PVR Providence Resources Plc

 
TIDMPVR 
 
 
   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
   OPERATIONAL UPDATE 
 
   FRONTIER EXPLORATION LICENCE 6/14 
 
   NEWGRANGE, GOBAN SPUR BASIN 
 
 
   -- SEABED SAMPLE GEOCHEMICAL ANALYSES SUPPORT HYDROCARBON SOURCING 
 
   -- BURIED POCKMARKS DEMONSTRATE PROLONGED HYDROCARBON MIGRATION 
 
   -- FARM-OUT DISCUSSIONS CONTINUING WITH POSSIBLE NEAR-TERM DRILLING 
 
 
 
   Dublin and London - October 15, 2018 - Providence Resources P.l.c. (PVR 
LN, PRP ID), the Irish based Oil & Gas Exploration Company, today 
provides an update on Frontier Exploration Licence ("FEL") 6/14 that 
contains the Newgrange Prospect.  FEL 6/14 is operated by Providence 
Resources P.l.c., on behalf of its partner Sosina Exploration Limited 
(20%), collectively referred to as the Newgrange Partners, and is 
situated in c. 1,000 m water depth being c. 260 km off the south-west 
coast of Ireland. 
 
   Initial Evaluation 
 
   In July 2018, the Company announced that the Newgrange Partners had 
successfully completed a site survey which comprised the acquisition of 
data suitable for input to an application for the permitting of a 
Newgrange exploration well using Gardline's M/V Kommandor vessel.  The 
initial analysis of the seabed data over the proposed Newgrange well 
location confirmed the presence of more than 100 seabed pockmark 
features, which was interpreted by the Newgrange Partners to be the 
result of fluid seepage from the underlying geology. As part of the data 
acquisition programme, the Company acquired seabed samples which have 
now been independently analysed for hydrocarbon presence. 
 
   Updated Evaluation 
 
   Third party detailed evaluation of these data has now confirmed the 
presence of 262 present-day seabed pockmarks. Geochemical analysis of 
seabed samples acquired during this programme has confirmed the presence 
of both biogenic and thermogenic hydrocarbon sourcing signatures 
indicating the pockmarks are possibly related to hydrocarbon migration. 
In addition, high resolution sub-bottom 2D data have revealed buried 
pockmark fields up to c. 100 metres beneath the seabed possibly 
indicating active hydrocarbon migration over a prolonged period. 
 
   Forward Operations 
 
   Discussions with potential third party farminees are continuing and 
depending on the outcome of these discussions, drilling could take place 
in either 2019 or 2020 (subject to regulatory consent). The latest 
internal well cost estimate is less than $15 million, exclusive of 
mobilisation. 
 
   Commenting today, Dr John O'Sullivan, Technical Director of Providence 
Resources said: 
 
   "The quantum of current seabed pockmarks, together with the positive 
geochemical analyses, support the presence of potential active source 
rocks in the area that could be charging Newgrange with either liquids 
or gas.  In addition, the presence and extent of the buried pockmark 
fields attest to the longevity of these potential sourcing systems, 
confirming that they are not just a present-day phenomenon.  Whilst 
Newgrange is frontier in nature, the material prospective resources and 
low drilling cost continues to attract industry interest and we believe 
that these new technical data should serve to further bolster that 
enthusiasm." 
 
 
 
 
INVESTOR ENQUIRIES 
Providence Resources P.l.c.              Tel: +353 1 219 4074 
Tony O'Reilly, Chief Executive Officer 
Dr. 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 
 
Mirabaud Securities Limited              Tel: + 44 20 3167 7221 
Peter Krens 
 
MEDIA ENQUIRIES 
Powerscourt                              Tel: +44 207 250 1446 
Peter Ogden 
 
Murray Consultants                       Tel: +353 1 498 0300 
Pauline McAlester 
 
   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. 
 
   ABOUT PROVIDENCE RESOURCES 
 
   Providence Resources is an Irish based Oil & Gas Exploration Company 
with a portfolio of appraisal and exploration assets located offshore 
Ireland.  Providence's shares are quoted on the AIM in London and the 
ESM in Dublin. Further information on Providence can be found on 
www.providenceresources.com 
 
   ABOUT NEWGRANGE 
 
   The Cretaceous Newgrange carbonate prospect is located in c. 1,000 metre 
water depth and is situated in the Goban Spur Basin. The prospect is a 
four-way dip closure which covers c. 1,000 square kilometres with c. 300 
metres of vertical relief.  The crest of the prospect lies just c. 500 
metres BML and therefore top-seal capacity was a major focus of the 
prospect risk mitigation process. A seal capacity analysis, which 
utilized offset well data, seismic velocity data and surface mapping has 
however indicated that the present-day top seal could potentially 
contain up to a c. 350 metre hydrocarbon column. This seal capacity 
analysis was used in the latest volumetric estimate. 
 
   A revised volumetric estimation was carried out for the Newgrange 
prospect incorporating the recently acquired (2014) 2D long offset 
seismic reflection profile data as part of the Exploration Collaboration 
Project with Schlumberger. This work significantly increased the 
un-risked prospective resource potential to c. 13.6 TSCF GIIP (Pmean, 
Gas Case) or c. 9.2 BBO STOIIP (Pmean, Oil Case).   Oil and gas cases 
were modelled due to the uncertainty in the hydrocarbon phase which may 
be applicable in this area. 
 
   This announcement is distributed by West Corporation on behalf of West 
Corporation 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/ 
 

(END) Dow Jones Newswires

October 15, 2018 02:00 ET (06:00 GMT)

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