Ireland: Providence Awakens Spanish Point Sleeping Giant

Providence Resources P.l.c. („Providence‟), the AIM and ESM listed exploration and production company, is pleased to provide a status update on its Spanish Point Project, which is located in Frontier Exploration Licence (FEL) 2/04 in the Main Porcupine Basin, offshore western Ireland.

The Spanish Point discovery, which was originally made by Phillips Petroleum in 1981, is located in c. 400 metre water depth and is c. 170 km off the west coast of Ireland. Providence operates FEL 2/04 (56%) with partners Chrysaor E&P Ireland Limited (30%) and Sosina Exploration Limited (14%).

The Spanish Point partners have recently completed interpretation of the 3D seismic data acquired in 2009 and incorporated this into a comprehensive technical assessment of the discovery. Additional analysis has been undertaken on core obtained from the original discovery well but only available to the partnership in 2009. The results from new core-based goniometric, capillary pressure and rock mechanics studies together with hydraulic fracture modelling and new fluid compositional modelling have also been fed into the assessment. The programme was carried out by Chrysaor on behalf of the partnership and included structural, static & dynamic modelling, integrated probabilistic modelling, development concept evaluation and economics. On the basis of this work, the partnership has concluded that successful appraisal of the Spanish Point discovery will likely result in a commercial development.

The partners have focused on two volumetric scenarios which indicate an in place resource which ranges from c. 200-510 MMBOE with c. 100-200 MMBOE recoverable respectively. Field development would require between 6 and 14 horizontal fracture stimulated production wells depending on the final resource base. Most likely peak field production in all volumetric cases would be c. 250 MMSCFD & 30,000 BOPD (72,000 BOEPD).

Tony O‟Reilly, Chief Executive of Providence said today,

“The completion of this technical work finally awakens the sleeping giant that is Spanish Point. This is not only a significant event for Providence and its partners, but for the whole Irish offshore. The last two years work has significantly de-risked Spanish Point and as such, it gives us every confidence in the successful future appraisal and development of this tested discovery.

We have already identified the primary appraisal well location and have commenced well planning with a view to drilling in 2012.”

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Source: Providence Resources, November 16, 2010: