PROVIDENCE RES. Providence Resources P.L.C - Licence Update - Frontier Exploration Licence 2/14 - Southern Porcupine Basin
August 31 2016 - 1:00AM
UK Regulatory
TIDMPVR
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
LICENCE UPDATE
FRONTIER EXPLORATION LICENCE 2/14
SOUTHERN PORCUPINE BASIN
-- APPOINTMENT OF WELL MANGEMENT COMPANY FOR THE 2017 DRUID EXPLORATION WELL
PROGRAMME
-- REVISED DRUID WELL COST ESTIMATE OF C. $35 MILLION
Dublin and London - August 31, 2016 - Providence Resources P.l.c. (PVR
LN, PRP ID), the Irish based Oil and Gas Exploration Company, today
provides an update on Frontier Exploration Licence ("FEL") 2/14, which
lies in c. 2,250 metre water depth in the southern Porcupine Basin and
is located c. 220 kilometres off the south west coast of Ireland. The
licence is operated by Providence Resources P.l.c. ("Providence") (80%)
on behalf of its partner Sosina Exploration Limited ("Sosina") (20%).
FEL 2/14 contains the Paleocene "Druid" and the Lower Cretaceous
"Drombeg" exploration prospects. An exploration well is currently being
planned to drill the "Druid" prospect in June 2017, subject to
regulatory consents.
Appointment of Well Management Company
Following a recent public procurement process, Providence and Sosina
have appointed Senergy Wells Limited ("Senergy"), a wholly owned
subsidiary of Lloyds Register ("LR"), to provide integrated well
management services for the upcoming planned 2017 Druid drilling
programme. Under the terms of the contract, Senergy will provide
management and well engineering services for the design and construction
of the Druid deep-water well under the LR Global Management System -
Well Project Delivery Process, reflecting the best of industry practice
and standards to provide safe, effective and efficient well operations.
30% Reduction in Well Cost Estimate
Based on updated market rates and definition of the preliminary well
basis of design obtained through the well management tender process, the
latest gross (100%) well cost for the Druid exploration well is now
estimated at c. $35 million, with the final cost subject inter alia to
the relevant service contracts being put in place and approved well
design. This updated well cost estimate of $35 million compares to the
previous estimate of $46 million, which was based off provisional
internally generated estimates.
INVESTOR ENQUIRIES
Providence Resources P.l.c. Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive Officer
Cenkos Securities plc Tel: +44 131 220 9771
Neil McDonald/Derrick Lee
J&E Davy Tel: +353 1 679 6363
Anthony Farrell
MEDIA ENQUIRIES
Powerscourt Tel: +44 207 250 1446
Lisa Kavanagh/Peter Ogden
Murray Consultants Tel: +353 1 498 0300
Pauline McAlester
ABOUT PROVIDENCE RESOURCES
Providence Resources is an Irish based Oil and Gas Exploration Company
with a portfolio of appraisal and exploration assets located offshore
Ireland. Providence's shares are quoted on AIM in London and the ESM in
Dublin.
ABOUT SENERGY AND LLOYD's REGISTER
On 1 July 2016, the LR Senergy brand name was retired and integrated
into the corporate brand of Lloyd's Register. All services remain in
place and all legal entities remain unchanged. Our combined
capabilities mean Lloyd's Register will continue to offer our clients
unrivalled expertise, fresh and widely trusted insight and new
investment opportunities. We have broadened our technical capability to
help develop and manage oil and gas fields and support alternative
energy projects and power generation assets. This means we can offer
all our clients industry-leading advice, from the reservoir to the
refinery and beyond; a uniquely comprehensive portfolio of services to
the upstream sectors, from exploration to transportation and production;
life-of-field services, from inception to decommissioning; and offer
opportunities for consulting staff to work closely with industry leaders
every step of the way.
LR is a market leader in all aspects of Well Project Management, well
design, engineering, procurement, contracting, and operational
management, with a proven and established track record of having
successfully delivered multiple wells projects for a wide variety of
Clients. The Project Management of the planning and execution of well
activities is core business to LR, which includes all drilling,
completion, well testing, work-over, re-entry and well abandonment /
suspension activities.
Lloyd's Register Group Limited is a technical and business services
organisation and a maritime classification society, wholly owned by the
Lloyd's Register Foundation, a UK charity dedicated to research and
education in science and engineering. Founded in 1760, the Group is
based in London and revenues in excess of GBP1.0 billion.
ABOUT DRUID
During the initial pre-FEL 2/14 authorisation phase (Licensing Option
11/9 - 2011 through 2013), Providence and Sosina identified two large
vertically stacked Paleocene ('Druid') and Lower Cretaceous ('Drombeg')
fan systems with notable Class II amplitude versus offset ("AVO")
anomalies primarily from 2D seismic data acquired in 2008. Providence
and Sosina subsequently agreed to underwrite a multi-client 3D seismic
survey over the area. This 3D survey was acquired by Polarcus in the
summer of 2014 and subsequently processed by ION Geophysical in 2014/15.
In September 2015, the Company entered into a Strategic Exploration
Collaboration Project with Schlumberger.
In April 2016, the Company published the main results of this Project
relating to Druid:
-- Two fans located c. 1,750 m BML and structurally up-dip from a
potential significant fluid escape feature from the underlying
pre-Cretaceous Diablo Ridge
-- Cumulative in-place un-risked prospective resources of 3.180 BBO
(PMean)
o Fan 1 - 984 MMBO (PMean)
o Fan 2 - 2,196 MMBO (PMean)
-- Pre-stack seismic inversion and regional rock physics analysis shows
Druid is consistent with a highly porous (30%) and high net-gross, light
oil-filled sandstone reservoir system up to 85 metres thick
--A depth conformant Class II AVO anomaly is present and synthetic
forward modelling of an oil-water contact correlates with the observed
seismic response
--Spectral decomposition, seismic compactional drape and mounding are
reflective of a large sand-rich submarine fan system with no significant
internal faulting and clear demonstration of an up-dip trap mechanism
--Geo-mechanical analysis using regional well and high resolution
seismic velocity data indicates that Druid is normally pressured and the
top seal is intact
ANNOUNCEMENT
This announcement has been reviewed by Dr. John O'Sullivan, Technical
Director, Providence Resources P.l.c. John is a geology graduate of
University College, Cork and holds a Masters in Applied Geophysics from
the National University of Ireland, Galway. He also holds a Masters in
Technology Management from the Smurfit Graduate School of Business at
University College Dublin and a doctorate in Geology from Trinity
College Dublin. John is a Chartered Geologist and a Fellow of the
Geological Society of London. He is also a member of the Petroleum
Exploration Society of Great Britain, the Society of Petroleum Engineers
and the Geophysical Association of Ireland. John has more than 25 years
of experience in the oil and gas exploration and production industry
having previously worked with both Mobil and Marathon Oil. John is a
qualified person as defined in the guidance note for Mining Oil & Gas
Companies, March 2006 of the London Stock Exchange.
Definitions in this press release are consistent with SPE guidelines.
SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been
used in preparing this announcement.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Providence Resources plc via Globenewswire
http://www.providenceresources.com/html/
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