Ireland Operations

CELTIC SEA

Standard Exploration Licence 2/07

HOOK HEAD (72.5%, Operator)

The Hook Head oil discovery lies approximately 60 km off the south coast of Ireland and is situated in c. 70m water depth. The Hook Head structure is a large mid-basinal anticline where four wells have been drilled to date, all of which encountered hydrocarbon bearing sands. Two of these wells were drilled by Providence in 2007/08 with oil and gas encountered in both, although operational constraints resulted in limited test data. Further evaluation of the field suggests that the majority of the resource (estimated at c.120 MMBO) lies in the central part of the structure, with the north and south flanks providing additional potential incremental resources for any future development in the area. This central area will be the focus of any planned future drilling. Providence has an option to use the GSF Arctic III rig to drill an appraisal well at Hook Head.  This option must be declared once the Barryroe appraisal well has been spudded.
 
Partners in the project include, Atlantic Petroleum and Sosina Exploration.

DUNMORE (72.5%, Operator)

The Dunmore discovery is located approximately 20 km north of the Hook Head discovery. The discovery well, 50/6-1, was drilled by the then Operator, Gulf Oil in 1985/86, and flowed at a rate of approximately 2,100 BOPD of high quality (44º API) oil. During 2008, Providence drilled the 50/6-4 appraisal well on the Dunmore structure and whilst the well failed to prove the lateral extent of the hydrocarbon bearing Upper Jurassic sands, a new oil bearing carbonate interval was intersected. Studies in relation to this new oil bearing zone are presently ongoing.

Other partners in the project include, Atlantic Petroleum and Sosina Exploration.

HELVICK (62.5%, Operator)

The Helvick oil field is located in block 49/9, some 36 kilometres off the south coast of Ireland. The Helvick discovery well, 49/9-2, was drilled in 1983 and flowed at a cumulative rate of c. 9,900 BOPD and 7.5 MMSCFGD. Three appraisal wells were drilled in the late 1980s to delineate the field. In 2000, Providence drilled the 49/9-6Z well which was tested at rates of c. 5,200 BOPD. Further detailed analysis indicated that the Helvick reservoir is compartmentalised and would require further appraisal, particularly in the surrounding area. Providence concluded that development of Helvick on a stand-alone basis could not be justified given market conditions at that time. However, recent modern analysis of well test data suggests that wells could produce oil at significant rates under primary depletion. This, together with improved commodity prices, indicates that Helvick could provide the potential for a small field development. Accordingly, the Company is looking at a number of low cost development options for the field and in 2010, agreed to assign a 10% non-operated interest in the field to Lansdowne Oil and Gas plc.

Partners in the project include, Lansdowne Oil and Gas Plc, Atlantic Petroleum and Sosina Exploration.

ARDMORE / NEMO (54.4%, Operator)

The Ardmore gas field lies approximately 48 km north-east of the Kinsale Head gas field.  The discovery well, 49/14-1, was drilled in 1975 by the then Operator, Marathon, and flowed at an aggregate rate of circa 8 MMSCFGD.  In 2006, Providence completed a high-resolution pseudo-3D seismic survey over the field. A recent assessment of these data, together with a re-evaluation of the original well test data, indicates a recoverable reserve potential of c. 30 BSCF within the uppermost reservoir interval.

In addition, deeper oil reservoir intervals termed Nemo are thought to contain up to 230 MMBO of heavy 16º API oil. In 2010, the partners agreed a two step  farm out in the block to Nautical Petroleum, a UK heavy oil specialist, which involves Nautical funding and carrying out a focused work programme on the development feasibility of the Nemo oil discovery in return for 25% equity in the field. Nautical has an option to increase its stake in the field to 65% and take-over operatorship should it elect to drill an appraisal well on Nemo by the end of 2011 should they elect to drill an appraisal well by end of 2011.

Partners in the project include Nautical Petroleum, Atlantic Petroleum and Sosina Exploration.