PROVIDENCE RES. Providence Resources P.L.C. : Technical Update, Porcupine Basin
17 July 2017 - 4:00PM
UK Regulatory
TIDMPVR
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
TECHNICAL UPDATE
LICENCING OPTION 16/27
PORCUPINE BASIN
-- PETROLEUM SYSTEMS MODELLING HIGHLIGHTS SIGNIFICANT AVALON EXPLORATION
PLAY
Dublin and London - July 17, 2017 - Providence Resources P.l.c. (PVR LN,
PRP ID), the Irish based Oil and Gas Exploration Company ("Providence"),
today provides a technical update regarding Licensing Option 16/27 ("LO
16/27") which is located in the central Porcupine Basin, offshore
Ireland and is currently operated by Providence. Following the recently
announced farm-in transaction (ref. RNS dated June 7, 2017) with TOTAL
E&P IRELAND B.V., a wholly owned subsidiary of TOTAL S.A., which is
subject to the Consent of the Minister of State at the Department of
Communications, Climate Action and Environment, the resultant LO 16/27
joint-venture will comprise TOTAL E&P Ireland B.V. (50%, Operator),
Providence (40%) & Sosina Exploration Limited (10%), collectively
referred to as the "JV Partners".
On behalf of the JV Partners, Providence has recently provided the
Petroleum Affairs Division of the Irish Government's Department of
Communications, Climate Action and Environment with its End of Year 1 LO
16/27 Technical Report which was focused on the hydrocarbon potential of
the Paleocene "Avalon" prospect.
A large scale calibrated Petroleum Systems Model (PSM, c. 48,000 km(2) ),
which included the LO 16/27 area, supports the potential of a working
petroleum system in LO 16/27 and demonstrates that the Avalon prospect
could potentially access a total hydrocarbon resource charge of c. 8.67
BBO and c. 21.43 TSCF (equivalent to c. 12 BBOE). Whilst petroleum
systems modelling in emerging frontier basins have inherently high
degrees of uncertainty, the results of this study are directionally very
positive for the potential charging of the Avalon prospect.
Further positive outputs from the PSM indicate that the risk of oil
biodegradation in the Avalon prospect is low to moderate based on the
modelled temporal variations in reservoir temperature. In addition, top
seal integrity for the Avalon prospect was also assessed using inputs
from both the PSM and a parallel basin-wide geo-mechanical modelling
study. This work has positively demonstrated that there is a very low
likelihood of a mechanically breached seal at Avalon based on modelled
pore pressures.
Speaking today, Dr John O'Sullivan, Technical Director of Providence
said:
"The work completed during the first year of Licensing Option 16/27 has
confirmed our view as to the significant hydrocarbon resource potential
of the Paleocene "Avalon" prospect. Whilst the nearby 53/6-A well
programme is currently assessing the similar-aged Paleocene "Druid"
stratigraphic prospect, as well as the deeper Lower Cretaceous "Drombeg"
prospect, Avalon is somewhat differentiated insofar as it demonstrates a
potentially different trapping mechanism with structural closure mapped
in the proximal sediment transport direction. The proximity of Avalon
to the deeper breached "Dunquin North" oil accumulation is also a
potential positive in terms of hydrocarbon sourcing.
We look forward to working with our JV Partners to mature the Avalon
prospect to drillable status."
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 Plc
Providence Resources Plc is an Irish based Oil and Gas Exploration
Company with a portfolio of appraisal and exploration assets located
offshore Ireland. The Company's shares are quoted on AIM in London and
the ESM in Dublin.
ABOUT AVALON
Providence (80%) and Sosina (20%) were awarded Licensing Option 16/27 in
July 2016 as part of the 2015 Atlantic Margin Licensing Round. During
regional interpretation and mapping of vintage 2D seismic reflection
data, Providence identified an areally extensive (c. 550 km(2) )
north-south orientated Paleocene basin-floor channel and fan system
('Avalon') within the axial part of the Porcupine Basin. The Avalon
system, which is located c. 2,500 metres below the seabed, is
interpreted to be sourced from the north of the basin and shales out in
a southerly distal direction. A structural flexure down to the north
negates the requirement for sandstone pinch out in the proximal
direction, greatly improving reservoir sealing potential. The presence
of a thick sandstone interval is indicated by compactional drape
morphologies which are imaged within parts of the system. The
pre-existing Mesozoic structural grain appears to have exerted some
control on deposition as evidenced by thickening of the system within
pre-existing structural lows. Whilst limited seismic reflection gather
data were available during the evaluation phase, the available data
suggest the potential for a depth-conformant amplitude versus offset
('AVO') anomaly similar to the nearby Druid prospect in FEL 2/14. The
main element of the agreed work programme during the 2-year Option
period is the purchase, reprocessing and interpretation of existing 2D
seismic reflection data.
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 of the 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.
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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