Providence Ups Oil In-Place Resource Estimate by 50% at Singleton Field

Providence Resources has provided an update on activities at its Singleton Field in the Weald Basin, onshore United Kingdom.

Providence recently commissioned a number of studies as part of the planned redevelopment for enhanced production of the Singleton Field which included static deterministic resource modelling carried out by RPS Energy. The main aim of this modelling was to understand the detailed distribution of oil within the field and to highlight any areas which may be currently bypassed by the existing wells. The preliminary results of the study, which suggest an original oil in-place resource of up to c. 107 MMBO, a 50% increase over previous estimates, are presently being incorporated and tested in a new dynamic simulation model of the field.
Current production is c. 500 BOPD and c. 1.2 MSCFGD (c. 700 BOEPD) from six wells. Since production commenced in 1986, the field has produced c. 3.7 MMBO, which represents a recovery factor to date of c. 3.5%. Published data from similar fields in the area suggest an ultimate recovery factor of up to c. 10% should be achievable which means there is up to c. 7 MMBO of potential remaining reserves. The first stage of the redevelopment of the Singleton Field is due to commence in Quarter 1 2009 with the drilling of the SNX-SWD
horizontal development well, which is targeting one of a number of areas highlighted in the recent modelling. In addition, several well stimulation programs are planned for the existing wells together with facilities upgrades.
The total increase in production from these initial redevelopment activities is estimated to be c. 300 BOEPD taking total field production to c. 1,000 BOEPD.
Providence holds a 99.125% interest in the Singleton Field, with Noble Energy holding the remaining 0.875%.
Tony O'Reilly, Chief Executive of Providence, said, "The initial results of this new resource modelling study have given further impetus to our planned redevelopment program for the Singleton Field as they have significantly increased the original in-place resource estimate thereby boosting the remaining reserve potential. The commencement of drilling of the SNX-SWD development well will be the next milestone in the field redevelopment process and this, together with the planned stimulation program and facilities upgrades should allow us to further increase the field's reserves. I look forward to updating you on these activities in the
* Only a small proportion of the produced gas is used for operations,
with the remaining portion currently being flared. The Company is in

the process of finalising plans to monetize this flared gas.