IRELAND - CELTIC SEA BASIN - SEL 2/07

Standard Exploration Licence 2/07

HOOK HEAD Oil Project (72.5%, Operator)
HELVICK Oil Project (62.5%, Operator)
DUNMORE Oil Project (72.5%, Operator)

SEL 2/07 was awarded to the Company and its partners in 2007. The licence is located in the North Celtic Sea Basin approximately mid-way between the Dragon gas discovery in the St George’s Channel Basin and the PETRONAS operated Kinsale Head gas field.

There are 3 oil appraisal projects located within SEL 2/07 – Hook Head, Helvick and Dunmore.

 

Hook Head

Hook Head has had four wells drilled on it, all of which have logged pay. Hook Head has estimated audited recoverable resources of c. 35 MMBO (2C) in the central panel. The Company has made an application for a Lease Undertaking for Hook Head to allow the partners to evaluate innovative methods to commercialise this discovery with third parties. The current working interests in Hook Head are Providence (72.5%), Atlantic (18.3%), and Sosina (9.2%), with the Company acting as Operator.

 

Helvick and Dunmore

The audited recoverable resource estimate for Helvick is c. 3 MMBO, whilst the joint ventures’ latest internal work indicates a STOIIP resource estimate for Dunmore of up to c. 17 MMBO. The current working interests in Helvick are Providence (62.5%), Atlantic (18.3%), Lansdowne (10.0%) and Sosina (9.2%), with the Company acting as Operator. The current working interests in Dunmore are Providence (72.5%), Atlantic (18.3%), and Sosina (9.2%), with the Company acting as Operator.

In November 2013, the Company agreed a phased farm-in in relation to the Helvick and Dunmore discoveries with MFDevCo, formerly known as ABT Oil and Gas, a UK based company who has proprietary technology for the deployment of low cost development solutions for marginal fields. As part of the farm-in, MFDevCo will assist the joint venture partners in the carrying out of a detailed phased work programme. In March 2016, the Minister awarded a separate Lease Undertaking for both the Helvick and Dunmore oil discoveries for a period of 2 years.

The MFDevCo work programme will determine whether the discoveries can be developed commercially, through the use of MFDevCo’s innovative low cost development technologies. If the joint venture partners determine that the discoveries can be developed commercially, MFDevCo will carry out the necessary work required to prepare and submit, to the Minister, an outline plan of development and an application for a Petroleum Lease in respect of each discovery.

Subject to the award of a Petroleum Lease by the Minister, the next phase of the work programme would then involve the preparation and submission of a formal plan of development to the Minister. Subject to completion of the work programme in full and Ministerial approval of the plan of development, MFDevCo will earn in aggregate a 50.0% working interest in the Helvick and Dunmore discoveries.

The award of the Lease Undertaking triggers a staged 50% farm-in into the Helvick asset by Marginal Field Development Company Limited (“MFDevCo”, formerly known as ABT Oil & Gas Limited ) with agreed work programme for staged equity participation of a 10% initial working interest assignment to MFDevCo, subject to Ministerial consent and a further equity assignment (up to 40%) based on agreed work programme and receipt of Petroleum Lease from the Minister and the approval of any Plan of Development. In 2010, Providence entered into an agreement to assign a 10% working interest in the Helvick Field to Lansdowne Celtic Sea Limited (“Lansdowne”). Now that the Lease Undertaking has been awarded, this assignment can be completed and with the initial phase farm-in by MFDevco, Lansdowne will be assigned a 9% interest, subject to Ministerial consent. Assuming completion of all phases of the farm in by MFDevCo, and the completion of the assignment to Lansdowne, the revised equity ownership for Helvick would be MFDevCo (50.0%), Providence (31.2%), Atlantic Petroleum (9.2%), Lansdowne (5.0%) & Sosina Exploration (4.6%).

For the Dunmore asset, the award of the Lease Undertaking triggers a staged 50% farm-in by MFDevCo, with agreed work programme for staged equity participation of a 10% initial working interest assignment to MFDevCo, subject to Ministerial consent and a further equity assignment (up to further 40%) based on agreed work programme and receipt of Petroleum Lease from the Minister and the approval of any Plan of Development. Assuming completion of all phases of the farm in by MFDevCo, the revised equity ownership for Dunmore would be MFDevCo (50.0%), Providence (36.2%), Atlantic Petroleum (9.2%) & Sosina Exploration (4.6%).

Related press release - 2016

18 February 2016
ASSET PORTFOLIO UPDATE - CELTIC SEA BASINS

Related press release - 2013

13 November 2013
ABT OIL & GAS AGREES TO FARM INTO HELVICK & DUNMORE OIL DISCOVERIES

Related press release - 2011

18 February 2011
NORTH CELTIC SEA OIL RESOURCE UPDATES
7 February 2011
PROVIDENCE AND SHELL SIGN MEMORANDUM OF AGREEMENT

Related press release - 2010

4 October 2010
PROVIDENCE AGREES HOOK HEAD FARM OUT DEAL
7 May 2010
DEVELOPMENT FEASIBILITY STUDY COMMENCES ON HELVICK OIL FIELD, OFFSHORE IRELAND

Related press release - 2008

5 September 2008
CELTIC SEA OPERATIONAL UPDATE-COMMENCEMENT OF DRILLING OPERATIONS AT DUNMORE
28 August 2008
CELTIC SEA OPERATIONAL UPDATE
5 August 2008
CELTIC SEA OPERATIONAL UPDATE - COMMENCEMENT OF DRILLING OPERATIONS
19 June 2008
PROVIDENCE ANNOUNCES DETAILS OF 2008 OFFSHORE DRILLING PROGRAMME
15 February 2008
PROVIDENCE SECURES RIG FOR OFFSHORE IRELAND 2008 - HOOK HEAD DRILLING PROGRAMME PLANNED

Related press release - 2007

10 October 2007
PROVIDENCE CONFIRMS SIGNIFICANT OIL DISCOVERY, OFFSHORE IRELAND
13 September 2007
PROVIDENCE AWARDED NEW LICENSING OPTION IN CELTIC SEA
10 September 2007
PROVIDENCE LOGS SIGNIFICANT HYDROCARBONS OFFSHORE IRELAND
20 August 2007
DRILLING OF HOOK HEAD WELL COMMENCES
13 August 2007
CELTIC SEA TRADING UPDATE
2 May 2007
CELTIC SEA 2007 DRILLING UPDATE
30 March 2007
PROVIDENCE ANNOUNCES IRELAND 2007 DRILLING PROGRAMME
28 March 2007
NEW CELTIC SEA LICENCE, POSITIVE OBS SURVEY RESULTS & THREE NEW FARM-OUT AGREEMENTS

Related press release - 2006

8 November 2006
SUCCESSFUL CONCLUSION OF SEISMIC SURVEYS, OFFSHORE IRELAND
25 September 2006
PROVIDENCE SECURES RIG SLOT FOR 2007 DRILLING PROGRAMME OFFSHORE IRELAND
15 September 2006
PROGRAMME OF ACTIVITY ANNOUNCED FOR CELTIC SEA & ST. GEORGES CHANNEL LICENCES
5 September 2006
CELTIC SEA LICENCES UPDATE - DEAL CONCLUDED WITH CHALLENGER MINERALS INC.

Related press release - 2005

13 October 2005
PROVIDENCE COMMENCES MAJOR IRISH OFFSHORE SEISMIC SURVEY