Providence Awards Spanish Point 3D Seismic Survey

Providence Resources P.l.c., the London (AIM) and Dublin (IEX) listed oil and gas exploration and development company, is pleased to announce that it has awarded the Spanish Point 3D seismic survey acquisition contract to Bergen Oilfield Services AS. This 3D seismic survey programme, which is expected to commence in Q2/3 2009, will cover a c.300 square kilometre area primarily over the Jurassic Spanish Point gas condensate discovery. The survey will be acquired using the recently refitted BOS Angler 3D seismic survey vessel.

Providence (56%) operates the Spanish Point licence (FEL 2/04) on behalf of its partners Chrysaor E&P Ireland (30%) and Sosina Exploration (14%). The budgeted costs of this survey will be borne 100 percent by Chrysaor as part of the farm-out agreement announced on 12 August 2008.

The original 35/8-2 Spanish Point discovery well flowed c.1,000 BOPD and c. 5 MMSCFGPD from one of four logged hydrocarbon bearing intervals. Third party modeling of these well data has suggested that an optimally placed and stimulated development well could flow at significantly higher rates from all hydrocarbon bearing intervals. The partners consider that the acquisition of a 3D seismic survey over Spanish Point is vital in order to further enhance the detailed understanding of the reservoir, as well as to optimise potential future well placement. The survey has also been designed to accommodate future time-lapse 3D seismic surveying, which has been demonstrated to be particularly effective in monitoring fluid movement during field production.

Speaking today, Tony O’Reilly, Chief Executive of Providence, said:
“We are pleased to advise shareholders of material progress on our Spanish Point Project with the awarding of this major 3D seismic survey contract. Our third party studies to date have indicated that the Spanish Point accumulation may constitute a significant commercial discovery, containing median contingent recoverable resources of c.1.4 TSCF and c.160 MMBO. Looking ahead, we believe that well stimulation technology may be the key to commercialising Spanish Point. This 3D survey will help to optimise the best future well locations and the most effective appraisal and production test programme to undertake.”