PROVIDENCE RESOURCES P.l.c.
At today’s Providence Resources P.l.c. (“Providence”) Annual General Meeting shareholders were updated on corporate activities relating to the Company's portfolio of exploration interests. The highlights were:
The 2003 work programme on the Company's Irish Celtic Sea Blackrock prospect, 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 exisiting 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. Providence, as Operator, currently holds a 50% interest in the Blackrock prospect and retains the right to increase its interest to 75% at any time during 2003 by contributing an equivalent percentage of costs toward the 2003 work programme. Midmar Energy Limited currently holds the remaining 50% interest.
Also in Ireland, Providence announced the award of 2 new Licensing Options, each for a 3 year term, in the Celtic Sea and in St. George’s Channel. These represent an exciting combination of existing discoveries supplemented by new large prospects with common synergies and upside potential. This is an integral part of Providence’s collective strategy for the Irish offshore. The phased planned work programme, includes first improving the quality of existing available seismic and well data quality using modern analytical techniques and then optimising techno-economics within a collective drilling and development approach. Providence, as Operator, holds an 80% interest in these new Licensing Options, with Midmar Energy Limited holding a 20% interest.
In the UK, Providence has also focussed on its Skye oil prospect, located in the UK Central North Sea, adjacent to the Witch Ground Graben which is a prolific oil producing area. The initial term of the licence is for two years from 1 October 2003 during which the planned work programme will comprise of the review and reprocessing of existing subsurface data. Providence holds a 45% interest, with Midmar as Operator also holding 45% and Odegaard UK Limited holding 10%.
Work programmes relating to each of these interests are at a relatively preliminary stage, and significant further appraisal and drilling work is required to assess the potential recoverable volumes. However, indications to date suggest that, on an unrisked basis, Providence’s combined interests could contain an estimated potential recoverable volume of up to 870 million barrels of oil equivalent. The Directors therefore believe that there is potential for significant value leverage given Providence’s current low market capitalisation.
Speaking at the Annual General Meeting, Dr Brian Hillery Chairman of Providence said:
“Providence now operates the widest spread of interests in the Celtic Sea, an area in which we have built up considerable expertise. Our portfolio has significant potential for future success.”
ENDS Wednesday 24th September 2003
For reference:
Providence Resources P.l.c.
Dr. Brian Hillery, Chairman Tel: 00-353-1-6675740
Stephen Carroll / Tony Odone
Murray Consultants
Pauline McAlester Tel: 00-353-1-4980300
Mark Leech