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

 
TIDMPVR 
 
 
   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
   Operational Update 
 
   Frontier Exploration Licence 2/14 
 
   Southern Porcupine Basin 
 
 
   -- Contract signed for the Stena IceMAX drill-ship 
 
   -- Planned spud date for the 53/6-A exploration well is June 2017 
 
 
   Dublin and London - November 24, 2016 - Providence Resources P.l.c. (PVR 
LN, PRP ID), the Irish based Oil and Gas Exploration Company, today 
provides an update on the Frontier Exploration Licence ("FEL") 2/14 
drilling project, 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%), (collectively referred to the "JV Partners"). 
FEL 2/14 contains the Paleocene "Druid" and the Lower Cretaceous 
"Drombeg" exploration prospects. 
 
   Stena IceMAX Rig Contract 
 
   On behalf of the JV Partners, Providence has signed a contract for the 
provision of a Harsh Environment Deepwater Mobile Drilling Unit (the 
"Contract") with Stena Drillmax Ice Limited ("Stena"), a wholly owned 
subsidiary of Stena International S.A., for the Stena IceMAX drill-ship. 
The Stena IceMAX is a modern harsh environment dual derrick drill-ship 
designed to operate in water depths of up to c. 3 km. The 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.  The operational rig rate is $185,000 per day. 
 
   In addition to the finalisation of the Contract, other key service 
contracts are now being prepared for the planned drilling operations. 
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 delighted to have signed this rig contract with Stena.  Our 
previous exploration collaboration project with Schlumberger highlighted 
the significant hydrocarbon potential of FEL 2/14 which we will now be 
evaluating using the high specification Stena IceMAX drill-ship. The 
signing of this rig contract is a major milestone in the project plan 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 
John O'Sullivan, Technical Director 
 
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 STENA DRILLING 
 
   Stena Drilling is one of the world's leading companies in the 
development, construction and operation of offshore drilling rigs and 
drill-ships. Stena's fleet consists of four ultra-deep-water drill-ships 
and three semi-submersible rigs. 
 
 
 
   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. 
 
   ABOUT FEL 2/14 - DRUID & DROMEG 
 
   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, Providence and Sosina entered into a Strategic 
Exploration Collaboration Project with Schlumberger. 
 
   In April 2016, the main results of this Project 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) 
 
   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 
 
   --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 
 
   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

November 24, 2016 02:00 ET (07:00 GMT)

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