IRELAND - KISH BANK BASIN - SEL 2/11

Standard Exploration Licence 2/11

KISH BANK Oil Prospect (100%, Operator)

Licensing Option (LO) 08/2 was originally awarded to the Company (50.0%) and Star PETRONAS (50.0%) in 2008, with the Company as Operator. The area is located in the Kish Bank Basin, offshore Dublin, which is a Mesozoic basin bearing many geological similarities with the adjacent and prolific East Irish Sea Basin, offshore UK.

In December 2011, LO 08/2 was converted into SEL 2/11 with the same working interests and an exploration well commitment was made by the JV partners. In January 2012, a Foreshore Licence application was made to carry out temporary seismic and exploration drilling works on the Kish Bank Oil Prospect located approximately c. 8 kilometres offshore. This Foreshore Licence was granted to the Company in October 2012.

In February 2013, the Company decided to voluntarily surrender the Foreshore Licence, following discussions with the Irish government, when it became clear that there had been a transposition error in relation to the EIA Directive. In 2014, the transposition error was finally corrected.

In January 2016, the Company assumed a 100.0% working interest in SEL 2/11 and subsequently, the Company has sought a further time extension from the Irish government so that the Company can advance the requisite permitting process for the drilling of an exploration well. The Lower Triassic Sherwood Sandstone Kish Bank Oil Prospect has estimated un-risked recoverable prospective resources of c. 210 MMBO.

In November 2016, the Minister of State for the Department of Communications, Climate Action and Environment consented to the extension of the first phase of the Licence by two years until 17th August 2018 and an overall extension of one year to the licence term until 17th August 2020. Such extensions should allow for the planning, consent and drilling of an exploration well on the Kish Prospect within the first phase of the Licence. The Company also voluntarily relinquished 55.39% of the area under the Licence considered to be unproductive.

Related press release - 2016

16 November 2016
LICENCE UPDATE - STANDARD EXPLORATION LICENCE 2/11 - KISH BANK BASIN

Related press release - 2015

4 December 2015
LICENCE UPDATE - PROVIDENCE TO INCREASE ITS STAKE IN SEL 2/11 (KISH BANK) TO 100%