Providence Resources (LON:PVR) has told investors it is “very surprised” by the erosion of its share price in the second half of what it described as another busy year in 2013.
The Cairn operated Spanish Point well, due to be drilled in the second quarter, could provide stimulus in the coming months, while the Irish firm also highlighted that negotiations are ongoing over a new farm-out deal for the Barryroe oil field development.
A partnership would be designed to take Barryroe through detailed appraisal and, ultimately, into production, it said.
Chief executive Tony O’Reilly said there has been good industry interest, and talks are underway with a number of international E&P companies from Asia, North America and Europe.
There can, however, be no certainty on timing, he added.
In the meantime, work continues with the analysis of the Dunquin North well, the first in the southern Porcupine basin.
The well was drilled in the summer and whilst it was not an outright success (as the primary target was water bearing), it did find a residual oil column in a large carbonate reservoir system, and as such O’Reilly believes it has acted as both a play and basin “opener”.
Kosmos Energy, in many ways the architect of the ‘Atlantic conjugate margins’ play, itself entered the region this year, by acquiring acreage in the basin, and, according to O’Reilly, Kosmos is “equally upbeat” about the basin’s prospects.
The Providence chief also repeated his view that Ireland's offshore oil and gas sector is undergoing a major renaissance, and with its multi-well drill programme Providence is leading the way.
"Given the scale and quality of our portfolio and our partners, together with the growing industry focus on the North Atlantic Conjugate margins, in general and offshore Ireland specifically, it is very surprising to see the significant erosion in our stock market valuation over the past six months,” he said in a statement.
“Your board is keenly focused on the issue and, in addition to its focus on its various commercial negotiations, the company is working to rectify this by ensuring that the Providence investment proposition is known to as broad an investment community as possible.
"Looking ahead, the prospects for the Irish oil and gas sector have never looked brighter, and Providence fully intends to carry on leading the way in realising the significant potential that exists in the region.
“We continue to look to the future with confidence."