Seismic to Begin in July for Celtic Sea Prospect

Providence Resources Plc

A 2-D seismic program is set to begin next month on the Dunquin gas condensate prospect in the Celtic Sea offshore Ireland, Providence Resources reported Tuesday at its annual meeting in Dublin.

The company said that it has finialized its 2006 work program on Dunquin with ExxonMobil under the terms of its farmout agreement. Providence is the operator with 16 percent interest. ExxonMobil holds 80 percent in the prospect, located in the Porcupine Basin 200 miles off the West Coast of Ireland. Sosina owns the remaining 4 percent.

In addition to the progress with Dunquin, shareholders also received the following updates regarding Providence's oil and gas portfolio:

  • An extensive study has now been completed on the development options for the Spanish Point gas condensate discovery in the Porcupine Basin. The company opened a data room in May to accommodate ongoing commercial and farmout discussions.

  • A consortium that includes Providence has applied for acreage under the U.K. 24th Seaward Licensing Round.

  • In the St. George's Channel License Area of the Celtic Sea, Gardline Surveys Limited has been given a letter of intent to carry out 2-D seismic surveys over the Ardmore, Hook Head, Pegasus, and Blackrock targets.

  • The current average daily production from the Singleton onshore field in southern England has increased by 55 percent to 670 BOPD and 690 MSCF gas/day.

  • Providence is currently reviewing a number of production and acquisition opportunities around the world.

Brian Hillery, Providence's chairman, told shareholders: “I am pleased with the substantial progress that the company has made over the last 12 months, which saw the delivery by our management team of a number of our key strategic initiatives, including: the successful farmout of the Dunquin Prospect to ExxonMobil and subsequent agreement of a 2006 work programme; the securing of a €50 million financing facility with Macquarie; and the completion of a major study on Spanish Point and opening of a data room highlighting the development options for this significant gas condensate field."

Providence Resources Plc is an independent oil and gas exploration company listed on the AIM market in London and on Dublin’s IEX market. The company's active oil and gas portfolio includes interests in Ireland (offshore), the U.K. (onshore and offshore), and West Africa (offshore Nigeria). Providence’s portfolio is balanced between production, appraisal and exploration assets, as well as being diversified geographically.