Offshore Texas, USA – Gulf of Mexico
Potential Field Rates: 14 MMSCFGPD, 280 BOPD (c. 100 BOEPD net to Providence)
Recoverable Resources: 6.6 BCFE
Operator: Peregrine Oil & Gas (25%),
Providence Interest: (5%), CMI (9%), Pruet Offshore 10%,
Warren American Offshore (6%), HDO Gulf Energy (5%),
Cottesloe Oil & Gas (30%), Reeder & HRB Oil & Gas (10%).

High Island A-268 is located on the shelf in the Gulf of Mexico. The block lies in 170 feet of water, approximately 118 Km from the shore. The OCS-G 22268#1 well targeting seismic amplitude anomalies was drilled in Jan/Feb 2007 and logged pay in Pleistocene/Pliocene aged sands (Lenticulina & Basal Nebraskan) over an interval from 6800ft to 9800ft MD. Reservoir studies have suggested that this well has the potential to produce at initial cumulative rates of 14-27 MMSCFGD (90-180 BOEPD net to Providence), however initial off-take rates are likely to be more conservative (8-15 MMSCFGD), as this will maximise reserve recovery. Providence’s net share of this 6.6 BSCFGE discovery is 42 MBOE or a c.10% increase in the company’s 2P reserves, pre-Singleton transaction.

A second well was successfully drilled on the High Island A-268 block August 2007, with pre-drill gross recoverable volumes estimated at between 3.5 to 5.8 BSCFG. The actual drilling results met pre-drill expectations with the discovery of 2 high quality gas bearing sands with a combined net gas pay equal to the pre-drill expectations.
A production liner has been set across the reservoir intervals, and completion operations are currently underway.
The A2 well will produce gas from the lower reservoir first. Once the reserves from the lower reservoir have been fully exploited, the reserves in upper reservoir will then be produced, maximizing overall gas recovery in this well. The A1 well commenced production on 9th September 2007.