Providence to Begin 2D Seismic Project at Newgrange

Providence Resources P.l.c., the Irish oil and gas exploration and development company, provided an update on Licensing Option 11/11 (Newgrange).

Providence Resources (80%, Operator) and Sosina Exploration (20%) were awarded Newgrange as part of the 2011 Irish Atlantic Margin Licensing Round. The Newgrange area lies in c. 1,000 metre water depth in the Goban Spur Basin and is c. 260 km off the south west coast of Ireland.

Having made the mandatory 25% areal relinquishment, the Newgrange partners have been offered a follow-on Frontier Exploration Licence (FEL) 6/14 by the Minister of State at the Department of Communications, Energy and Natural Resources. The principal element of the forward work programme is the acquisition of a 1,000 km 2D seismic survey over the area and survey planning has already commenced.

Subsurface studies carried out during the licence option period highlighted clastic and carbonate exploration prospectivity within the Jurassic and Cretaceous intervals respectively. Seismic interpretation of 2D reflection profile data have revealed the presence of two large stacked four-way structural closures at both Base Cenozoic (Top Cretaceous) and Base Cretaceous levels covering a c. 1000 km2 area. The previously drilled 62/7-1, which is located c. 30 km from the Newgrange prospect and was drilled down-structure, encountered hydrocarbon shows in sands of Lower Jurassic age.

John O’Sullivan, Technical Director of Providence, said: “Previous drilling has highlighted the prospectivity within the Jurassic and Cretaceous intervals of the Porcupine Basin, with much current industry focus on these Mesozoic play systems. The recent Dunquin North exploration well has proven that oil has been generated in the adjacent southern Porcupine Basin which flanks the Goban Spur and that Cretaceous carbonates can provide high porosity massive reservoir systems. The new 2D seismic programme is being designed to de-risk the Newgrange prospect at both prospective levels and should provide the critical data in order to advance this material prospect towards drilling.”