IRELAND - SOUTHERN PORCUPINE BASIN - FEL 2/14

Frontier Exploration Licence 2/14

ASSETS:
PROVIDENCE EQUITY:
OPERATOR:
PARTNERS:  

DRUID, DROMBEG & DIABLO 
28%
TOTAL
TOTAL,
CAIRN ENERGY PLC,
SOSINA EXPLORATIONS

The Company currently holds a 28% working interest in FEL 2/14, with partners Total (operator, 35%), Cairn (30%) and Sosina (7%). The licence lies in the southern Porcupine Basin, c. 150 km off the west coast and in c. 1,300 m water depth.

 

History

FEL 2/14 was originally awarded to the Company (80%) and partner Sosina (20%) as LO 11/9 in October 2011 as part of the 2011 Irish Atlantic Margin Licensing Round. In April 2014, LO 11/9 was converted into FEL 2/14 with the same working interests.
During the initial pre FEL 2/14 authorisation phase (LO 11/9), the joint venture identified two large vertically stacked Paleocene (“Druid”) and Lower Cretaceous (“Drombeg”) fan systems with notable Class II amplitude versus offset (AVO) anomalies primarily from previously acquired 2D seismic data in 2008. The joint venture subsequently agreed to licence part of 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.
The Company entered into an exploration collaboration agreement with Schlumberger in respect of the southern Porcupine and Goban Spur Basins. During 2016, the results of the Collaborative Project confirmed the significant resource potential of Druid and Drombeg and a decision was taken to advance a drilling programme.

Following a capital raise in July 2016, the Company accelerated consenting and operational plans to drill an exploration well on FEL 2/14 in summer 2017. Over this same period, the Company operated a data room process for potential new co-venture partners. This farm-out process resulted in the farm-out of equity in FEL 2/14 to Cairn Energy, whereby Cairn took a 30% interest in FEL 2/14 with Cairn being responsible for 45% of the drilling costs of Druid and Drombeg (up to a cap of US$42 million gross well cost), after which the parties paid their costs according to their equity share.
The Company subsequently agreed an option deal with Total whereby Total had the right to take a 35% interest in FEL 2/14, exercisable 60 working days after the completion of drilling, by agreeing to pay an option fee to Providence and Sosina of gross US$27 million.
In July 2017, the 53/6-1 exploration well was commenced drilling operations using the Stena IceMAX drill-ship targeting the Paleocene Druid Reservoir interval and the Lower Cretaceous Drombeg Reservoir interval encountered. As announced in July and September, both reservoirs were encountered within the pre- drill depth prognosis, but both reservoirs were water bearing. Accordingly, in accordance with the pre-drill plan, the 53/6-1 exploration well was plugged and abandoned.
In December 2017, Total exercised their option to farm-in for a 35% working interest and the assumption of operatorship, which has now been approved by the Irish regulatory authorities. Currently, post well studies are ongoing and the JV partners will evaluate these data in the context of the underlying Diablo exploration prospect.
 

 

Stena IceMax and USS Nimitz - Comparison

 

 

Dimensions            Stena IceMAX              USS Nimitz

Length                                  228m                        333m

Beam (overall)                        42m                          77m

Operating Draft                      12m                        12.5m

 

 

Related press release - 2018

13 July 2018
OPERATIONAL UPDATE - FEL 2/14 - SOUTHERN PORCUPINE BASIN

Related press release - 2017

29 September 2017
Commercial Update - Frontier Exploration Licence 2/14, Southern Porcupine Basin
26 September 2017
Operational Update - Frontier Exploration Licence 2/14, Southern Porcupine Basin
11 September 2017
Operational Update - Drombeg Prospect, 53/6-1 Exploration Well - FEL 2/14, Southern Porcupine Basin
4 August 2017
Operational Update - Druid Prospect, 53/6-1 Exploration Well - FEL 2/14, Southern Porcupine Basin
12 July 2017
Operational Update - Well Spud - FEL 2/14, Southern Porcupine Basin
28 June 2017
Operational Update - FEL 2/14, Southern Porcupine Basin
20 June 2017
Commercial Update, FEL2/14, Exclusive Option - Receipt of Option Payment
7 June 2017
Commercial Update, FEL 2/14, Exclusive Option, Southern Porcupine Basin
5 June 2017
Licence Update - Frontier Exploration Licence 2/14, Southern Porcupine Basin
8 March 2017
Commercial Update - Frontier Exploration Licence 2/14, Southern Porcupine Basin
23 January 2017
Licence Update - Frontier Exploration Licence 2/14, Southern Porcupine Basin

Related press release - 2016

24 November 2016
Operational Update - FEL 2/14 - Southern Porcupine Basin - Contract signed for the Stena IceMAX drill-ship
1 November 2016
PROVIDENCE ISSUES LETTER OF INTENT FOR THE PROVISION OF A DEEPWATER DRILLING UNIT FOR THE PLANNED 2017 DRUID EXPLORATION WELL
15 September 2016
Operational Update - Frontier Exploration Licence 2/14 - Druid, Southern Porcupine Basin
31 August 2016
LICENCE UPDATE - FEL 2/14 - Druid - Appointment of Well Management Company and Updated Cost Estimates
29 April 2016
Druid & Drombeg - Additional Technical Slides - April 2016
22 April 2016
TECHNICAL UPDATE ON EXPLORATION COLLABORATION PROJECT - DRUID & DROMBEG PROSPECTS, SOUTHERN PORCUPINE BASIN
11 March 2016
ASSET PORTFOLIO UPDATE - PORCUPINE & GOBAN SPUR BASINS

Related press release - 2015

17 July 2015
TECHNICAL UPDATE DIABLO RIDGE FRONTIER EXPLORATION LICENCE 2/14 SOUTHERN PORCUPINE BASIN, OFFSHORE IRELAND
10 June 2015
TECHNICAL UPDATE - DRUID EXPLORATION PROSPECT, SOUTHERN PORCUPINE BASIN, OFFSHORE IRELAND
3 March 2015
TECHNICAL UPDATE - DROMBEG PROSPECT, SOUTHERN PORCUPINE BASIN, OFFSHORE IRELAND

Related press release - 2014

22 September 2014
UPDATE ON IRISH SEISMIC SURVEYS
30 June 2014
3D SEISMIC SURVEYING OPERATIONS COMMENCE ON THE DROMBEG OIL PROSPECT, SOUTHERN PORCUPINE BASIN
24 February 2014
TECHNICAL UPDATE - DROMBEG PROSPECT, SOUTHERN PORCUPINE BASIN
20 January 2014
TECHNICAL UPDATE - DROMBEG PROSPECT, SOUTHERN PORCUPINE BASIN

Related press release - 2012

12 November 2012
DROMBEG PROSPECT - TECHNICAL UPDATE - (INVERSION VOLUMES)
7 August 2012
DROMBEG PROSPECT, SOUTH PORCUPINE BASIN - TECHNICAL UPDATE

Related press release - 2011

17 October 2011
PROVIDENCE AWARDED FOUR NEW LICENSING OPTIONS IN 2011 IRISH ATLANTIC MARGIN ROUND

Related press release - 2008

6 May 2008
PROJECT UPDATE - DROMBEG PROSPECT