Providence Ramps Up Production in GOM

Providence provided an update on recent developments within its portfolio of producing oil and gas interests in the US Gulf of Mexico. These developments include the re-instatement of oil production from its Ship Shoal 253 field, following completion of hurricane-related repairs to the production facility. The Company also confirmed that a well recompletion program for 2010 has been agreed on a number of producing assets which is designed to boost daily production rates. Providence also continues to review a number of drilling opportunities across the region. 

Ship Shoal 253 Production Re-instated

Hurricanes Gustav and Ike seriously impacted oil and gas production in the US Gulf of Mexico in August 2008, with production from Providence's Ship Shoal 253 field being shut in since that time. Repairs to the oil export pipelines from Ship Shoal 253 have taken significantly longer to complete than was originally expected. These repairs are now complete and production has recently re-commenced. Providence's net production from Ship Shoal 253 was c. 250 BOEPD prior to the shut-in. 

Well Recompletion Program

A 2010 well recompletion program has been confirmed for the High Island A-268 and Main Pass 19 fields. At High Island A-268, logged gas bearing zones in each of the two wells on the field are planned to be brought into production in late Q2/early Q3 which should enhance the production from this field. In addition, on Main Pass 19, a well recompletion program has been agreed with the operator on two of the production wells which should again enhance gas rates by accessing a previously undeveloped gas bearing zone. Providence is continuing to work with the operator to finalize further incremental recompletion opportunities in this field. 

Evaluation of potential development drilling opportunities

Providence continues to evaluate potential development drilling opportunities within the Company's US asset portfolio, and is currently working to advance the drilling of a further opportunity pending partner agreement and rig availability/rates. 

Speaking today, Tony O'Reilly, Chief Executive of Providence, said, "I am pleased to announce that oil production has re-commenced on Ship Shoal 253. This is a welcome boost to oil production at a time when oil prices are trading in the $65 to $70/bbl price range. Providence continues to optimize its asset portfolio through recompletes of existing wellbores, as well as looking at new opportunities in the region."