Providence offered Rathlin licence

Oil and gas exploration firm Providence Resources said its UK subsidiary has been offered an exploration licence off the coast of Northern Ireland.

PR Singleton, which is a wholly owned subsidiary of the firm, was offered the licence over six blocks in the Rathlin Basin, offshore Northern Ireland by the UK's Department of Energy and Climate Change (DECC) as part of the UK's 26th seaward oil and gas licensing round announced on December 30th.

Providence said the initial licence phase covers six years, and under the terms of the deal, a well must be drilled within this period to progress to the next phase.

The group said it will carry out technical studies on the hydrocarbon exploration potential and will operate the licence with a 100 per cent equity interest.

"We are very pleased to have been offered additional offshore acreage in the Rathlin Basin, which in conjunction with the licence secured over Rathlin Island in 2010, gives Providence the leading offshore acreage position in this emerging basin," said Providence chief executive Tony O'Reilly.

"Providence has a clear corporate focus to evaluate the main hydrocarbon basins off the island of Ireland, and this new offshore acreage complements our already substantial portfolio, where we now have licence interests in eight distinct basins.”