(MENAFN- ProactiveInvestors) Irish oil and gas exploration company () has welcomed last week’s court judgement on claims brought against the company by Transocean.
The dispute related to the use of the semi-submersible drilling unit the Arctic III in 2011/12 on Providence's Barryroe oilfield offshore Ireland.
A Commercial Court in London ruled that Transocean was in breach of contract for failing to maintain various parts of its sub-sea equipment and that Transocean was not therefore entitled to the US$19mln or so it was claiming from Providence.
The ruling also supported Providence's position that Providence was entitled to set off certain spread costs against Transocean's claim.
The judgment now paves the way for the parties to finalise the account including legal fees which Providence will apply to recover.
Providence made provision in its accounts for an adverse result and said that a positive adjustment to the accounts will be made once all the dust settles.
"Following the handing down of this judgement we will look to settle the final account and will update the market when these details are confirmed. Likewise we hope to be in a position to update shareholders on our Barryroe farm-out process” said Tony O’Reilly chief executive of Providence.
“Finally once details are confirmed by the operator we will also update the market on the next well in our programme (Spanish Point) where drilling is scheduled to commence in 2015” he added.
Shares in Providence shot up on Friday from Thursday’s close of 63p to 69.5p having hit 86.75p at one point. Profit taking shaved 1.5p of the share price in early deals on Monday.
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