Providence Resources prepares to drill the Paleocene Druid prospect in FEL 2/14

On Jan 23, 2017

FEL 2/14 progressed to the second phase of the licence
Primary work programme activity is the drilling of the Druid prospect
Planned spud date for the Druid well is June 2017

Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil and Gas Exploration Company, provides an update on the Frontier Exploration Licence (”FEL”) 2/14, which lies in c. 2,250 metre water depth in the southern Porcupine Basin and is located c. 220 kilometres off the south west coast of Ireland. The licence is operated by Providence Resources P.l.c. (“Providence”, 80%) on behalf of its partner Sosina Exploration Limited (“Sosina”, 20%), who are collectively referred to the “JV Partners”.

FEL 2/14 contains the Paleocene “Druid” and the Lower Cretaceous “Drombeg” exploration prospects.

LICENCE UPDATE

The Minister of State for the Department of Communications, Climate Action and Environment has given his consent to the progression to the second phase of the licence, subject to the completion of the agreed work programme which includes the drilling of the 53/6-A exploration well on the Paleocene Druid prospect and the subsequent integration of the well data into a comprehensive assessment of the petroleum potential of
the licence.

OPERATIONAL UPDATE

In November 2016, the Company signed a drilling contract for the provision of the Stena IceMAX drill-ship to drill an exploration well in FEL 2/14 during 2017. The drilling contract provides for one firm well, plus an
additional option, which is electable at the discretion of the JV Partners for the drilling of a second follow -on well. Other key service contracts are now being finalized for the drilling operations for the planned 53/6-A exploration well. Based on the latest project timeline and, subject to standard regulatory approvals and consents, the 53/6-A exploration well is currently planned to spud in June 2017.

Speaking today, Tony O’Reilly, Chief Executive of Providence said:

“We are pleased to have received this confirmation from the government on the licence progression as we continue to move forward with all the necessary works to enable the drilling of this high impact exploration well during summer 2017.”