Operational Update - Providence Completes Spanish Point 3D Seismic
Survey
(Thomson Reuters ONE) - OPERATIONAL UPDATE PROVIDENCE COMPLETES SPANISH POINT 3D SEISMIC SURVEYProvidence Resources P.l.c., ('Providence') the London (AIM) andDublin (IEX) listed oil and gas exploration and development company,is pleased to announce that it has successfully completed acquisitionoperations on its Spanish Point 3D seismic survey. This 3D seismicsurvey programme covered in excess of a c.300 km2 area primarily overthe Jurassic Spanish Point gas condensate discovery and was acquiredusing the BOS Angler 3D seismic survey vessel. Providence has awardedthe data processing contract to WesternGeco Limited. Providence (56%)operates the Spanish Point licence (FEL 2/04) on behalf of itspartners Chrysaor E&P Ireland (30%) and Sosina Exploration (14%).Contacts:Providence Resources PlcTel: +353 1 2194074Tony O'Reilly, Chief ExecutivePowerscourtTel: +44 207 250 1446Rory Godson/Elizabeth RousMurrayConsultantsTel: +353 1 498 0300Pauline McAlesterExplanatory NotesAbout ProvidenceProvidence Resources Plc is an independent oil and gas explorationand production company listed onthe AIM market in London and on Dublin's IEX market. The Company wasfounded in 1997, but with rootsgoing back to 1981 when it predecessor company, Atlantic ResourcesPlc was formed by a group ofinvestors led by Sir Anthony O'Reilly. Providence's active oil andgas portfolio includes interests inIreland, the United Kingdom, the United States (Gulf of Mexico) andWest Africa (Nigeria). Providence'sportfolio is balanced between production, appraisal and explorationassets, as well as being diversifiedgeographically. Comprehensive information on Providence and its oiland gas portfolio, including all pressreleases, annual reports and interim reports are available fromProvidence's website at www.providenceresources.com.About Spanish PointProvidence holds a 56% interest and is operator of FEL 2/04, whichcovers blocks 35/8 & 9 situated in thePorcupine Basin, off the west coast of Ireland. The blocks aresituated in 300-400 metres of water and arelocated approximately 200 km off the coast. Spanish Point wasdiscovered in 1981 by Phillips Petroleum and aconsortium which included Atlantic Resources Plc, Providence'spredecessor company. The discovery well(35/8-2) flowed c. 1,000 BOPD and c. 5 MMSCFGPD from a hydrocarboncolumn of c. 1,400 ft in sandstones of Upper Jurassic age. However,due to a combination of low commodity prices, high cost ofdevelopment and lack of an indigenous gas market and infrastructureat that time, the project was not declared economic and the licencewas subsequently relinquished. Providence applied for and becameoperator of the Spanish Point licence in November 2004 which has a 15year-term. Providence's geological team carried out a geological andgeophysical analysis which supported and improved the 1981 post-drillanalysis. The combination of this new analysis, coupled with advancesin technology and an improved oil/gas price regime, suggest that acommercial development of Spanish Point might be possible.In August 2008, Providence, together with its partner Sosina, signeda staged farm-out agreement with Chrysaor Holdings Limited, aprivately owned development led company. The terms of the farm-outagreement provide for Chrysaor to conduct a significant appraisalwork programme on the Spanish Point discovery in return for a minimum30% interest in Spanish Point. Chrysaor then has the option to earnup to a maximum 70% interest in the event that two wells aresubsequently drilled on Spanish Point. The agreement is subject tocertain milestones being achieved with an initial commitment byChrysaor to fund the budgeted cost of a 3D seismic programme asconsideration for the initial 30% interest. Chrysaor may thenundertake to finance the drilling of up to two appraisal wells whereit will commit not less than 60% cost share, whilst also capping theother partners' cost share, to earn an additional interest of up to40%, thereby reducing the other partners' stakes pro rata.The original 35/8-2 Spanish Point discovery well flowed c.1,000 BOPDand c. 5 MMSCFGPD from one of four logged hydrocarbon bearingintervals. Third party modeling of these well data has suggested thatan optimally placed and stimulated development well could flow atsignificantly higher rates from all hydrocarbon bearing intervals.The partners considered that the acquisition of a 3D seismic surveyover Spanish Point was vital in order to further enhance the detailedunderstanding of the reservoir, as well as to optimise potentialfuture well placement. The survey was designed to accommodate futuretime lapse 3D seismic surveying, which has been demonstrated to beparticularly effective in monitoring fluid movement during fieldproduction.AnnouncementIn accordance with the AIM Rules - Guidance for Mining and Oil & GasCompanies, the information contained in this announcement has beenreviewed and approved by John O'Sullivan, Exploration Manager ofProvidence Resources P.l.c.. John O'Sullivan is a Geology graduate ofUniversity College Cork and holds a Masters in Geophysics from TheNational University of Ireland, Galway. John also holds a Masters inTechnology Management from the Smurfit Graduate School of Business atUniversity College Dublin and is presently completing a dissertationleading to a PhD in Geology at Trinity College, Dublin. John is aFellow of the Geological Society and a member of the PetroleumExploration Society of Great Britain. He has 19 years experience inthe oil and gas exploration and production industry and is aqualified person as defined in the guidance note for Mining Oil & GasCompanies, March 2006 of the London Stock Exchange.Glossary of Terms UsedBOPD Barrels ofOil per DayMMSCFGPD Millions of CubicFeet of Gas Per DaySPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has beenused in preparing this Announcement.---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 28.07.2009 - 12:16 Uhr
Sprache: Deutsch
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