PROVIDENCE RES. Providence Resources P.L.C : Licence Update, Southern Porcupine Basin
23 January 2017 - 6:00PM
UK Regulatory
TIDMPVR
Licence Update
Frontier Exploration Licence 2/14
Southern Porcupine Basin
-- FEL 2/14 PROGRESSED TO THE SECOND PHASE OF THE LICENCE
-- PRIMARY WORK PROGRAMME ACTIVITY IS THE DRILLING OF THE DRUID PROSPECT
-- PLANNED SPUD DATE FOR THE DRUID WELL IS JUNE 2017
Dublin and London - January 23, 2017 - Providence Resources P.l.c. (PVR
LN, PRP ID), the Irish based Oil and Gas Exploration Company, provides
an update on the Frontier Exploration Licence ("FEL") 2/14, which lies
in c. 2,250 metre water depth in the southern Porcupine Basin and is
located c. 220 kilometres off the south west coast of Ireland. The
licence is operated by Providence Resources P.l.c. ("Providence", 80%)
on behalf of its partner Sosina Exploration Limited ("Sosina", 20%), who
are collectively referred to the "JV Partners". FEL 2/14 contains the
Paleocene "Druid" and the Lower Cretaceous "Drombeg" exploration
prospects.
LICENCE UPDATE
The Minister of State for the Department of Communications, Climate
Action and Environment has given his consent to the progression to the
second phase of the licence, subject to the completion of the agreed
work programme which includes the drilling of the 53/6-A exploration
well on the Paleocene Druid prospect and the subsequent integration of
the well data into a comprehensive assessment of the petroleum potential
of the licence.
OPERATIONAL UPDATE
In November 2016, the Company signed a drilling contract for the
provision of the Stena IceMAX drill-ship to drill an exploration well in
FEL 2/14 during 2017. The drilling contract provides for one firm well,
plus an additional option, which is electable at the discretion of the
JV Partners for the drilling of a second follow-on well. Other key
service contracts are now being finalized for the drilling operations
for the planned 53/6-A exploration well. Based on the latest project
timeline and, subject to standard regulatory approvals and consents, the
53/6-A exploration well is currently planned to spud in June 2017.
Speaking today, Tony O'Reilly, Chief Executive of Providence said:
"We are pleased to have received this confirmation from the government
on the licence progression as we continue to move forward with all the
necessary works to enable the drilling of this high impact exploration
well during summer 2017."
INVESTOR ENQUIRIES
Providence Resources P.l.c. Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive Officer
Cenkos Securities plc Tel: +44 131 220 9771
Neil McDonald/Derrick Lee
J&E Davy Tel: +353 1 679 6363
Anthony Farrell
MEDIA ENQUIRIES
Powerscourt Tel: +44 207 250 1446
Lisa Kavanagh/Peter Ogden
Murray Consultants Tel: +353 1 498 0300
Pauline McAlester
ABOUT PROVIDENCE RESOURCES
Providence Resources is an Irish based Oil and Gas Exploration Company
with a portfolio of appraisal and exploration assets located offshore
Ireland. Providence's shares are quoted on AIM in London and the ESM in
Dublin.
ANNOUNCEMENT
This announcement has been reviewed by Dr John O'Sullivan, Technical
Director, Providence Resources P.l.c. John is a geology graduate of
University College, Cork and holds a Masters in Applied Geophysics from
the National University of Ireland, Galway. He also holds a Masters in
Technology Management from the Smurfit Graduate School of Business at
University College Dublin and a doctorate in Geology from Trinity
College Dublin. John is a Chartered Geologist and a Fellow of the
Geological Society of London. He is also a member of the Petroleum
Exploration Society of Great Britain, the Society of Petroleum Engineers
and the Geophysical Association of Ireland. John has more than 25 years
of experience in the oil and gas exploration and production industry
having previously worked with both Mobil and Marathon Oil. John is a
qualified person as defined in the guidance note for Mining Oil & Gas
Companies, March 2006 (London Stock Exchange). Definitions in this press
release are consistent with SPE guidelines. SPE/WPC/AAPG/SPEE Petroleum
Resource Management System 2007 has been used in preparing this
announcement.
ABOUT FEL 2/14 - DRUID & DROMBEG
During the initial pre-FEL 2/14 authorisation phase (Licensing Option
11/9 - 2011 through 2013), Providence and Sosina identified two large
vertically stacked Paleocene ('Druid') and Lower Cretaceous ('Drombeg')
fan systems with notable Class II amplitude versus offset ("AVO")
anomalies primarily from 2D seismic data acquired in 2008. Providence
and Sosina subsequently agreed to underwrite a multi-client 3D seismic
survey over the area. This 3D survey was acquired by Polarcus in the
summer of 2014 and was subsequently processed by ION Geophysical in
2014/15. In September 2015, Providence and Sosina entered into a
Strategic Exploration Collaboration Project with Schlumberger.
In April 2016, the results of the Strategic Exploration Collaboration
Project with Schlumberger were announced:
DRUID (PALEOCENE)
-- Two fans located c. 1,750 m BML and structurally up-dip from a potential
significant fluid escape feature from the underlying pre-Cretaceous
Diablo Ridge
-- Cumulative in-place un-risked prospective resources of 3.180 BBO (PMean)
-- Fan 1 - 984 MMBO (PMean)
-- Fan 2 - 2,196 MMBO (PMean)
-- Pre-stack seismic inversion and regional rock physics analysis shows
Druid is consistent with a highly porous (30%) and high net-gross, light
oil-filled sandstone reservoir system up to 85 metres thick
-- A depth conformant Class II AVO anomaly is present and synthetic forward
modelling of an oil-water contact correlates with the observed seismic
response
-- Spectral decomposition, seismic compactional drape and mounding are
reflective of a large sand-rich submarine fan system with no significant
internal faulting and clear demonstration of an up-dip trap mechanism
-- Geomechanical analysis using regional well and high resolution seismic
velocity data indicates that Druid is normally pressured and the top seal
is intact
DROMBEG PROSPECT (LOWER CRETACEOUS)
-- Located c. 2,750 m BML and structurally up-dip from a potential
significant fluid escape feature from the underlying pre-Cretaceous
Diablo Ridge
-- In-place un-risked prospective resource of 1.915 BBO (PMean)
-- Pre-stack seismic inversion and regional rock physics analysis shows
Drombeg is consistent with a highly porous (20%), light oil-filled
sandstone reservoir system up to 45 metres thick
-- A depth conformant Class II AVO anomaly is present and spectral
decomposition is reflective of a large sand-rich submarine fan system
with no significant internal faulting, and supports an up-dip trap
mechanism
-- Geomechanical analysis using regional well and high resolution seismic
velocity data indicates that Drombeg is over-pressured with an intact top
seal
ABOUT STENA ICEMAX
Stena IceMAX is the world's first dynamically positioned, dual mast
ice-class drillship. The Stena IceMAX is a Harsh Environment DP Class 3
drillship capable of drilling in water depths up to 10,000ft. The IceMAX
has on-board 2 x BOP's, each 18 3/4" x 15,000psi Cameron "TL" BOP c/w ST
Locks, and uses Cameron Load King riser. The vessel was delivered in
April 2012.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Providence Resources plc via Globenewswire
http://www.providenceresources.com/html/
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January 23, 2017 02:00 ET (07:00 GMT)
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