PROVIDENCE RES. Providence Resources P.L.C : Licence Update, Southern Porcupine Basin

 
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: [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. 
 
   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/ 
 

(END) Dow Jones Newswires

January 23, 2017 02:00 ET (07:00 GMT)

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