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Providence Resources extends Barryroe licence; adds Newgrange seismic to survey

Published: 02:57 07 Aug 2014 EDT

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Providence Resources (LON:PVR) has announced a number of adjustments to its licence for Barryroe, as it continues its ongoing farm-out talks for the major Irish oil field development.

The term of the current exploration phase of the licence and an option over adjacent acreage has been extended by a year, to July 2015.

And the operatorship of the licence has been transferred to Exola Limited, a wholly owned subsidiary of Providence.

“The change in operatorship has been done to facilitate ongoing commercial discussions in relation to the next phase of operations on the Barryroe Field,” chief executive Tony O’Reilly said.

Providence owns 80% of the Barryroe project, alongside partner Lansdowne Oil & Gas (LON:LOGP) which has the other 20%, while San Leon Energy (LON:SLE) (formerly a partner) retains a net production interest of 4.5%.

Separately, Providence this morning revealed exploration plans for the Newgrange prospect, off Ireland’s south west coast, where a newly contracted seismic programme will get underway later this month.

The 2D survey will cover 2,500 kilometres, and will be carried out by Polarcus and Seabird Exploration.

It is designed to enhance subsurface imaging and it will help advance the prospect towards the drilling of an exploration well, Providence said.

The seismic programme will be tied-into an ongoing 3D seismic programme in Providence’s Drombeg area, where the company added that 3,000 square kilometres have already been acquired.

John O’Sullivan, Providence’s technical director, said: "This is the second seismic programme that Providence has underwritten offshore Ireland in 2014 and builds on the 3D surveying that is currently ongoing over our Drombeg prospect.  

“These new surveys, in tandem with our participation in the Dunquin North exploration well, demonstrate our commitment to the future exploration of the frontier southern Porcupine Basin where an oil-charged Cretaceous-aged carbonate petroleum system was recently confirmed by drilling.

“Our primary Cretaceous-aged carbonate reservoir interval at Newgrange demonstrates closure of up to c. 300 metres over a c. 1,200 km2 area. 

“Very few undrilled structures of this magnitude remain along the NW European Atlantic Margin. These new seismic data should not only provide further clarity and definition as to the resource potential within the vast Newgrange structure, but should allow for future exploration well planning.”

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