Providence Resources plc : Technical Update - Rathlin Basin
19 September 2012
Providence Resources P.l.c., ("Providence") the Irish oil and gas exploration and production company, whose shares are quoted in London (AIM) and Dublin (ESM), is pleased to provide the first technical update on its Rathlin Basin acreage, which is located both onshore and offshore Northern Ireland. Providence holds a 100% interest over six offshore blocks (P1885), which were awarded under the UK's 26th Seaward Licensing Round in 2011. In addition, an onshore licence (PL5/10), covering the island of Rathlin, was awarded to Providence in February 2011 by the Northern Irish Department of Enterprise, Trade and Investment.
Since licensing the acreage, Providence's subsurface team has been actively engaged in the evaluation of existing 2D seismic, shallow and deep well bore and outcrop geological data. Providence has identified conventional hydrocarbon prospectivity within the Lower Triassic Sherwood Sandstone Group reservoir interval, which is proven to exist in the basin and which is a prolific hydrocarbon productive reservoir in the nearby East Irish Sea Basin, offshore Liverpool. Further vertically stacked potential has been identified within the deeper Carboniferous section where sandstones with porosities of up to 29% have been recorded in onshore outcrops. To date, just one deep hydrocarbon exploration well has been drilled in the basin, the onshore Ballinlea-1, which was drilled by Rathlin Energy Limited who reported that samples of good quality oil were brought to the surface for analysis.
Providence has acquired a recently completed Full Tensor Gradiometry (FTG) and magnetic airborne survey carried out over its blocks by Bell Geospace. The drilling of anomalies identified using this technology has been proven to be extremely successful elsewhere in the world in frontier hydrocarbon exploration. The initial evaluation of these data has identified five large anomalies within Providence's acreage. Notably, one of these anomalies is structurally on-trend and just c.10 km from the Ballinlea-1 well. It is now planned to integrate the FTG dataset with existing 2D seismic data and the onshore stratigraphy to high-grade the prospectivity of these anomalies. Further reprocessing of the existing 2D seismic data is also planned in order to progress the area towards drilling. A screening review of potential drilling locations has commenced with options to drill from both offshore as well as onshore sites currently being assessed. Providence plans to continue its statutory as well as local stakeholder liaison as an integral part of this review - in particular in relation to any planned drilling activity.
Speaking today, John O'Sullivan, Technical Director of Providence said:
"Whilst the Rathlin Basin is a frontier exploration arena, it is encouraging that the only deep hydrocarbon well drilled to date has recovered oil and proven the presence of an active and oil prone source rock. These newly acquired FTG data have highlighted areas of real prospectivity, a number of which had previously been determined from our evaluation of the existing 2D seismic data. The presence of a number of anomalies within our acreage is also very encouraging from a follow-on play potential perspective given the success this FTG technology has enjoyed in opening up new frontier basins elsewhere in the world. We have now started to integrate these results within our current basin model as we look to firm up an appropriate location for exploration drilling."
|Providence Resources Plc |
John O'Sullivan, Technical Director
|Tel: +353 1 219 4074|
Lisa Kavanagh / Rob Greening
|Tel: +44 207 250 1446|
|Murray Consultants |
Pauline McAlester / Pauline Dooley
|Tel: +353 1 498 0300|
|Cenkos Securities Plc |
Adrian Hargrave / Nick Wells
|Tel: +44 207 397 8900|
|J&E Davy |
|Tel: + 353 1 679 6363|
Simon Atkinson / Clayton Bush
|Tel: +44 203 100 2000|
Providence Resources Plc is an Irish based oil and gas exploration company with a portfolio of production, appraisal and exploration assets in Ireland (offshore) and the United Kingdom (onshore & offshore). In 2011, Providence, along with its partners, commenced a circa $500 million multi-year drilling programme on a number of exploration and development wells in 6 different basins offshore Ireland. This programme represents the largest drilling campaign ever carried out offshore Ireland. www.providenceresources.com.
This announcement has been reviewed by John O'Sullivan, Technical Director, Providence Resources P.l.c. John holds a B.Sc. in Geology from University College Cork, Ireland, an M.Sc. in Applied Geophysics from the National University of Ireland, Galway and a M.Sc.in Technology Management from The Smurfit School of Business at University College Dublin. John is presently working part-time on a PhD dissertation at Trinity College, Dublin. John has worked in the offshore business for 20 years and is a fellow of the Geological Society of London and member of The Petroleum Exploration Society of Great Britain. 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
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Source: Providence Resources plc via Thomson Reuters ONE