A DUBLIN company is to start drilling for oil off the coast of Kerry in June.
Providence Resources is on course to drill in the southern Porcupine Basin, about 220km off the south-west coast of Ireland. They have two projects, ‘Druid’ and ‘Drombeg’ and say there could be billions of barrels of oil at its Druid location.
The company estimated in August that the Druid exploration well could cost $35 million but estimates that may be as much as 3.2 billion barrels of oil at that location.
As part of the deal it struck with UK-based Cairn Energy, one of the world’s largest oil and gas explorers, they will cover 45% of the costs of drilling a well, up to a cap of $42 million (€40 million).
Providence has contracted a drilling ship and it expects the operations to start in June. Prospective oil estimates are often much higher than proven reserves. However, if drilling is successful at Druid it will likely result in a large oil find reports the Fora website.