Irish oil and gas exploration company Providence Resources has been awarded an exploration licence that will enable it to proceed with drilling at its Dalkey Island prospect off the coast of Dublin.

The Dublin- and London-listed company announced yesterday it had secured a licence in the Kish Bank Basin, which contains the Dalkey Island exploration prospect.

The licence was granted by the Department of Communications, Energy and Natural Resources for up to six years, split into two three-year phases.

Providence holds a 50 per cent stake in the licence, with partner Star Energy.The partners have committed to drilling at least one well during the first phase.

The exploration prospect is located about 10km offshore in about 25m of water.