Providence Resources has provided an update on several positive developments within its portfolio of producing oil and gas interests in the Gulf of Mexico. These developments will not only reinstate lost production, but will also lead to a meaningful increase in daily production rates, with production rising by an estimated 900 BOEPD net to Providence by mid Q3, 2009. The Company is also reviewing a number of new drilling opportunities in the region, which could see the Company taking advantage later in the year of the recent reduction in rig rates.
Re-instating Production Impacted by Hurricanes
As previously announced, last September's Hurricanes Gustav and Ike seriously impacted production in the area, including Providence's
Installation of the production platform at Galveston A-155 was performed in January 2009 and the wellbore completion was carried out
At Ship Shoal 253, all major remedial works on the topsides production facilities and platforms have now been effectively completed with some remaining subsea pipeline work still to be finalized. Repairs to third party export pipelines have taken longer than planned and it is therefore expected that production will re-commence in mid Q3 at a rate of 250 BOEPD net to Providence.
At High Island A-268, production re-commenced in Q1 following the re-instatement of the main third party gas export line that was damaged. Plans are now being finalised to hook-up the HI A-268 wells (currently producing c. 30 BOEPD) to a compressor during Q2 to
Enhancing Production Rates & Evaluating Drilling Opportunities
At Vermillion 60, a significant recompletion program has been agreed for Q2 to produce from a new zone that should see Providence's net
At Main Pass 19, a work-over was performed on a well in the field during Q1 to allow the well to produce at higher oil rates. The result was that gross oil production from this well increased from a production rate of c. 5 BOPD to an initial stabilised rate of c. 140 BOPD.
In addition to work programmes at its existing producing assets, the Company has a number of drilling opportunities which are currently
Speaking today, Tony O'Reilly, Chief Executive of Providence, said, "Over the past two years, we have built up a sizeable portfolio of
"Looking further ahead, Providence will continue to optimise its asset portfolio as well as looking at new opportunities in the region. On the drilling front, the Company is reviewing its extensive list of opportunities in light of the significant reduction in rig rates over the recent months."
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