Exploration company Providence Resources has secured a rig for its Celtic Sea oil drilling programme in a contract described as "a major coup" by analysts at the company's broker, Davy.

Providence has obtained use of a semi-submersible rig for its drilling of a reservoir of crude oil off Hook Head despite a very tight, busy market for rigs. Drilling is expected to start in June or July this year.

Under the terms of the deal with Transocean, Providence, on behalf of the Celtic Sea partners, has hired the rig to drill two firm wells and has an option to explore a third well.

The main aim of the drilling programme is to further appraise the accumulation of oil at Hook Head, which it first announced last October. It may then choose to drill a further well at the nearby Dunmore East oil discovery.

Providence's chief executive, Tony O'Reilly jnr, said the importance of the drilling programme could not be overstated.

"With further appraisal success, it should not only allow us to continue to build on the discovery of the Hook Head oil accumulation but also allow us to advance the development potential of the many other undeveloped discoveries in the Celtic Sea region," he said.

Analysts at Davy Research described Providence's ability to obtain a rig as a surprise and said the proposed wells may result in a commercial decision on the Celtic Sea oil this year.

Providence, which is listed on Dublin's IEX market for small companies and London's Alternative Investment Market, has a 43.5 per cent interest in the oil and is using a recently acquired $250 million credit facility to finance the exploration.

Davy said the contract was understood to be at the current market rate of $400,000 per day.