PROVIDENCE RESOURCES P.l.c.
Following the Providence Resources P.l.c. (“Providence”) Annual General Meeting held on 24 September 2003, Providence is pleased to confirm that the Minister for Communications, Marine and Natural Resources has granted two new Licensing Options taking in additional tranches of acreage offshore Ireland, in the Celtic Sea and in St. George’s Channel.
The portfolio of prospects and discoveries within these two new Licensing Options areas represents an exciting combination of existing discoveries supplemented by new large prospects with common synergies and upside potential and plays an integral part in Providence’s collective strategy for the Irish offshore. Providence, as Operator, holds an 80% interest in these new Licensing Options, with Midmar Energy Limited holding a 20% interest.
The new Licensing Options, commencing on 1 October 2003, are each for a 3 year term reflecting the phased planned work programme, including first improving the quality of existing available seismic and well data using modern analytical techniques and then optimising techno-economics within a collective drilling and development approach. Considerable research and analysis has been undertaken by Providence in assembling this portfolio, with supporting research having been conducted at The National Institute for Technology Management, University College Dublin.
Speaking following the announcement, Dr. Brian Hillery, Chairman of Providence, said: “Securing of these new Licensing Options is an important step forward for Providence’s collective strategy, strengthening our portfolio which will allow us to add value to our offshore Ireland activities.”
The portfolio has been split into 2 Licensing Options which reflects their geographical location and geological status. Licensing Option 03/8 (covering an area of 340 sq. kms.) is in the North Celtic Sea Basin (see Note 1a) and Licensing Option 03/7 (covering an area of 560 sq. kms.) is in the St. George’s Channel Basin (see Note 1b). The Celtic Sea area, where the Company has been consistently active for 20 years, is enjoying a renaissance with the development of the Ramco-operated Seven Heads gas field via a tie back to the Marathon-operated Kinsale Head gas field facilities. Some of the existing undeveloped discoveries and future discoveries on identified prospects within Providence’s portfolio could potentially benefit from the expanded Celtic Sea production infrastructure at Kinsale and at Seven Heads.
Notes to Editors
The two new Licensing Options, in which Providence (as Operator) holds an 80% interest, refer to the following part block numbers:
Licensing Option 03/8 – North Celtic Sea Basin
Part blocks 49/8, 49/9, 49/13, 49/14 (‘Helvick field and Helvick area’)
Part blocks 49/13, 49/14, 49/18, 49/19 (‘Ardmore’)
Part block 50/11 (‘50/11’)
Part blocks 50/6, 50/7 (‘50/6&7’)
Part blocks 50/8, 50/9 (‘Glandore’)
Licensing Option 03/7 – St. George’s Channel Basin
Part blocks 41/25, 41/30, 42/21, 42/26, 51/1 (‘Dionysus’)
A location map is available electronically.
Separately, Providence also holds, as Operator, a 50% interest in Licensing Option 03/1 (granted in February 2003) containing the Blackrock prospect in the Wealden reservoir (block 49/26 and part blocks 48/30, 48/29, 57/4 and 57/5). The Blackrock prospect is a large faulted four-way dip closed anticline. It lies in about 100 metres of water some 35 kilometres south of the Marathon-operated Kinsale Head gas field and adjacent to the Seven Heads gas field, both of which are being rejuvinated by developments in the Wealden reservoirs.
The 2003 work programme, which involved detailed examination and reprocessing of existing seismic and well data, has indicated the presence of light to medium quality non waxy oil. This is in contrast to Kinsale and Seven Heads, both geographically close to Blackrock, which, whilst being gas prone, have associated underlying waxy oil. Providence has, in examining existing data, identified five target horizons at Blackrock which, management estimate, could contain a potential recoverable volume of up to 613 million barrels of oil. An industry farmout process currently underway will continue for some months as Providence presents the prospect to various interested companies and progresses to negotiations.
(3) Providence was recently awarded a 45% interest (with partners Midmar as Operator 45%; Odegaard UK Limited 10%) in UK part block 14/24 located in the UK Central North Sea adjacent to the Witch Ground Graben which is a prolific oil producing area. The block contains the Skye prospect which is considered highly prospective for oil. The initial term of the licence is for two years from October 2003 during which the planned work programme will comprise of the review and reprocessing of existing subsurface data.
ENDS Thursday 2nd October 2003
For reference:
Providence Resources P.l.c. Tel: 00-353-1-6675740
Tony Odone
Stephen Carroll
Murray Consultants Tel: 00-353-1-4980300
Mark Leech