PROVIDENCE RES. Providence Resources P.L.C - Licence Update - Frontier Exploration Licence 2/14 - Southern Porcupine Basin

 
TIDMPVR 
 
 
   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
   LICENCE UPDATE 
 
   FRONTIER EXPLORATION LICENCE 2/14 
 
   SOUTHERN PORCUPINE BASIN 
 
 
   -- APPOINTMENT OF WELL MANGEMENT COMPANY FOR THE 2017 DRUID EXPLORATION WELL 
      PROGRAMME 
 
   -- REVISED DRUID WELL COST ESTIMATE OF C. $35 MILLION 
 
 
   Dublin and London - August 31, 2016 - Providence Resources P.l.c. (PVR 
LN, PRP ID), the Irish based Oil and Gas Exploration Company, today 
provides an update on 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%). 
FEL 2/14 contains the Paleocene "Druid" and the Lower Cretaceous 
"Drombeg" exploration prospects.  An exploration well is currently being 
planned to drill the "Druid" prospect in June 2017, subject to 
regulatory consents. 
 
   Appointment of Well Management Company 
 
   Following a recent public procurement process, Providence and Sosina 
have appointed Senergy Wells Limited ("Senergy"), a wholly owned 
subsidiary of Lloyds Register ("LR"), to provide integrated well 
management services for the upcoming planned 2017 Druid drilling 
programme.  Under the terms of the contract, Senergy will provide 
management and well engineering services for the design and construction 
of the Druid deep-water well under the LR Global Management System - 
Well Project Delivery Process, reflecting the best of industry practice 
and standards to provide safe, effective and efficient well operations. 
 
   30% Reduction in Well Cost Estimate 
 
   Based on updated market rates and definition of the preliminary well 
basis of design obtained through the well management tender process, the 
latest gross (100%) well cost for the Druid exploration well is now 
estimated at c. $35 million, with the final cost subject inter alia to 
the relevant service contracts being put in place and approved well 
design.  This updated well cost estimate of $35 million compares to the 
previous estimate of $46 million, which was based off provisional 
internally generated estimates. 
 
 
 
 
INVESTOR ENQUIRIES 
Providence Resources P.l.c.             Tel: [phone] 
Tony O'Reilly, Chief Executive Officer 
 
 Cenkos Securities plc                   Tel: [phone] 
Neil McDonald/Derrick Lee 
 
J&E Davy                                Tel: [phone] 
Anthony Farrell 
 
MEDIA ENQUIRIES 
Powerscourt                             Tel: [phone] 
Lisa Kavanagh/Peter Ogden 
 
Murray Consultants                      Tel: [phone] 
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. 
 
   ABOUT SENERGY AND LLOYD's REGISTER 
 
   On 1 July 2016, the LR Senergy brand name was retired and integrated 
into the corporate brand of Lloyd's Register. All services remain in 
place and all legal entities remain unchanged.  Our combined 
capabilities mean Lloyd's Register will continue to offer our clients 
unrivalled expertise, fresh and widely trusted insight and new 
investment opportunities.  We have broadened our technical capability to 
help develop and manage oil and gas fields and support alternative 
energy projects and power generation assets.  This means we can offer 
all our clients industry-leading advice, from the reservoir to the 
refinery and beyond; a uniquely comprehensive portfolio of services to 
the upstream sectors, from exploration to transportation and production; 
life-of-field services, from inception to decommissioning; and offer 
opportunities for consulting staff to work closely with industry leaders 
every step of the way. 
 
   LR is a market leader in all aspects of Well Project Management, well 
design, engineering, procurement, contracting, and operational 
management, with a proven and established track record of having 
successfully delivered multiple wells projects for a wide variety of 
Clients.  The Project Management of the planning and execution of well 
activities is core business to LR, which includes all drilling, 
completion, well testing, work-over, re-entry and well abandonment / 
suspension activities. 
 
   Lloyd's Register Group Limited is a technical and business services 
organisation and a maritime classification society, wholly owned by the 
Lloyd's Register Foundation, a UK charity dedicated to research and 
education in science and engineering. Founded in 1760, the Group is 
based in London and revenues in excess of GBP1.0 billion. 
 
   ABOUT DRUID 
 
   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 subsequently processed by ION Geophysical in 2014/15. 
 
 
   In September 2015, the Company entered into a Strategic Exploration 
Collaboration Project with Schlumberger. 
 
   In April 2016, the Company published the main results of this Project 
relating to Druid: 
 
   --  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) 
 
   o   Fan 1 - 984 MMBO (PMean) 
 
   o   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 
 
   --Geo-mechanical analysis using regional well and high resolution 
seismic velocity data indicates that Druid is normally pressured and the 
top seal is intact 
 
 
 
   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/ 
 

(END) Dow Jones Newswires

August 31, 2016 02:00 ET (06:00 GMT)

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