Repsol Becomes Operator of Newgrange Prospect, Offshore Ireland

Providence Resources P.l.c., the Irish oil and gas exploration and production company, whose shares are quoted in London (AIM) and Dublin (ESM), provides an update on Licensing Option 11/11 (‘Option’).

This licensing authorization is located c. 250 km off the south-west coast of Ireland in c. 1,000 metre water depth. The Option was awarded to Providence (40%), Repsol (40%) and Sosina (20%) as part of the 2011 Irish Atlantic Margin Licensing Round in October 2011.

The partners recently agreed for Repsol Exploracion Irlanda, S.A., a subsidiary of Repsol, to assume the role of Operator for the Option. This change of operatorship is in recognition of Repsol’s extensive deepwater drilling expertise together with its recent significant successes in carbonate exploration elsewhere in the Atlantic Basins. The transfer of operatorship has been approved by the Irish government.

Speaking today, Tony O’Reilly, CEO of Providence said,

 “We are pleased to confirm that Repsol have taken over the role of Operator for this significant exploration opportunity. The Newgrange partners are already co-venturing on the nearby and potentially analogous Dunquin exploration prospect which was recently confirmed for drilling in Q2 2013. The partners look forward to leveraging on Repsol’s range of resources and capabilities in order to advance Newgrange to drill ready status.”

The Newgrange prospect is located in Licensing Option 11/11 in the Goban Spur, offshore south-west Ireland. The prospect comprises a large four way dip closed anticline which extends over a c. 1,000 sq kilometer area. Nearby well control   suggests the potential for excellent carbonate reservoir development with the most recent volumetric analysis indicating a mean gas in place prospective resource potential of 14 TSCF.

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Source: Providence Resources, March 22, 2012