Dublin and London – February 1, 2019 – Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company (“Providence” or the “Company”), today provides an operational update on Standard Exploration Licence (“SEL”) 1/11 that contains the Barryroe oil accumulation. The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland. SEL 1/11 is operated by EXOLA DAC (“EXOLA”, 40%), a wholly-owned Providence subsidiary, on behalf of its partners, APEC Energy Enterprises Limited (“APEC”, 50%) and Lansdowne Celtic Sea Limited (“Lansdowne”, 10%), collectively referred to as the “Barryroe Partners”.
In September 2018, EXOLA and Lansdowne signed an Updated Farm-out Agreement (“FOA”) with APEC which provides for a fully cost-carried firm programme comprising of the drilling and testing of four vertical wells and one horizontal side-track (collectively the “Drilling Programme”), plus the optional drilling of two additional horizontal wells (the “Option Wells”). Under the terms of the FOA, China Oilfield Services Limited (“COSL”) will provide all services and equipment required to conduct the Drilling Programme.
To effect this Drilling Programme, the Barryroe Partners can now confirm that COSL have nominated their 6th generation “COSLinnovator” semi-submersible drilling unit, which is currently based in the Norwegian North Sea. The first well in the program, subject to regulatory consent, is planned to be c. 4.3 km west and c. 25 m structurally high at Base Wealden level to the previous 48/24-10z well which tested c. 4,000 BOEPD from a vertical 7-metre reservoir section at this level. This well is then planned to be sidetracked to drill and test a prognosed c. 200 metre Base Wealden section. Well-site survey operations are planned to commence during Q2 2019, subject to regulatory consents.
Commenting on the announcement, Tony O’Reilly, Chief Executive of Providence said:
“The rig nomination allows us to progress the rig-related consents for the upcoming Barryroe appraisal drilling programme. Subject to the receipt of all necessary regulatory approvals, we currently envisage rig mobilisation and drilling commencing during Q3 2019. The Barryroe partners look forward to working closely with COSL on the execution of this major drilling programme and further project announcements will be made as appropriate.”