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The drilling site is located in the southern Porcupine Basin around 220km off the south-west coast of Ireland.
As part of the pre-drill plan, operations will now move to the deeper Drombeg target, which is situated around 1,000m beneath Druid.
The development has sent Providence shares down over 32% in Dublin trade today.
Drilling, which is being carried out by the Stena IceMAX drill ship, began at the site last month.
The daily cost of using the Stena IceMAX is $185,000.
The Frontier Exploration Licence (FEL) 2/14 contains the Druid, Drombeg and Diablo prospects.
The 53/6-1 well is operated by Providence Resources (56%) on behalf of its partners Capricorn Ireland Limited - a wholly owned subsidiary of Cairn Energy with a 30% stake - and Sosina Exploration Limited with a 14% stake.
In an investor note, Davy said "while the Southern Porcupine Druid result is clearly disappointing, a sentiment likely to be seen in the initial market reaction, the well still has a second substantial and separate deeper target.
"In addition, if the well comes in on cost prognosis, the financial arrangements (of the well) are such that the group remains capitalised for operations in 2018."