Providence plugs and abandons well

Irish oil and gas explorer Providence Resources yesterday said that it has plugged and abandoned its first exploration well, with shares tumbling over ten per cent on the news. “The presence of a potential residual oil column may indicate that hydrocarbon entrapment has occurred...but that the oil has subsequently leaked,” said technical director John O’Sullivan, adding that the quality of the seal had been identified pre-drill as “a possible risk”. “While Dunquin’s pre-drill assessment was designated as a high risk prospect with significant technical challenges, today’s announcement will come as a disappointment to investors,” said Cantor Fitzgerald. Shares closed 10.7 per cent down at £4.80.