Providence Commences Drilling Ops at UK Singleton Field

Providence has commenced drilling operations as part of its 2010 drilling program (as previously announced in June 2010) at the Singleton oil field, onshore UK. The Singleton field is located in the Weald Basin and currently produces c. 800 BOEPD from seven production wells. The field is operated by Providence (99.125%) with partner Noble Energy (0.8725%).

The drilling program comprises the sidetracking of the X9 well to a new and more optimal location together with the addition of two new lateral sections to the currently producing X8x well, potentially providing c. 350 BOEPD of additional cumulative production. In addition, the new X9 sidetrack well has been designed for future acid fracture stimulation, thereby providing further incremental production potential. Providence is utilizing the BDF-28 drilling rig with operations expected to last some 6 weeks.

Tony O'Reilly, Chief Executive of Providence, said, "Following our highly successful drilling program in 2009, these wells are again aimed at materially increasing production rates as well as evaluating the potential of fracture stimulation and multi-lateral well technology. This program should not only boost daily production rates by over 40%, but should also allow us to assess the impact of new production technologies at Singleton which are expected to form the cornerstone of our field redevelopment activities during the coming years."