programme, indicate the 9,000 barrels per day production rate. Analysts believe this production rate is sufficient to make Helvick a commercial field as long as sufficient oil is in place.

At the Providence a.g.m. last month, the chief executive Mr Phil Tracy said Providence could generate €210 million and €315 million from the Helvick oilfield, with this turnover target contingent on being able to produce eight to 12 million barrels of oil over four years and oil prices remaining over $25 a barrel.

The 9,000 barrels per day indicated flow rate from the current well suggests that Providence could generate more than 13 million barrels of oil over a four-year period.