Irish based oil and gas exploration company Providence Resources plc revealed Tuesday that the Newgrange prospect, located in the Goban Spur Basin, could hold un-risked prospective resources of 13.6 trillion cubic feet of gas.
The revised volumetric estimation, which is part of a joint exploration collaboration project with Schlumberger, incorporated recently acquired 2D long offset seismic reflection profile data. Newgrange is principally located in Frontier Exploration Licence (‘FEL’) 6/14, which lies in 3,280 feet of water depth, and is 167 miles off the south west coast of Ireland. Providence (80%) operates FEL 6/14 on behalf of its partner Sosina Exploration Limited (20%).
With operations currently being planned for the Druid exploration well in 2017, an internal scoping assessment of the incremental costs for an additional well on the Newgrange prospect was subsequently carried out. The study indicates that such a well would cost around $22.5 million (gross).
“These recently completed studies bring the material hydrocarbon resource potential at Newgrange into sharp focus,” said John O’Sullivan, technical director of Providence, in a company statement.
“Whilst exploration risk remains, the shallow depth of Newgrange below the seabed makes for a potentially compelling investment case in terms of the risk/reward metrics,” he added.
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