PROVIDENCE RES. Providence Resources P.L.C. Operational Update Frontier Exploration Licence 2/14 Southern Porcupine Basin
November 24 2016 - 1:00AM
UK Regulatory
TIDMPVR
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Operational Update
Frontier Exploration Licence 2/14
Southern Porcupine Basin
-- Contract signed for the Stena IceMAX drill-ship
-- Planned spud date for the 53/6-A exploration well is June 2017
Dublin and London - November 24, 2016 - Providence Resources P.l.c. (PVR
LN, PRP ID), the Irish based Oil and Gas Exploration Company, today
provides an update on the Frontier Exploration Licence ("FEL") 2/14
drilling project, 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%), (collectively referred to the "JV Partners").
FEL 2/14 contains the Paleocene "Druid" and the Lower Cretaceous
"Drombeg" exploration prospects.
Stena IceMAX Rig Contract
On behalf of the JV Partners, Providence has signed a contract for the
provision of a Harsh Environment Deepwater Mobile Drilling Unit (the
"Contract") with Stena Drillmax Ice Limited ("Stena"), a wholly owned
subsidiary of Stena International S.A., for the Stena IceMAX drill-ship.
The Stena IceMAX is a modern harsh environment dual derrick drill-ship
designed to operate in water depths of up to c. 3 km. The Contract
provides for one firm well, plus an additional option, which is
electable at the discretion of the JV Partners for the drilling of a
second follow-on well. The operational rig rate is $185,000 per day.
In addition to the finalisation of the Contract, other key service
contracts are now being prepared for the planned drilling operations.
Based on the latest project timeline and, subject to standard regulatory
approvals and consents, the 53/6-A exploration well is currently planned
to spud in June 2017.
Speaking today, Tony O'Reilly, Chief Executive of Providence said:
"We are delighted to have signed this rig contract with Stena. Our
previous exploration collaboration project with Schlumberger highlighted
the significant hydrocarbon potential of FEL 2/14 which we will now be
evaluating using the high specification Stena IceMAX drill-ship. The
signing of this rig contract is a major milestone in the project plan to
enable the drilling of this high impact exploration well during summer
2017."
INVESTOR ENQUIRIES
Providence Resources P.l.c. Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive Officer
John O'Sullivan, Technical Director
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 STENA DRILLING
Stena Drilling is one of the world's leading companies in the
development, construction and operation of offshore drilling rigs and
drill-ships. Stena's fleet consists of four ultra-deep-water drill-ships
and three semi-submersible rigs.
ABOUT STENA ICEMAX
Stena IceMAX is the world's first dynamically positioned, dual mast
ice-class drillship. The Stena IceMAX is a Harsh Environment DP Class 3
drillship capable of drilling in water depths up to 10,000ft. The IceMAX
has on-board 2 x BOP's, each 18 3/4" x 15,000psi Cameron "TL" BOP c/w ST
Locks, and uses Cameron Load King riser. The vessel was delivered in
April 2012.
ABOUT FEL 2/14 - DRUID & DROMEG
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, Providence and Sosina entered into a Strategic
Exploration Collaboration Project with Schlumberger.
In April 2016, the main results of this Project were announced:
DRUID (PALEOCENE)
-- 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
--Geomechanical analysis using regional well and high resolution seismic
velocity data indicates that Druid is normally pressured and the top
seal is intact
DROMBEG PROSPECT (LOWER CRETACEOUS)
--Located c. 2,750 m BML and structurally up-dip from a potential
significant fluid escape feature from the underlying pre-Cretaceous
Diablo Ridge
--In-place un-risked prospective resource of 1.915 BBO (PMean)
-- Pre-stack seismic inversion and regional rock physics analysis shows
Drombeg is consistent with a highly porous (20%), light oil-filled
sandstone reservoir system up to 45 metres thick
--A depth conformant Class II AVO anomaly is present and spectral
decomposition is reflective of a large sand-rich submarine fan system
with no significant internal faulting, and supports an up-dip trap
mechanism
--Geomechanical analysis using regional well and high resolution seismic
velocity data indicates that Drombeg is over-pressured with an intact
top seal
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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