Providence Wins 4 New Licenses in 2011 Irish Atlantic Margin Round

Providence has been awarded licensing options over four new offshore areas as part of the 2011 Irish Atlantic Margin Licensing Round. The announcement of the Licensing Round results was made this morning by the Minister for Communications, Energy and Natural Resources, Mr. Pat Rabbitte, TD at the Atlantic Ireland Conference in Dublin.

These Licensing Options have a two year term after which they may be converted into Frontier Exploration Licenses, which have a 12 year term, divided into four three year phases, with a well commitment required at the end of the first phase. Providence will operate the licensing options in all four areas which cover c. 5,000 sq km and range in water depth from c. 400m to 3,000m. Providence's partners in the new acreage include both existing co-venturers, such as Chrysaor and Sosina, as well as new entrants, such as Repsol and FirstOil.

Licensing Option Number Area Name Basin Number of Blocks Partners (Equity %)
11/11 Newgrange Goban Spur 8

Providence (40%); Repsol (40%); Sosina (20%)

11/9 Drombeg South Porcupine 6

Providence (80%); Sosina (20%)

11/12 Kylemore Slyne Trough 2

Providence (66.6%); First Oil (33.3%)

11/2 Spanish Point South Main Porcupine 6

Providence (32%); Chrysaor (58 %); Sosina (10%)

Speaking today, Tony O'Reilly CEO of Providence said, "Providence is delighted to have been awarded such a significant acreage position on the Irish Atlantic Margin as part of the 2011 Round. Our studies completed to date indicate a number of structures with significant potential which will greatly augment our already formidable acreage position offshore Ireland. Providence now holds license interests in 8 distinct basins offshore Ireland, including our first license in the Slyne Trough offsetting the Corrib gas field as well as additional acreage adjacent to our Spanish Point gas condensate discovery. I am also particularly pleased to welcome Repsol and FirstOil into Ireland as new co-venture partners as well as continuing our very positive working relationship with Chrysaor and Sosina."