Providence Resources P.l.c., the Irish oil and gas exploration and appraisal company, whose shares are listed in London (AIM) and Dublin (IEX), is pleased to provide an update on its 100% owned and operated licences P1885 and PL 5/10 in the Rathlin Basin, offshore Northern Ireland.

In 2012, Providence acquired a Full Tensor Gradiometry (FTG) and magnetic airborne survey over its acreage, which was carried out by Bell Geospace. Initial processing of these data revealed the presence of five FTG anomalies which were deemed prospective for hydrocarbon exploration. The primary FTG anomaly, the “Polaris Prospect”, which lies in the Rathlin Sound just off the Northern Irish coast, is coincident with a significant structural feature imaged on vintage 2D seismic data. This prospect lies structurally on-trend with the onshore 2008 Ballinlea-1 well, which successfully recovered good quality oil to the surface during testing. Further processing of the newly acquired gravity data indicate that this Polaris feature is a large areally extensive structure covering c. 30 sq km. All of the elements of a working petroleum system in this frontier basin, such as source, reservoir and seal have been proven in adjacent nearby onshore wells.

An initial P50 volumetric estimate, based on gravity and offset well data, indicates an in-place prospective resource potential of c. 530 MMBO for the Polaris Prospect. Given its near-shore location, it is possible that the “Polaris Prospect” could be drilled from an onshore Northern Ireland location with high level potential surface well locations currently being evaluated.

Speaking today, John O’Sullivan, Technical Director of Providence, said:

“We continue to be very encouraged by the results of the recent FTG programme, which has exceeded our pre-survey expectations. The Rathlin Basin has always been considered prospective due to the presence of a rich oil prone source rock, however poor seismic imaging has historically rendered it difficult to determine the basin’s true hydrocarbon entrapment potential. We believe that our application of new technologies such as Full Tensor Gradiometry should allow for a complete re-assessment of this frontier basin. We have now commenced planning for a future drilling programme in 2014, which includes necessary site investigations, local permitting requirements together with regulatory and local stakeholder liaison.

“This planned drilling operation forms part of Providence’s ongoing multi-basin drilling programme which commenced last year with the successful appraisal of the Barryroe oil field, offshore southern Ireland. Drilling operations planned for 2013 include the upcoming deepwater exploration well on the Dunquin prospect, an appraisal well on the Spanish Point gas condensate discovery and an exploration well in the Kish Bank Basin. In 2014, we plan to drill an exploration well on the Polaris Prospect and an appraisal well on the Dragon gas field”.

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