Providence Preps for Multi-Well Campaign Offshore Ireland

Providence provided an operational update on its activities across its two frontier exploration licences (FEL 2/04 & FEL 4/08) in the Main Porcupine Basin, c. 200 km off the west coast of Ireland. These licenses are operated by Providence (56%) with partners Chrysaor E&P Ireland (30%) and Sosina Exploration (14%).

Spanish Point well commitment

Providence, on behalf of its partners, Chrysaor and Sosina has formally notified the Irish Department of the Communications, Energy and Natural Resources that they have elected to enter the second phase of FEL 2/04, which contains the Spanish Point gas condensate and Burren oil discoveries. This second phase carries a firm well commitment and will form part of Providence's previously announced multi-year, multi-basin drilling program offshore Ireland.

New 3D seismic survey to be acquired over FEL 4/08

The subsurface evaluation of FEL 4/08 carried out to date has been based on 2D seismic data together with the integration of the mapping into the overall Spanish Point regional model. This work has revealed the presence of a number of new prospective features. Accordingly, the partners have agreed to acquire a new c. 200 sq km 3D survey over FEL 4/08 and integrate these data with the recent 2009 Spanish Point 3D survey. It is planned that this survey will be acquired during the summer 2011.

New independent CPR completed for FEL 2/04 and FEL 4/08

Senergy has carried out a competent persons report (CPR) on the resource potential of FEL 2/04 and FEL 4/08. This study has independently assessed gross un-risked recoverable prospective resources of up to c. 750 MMBOE. This resource potential covers a number of prospects including "Wilde", the newly identified "Cama" prospect as well as the "Burren" oil discovery (up to c. 66 MMBO REC). The CPR also evaluated the contingent resource potential at "Spanish Point" and has attributed gross contingent resources that are in line with the previously reported volumes of up to c. 200 MMBOE REC.

Commenting, John O'Sullivan, Technical Director of Providence said, "Following the hugely positive impact that 3D seismic has had on our understanding of the Spanish Point discovery, the partners have now taken the decision to move into the second phase of the license by providing a well commitment. Our mapping and the associated CPR have highlighted additional resource potential around Spanish Point, both in known discoveries such as Burren, as well as in the newly identified exploration targets in FEL 2/04 and FEL 4/08. We believe that the deployment of 3D seismic technology will again add similar value to our adjacent FEL 4/08 area and help to advance it to a drill ready stage."