IRELAND - NORTHERN PORCUPINE BASIN - FEL 2/04

Frontier Exploration Licence 2/04

ASSET:
PROVIDENCE EQUITY:
OPERATOR:
PARTNERS:  

SPANISH POINT
58%
CAIRN ENERGY PLC
CAIRN ENERGY PLC 
SOSINA EXPLORATIONS

FEL 2/04 was originally licenced in 2004 and is located in the Northern Porcupine Basin, c. 170 km off the west coast of Ireland. The licence is situated in c. 400 metre water depth and contains the Spanish Point and Burren gas condensate and oil discoveries, respectively.

In 2008, the Company entered into a staged farm-in arrangement with CEPIL in relation to both FEL 2/04 and FEL 4/08, with CEPIL assuming an initial 30% working interest in return for carrying the costs of a 3D seismic programme, which was subsequently acquired in 2009.

In 2011, Senergy completed a Competent Persons Report on the licence which resulted in estimated recoverable contingent resources of 97 MMBOE (2C) for the Spanish Point field. At this point, the partnership moved to the next stage of the licence with a commitment to drill an appraisal well on Spanish Point. Under the CEPIL farm-in agreement, CEPIL’s cost exposure was capped for up to two wells (or well and potential side-track).

In May 2013, CEPIL entered into a farm in agreement with Cairn Energy PLC whereby Cairn became operator and agreed to drill an appraisal/exploration well on Spanish Point. As a result, the revised working interests for FEL 2/04 and FEL 4/08 then changed to Cairn
(38%), Providence (32%), CEPIL (26%) and Sosina (4%).

In July 2014, the Company announced that the planned Spanish Point appraisal well was delayed due to rig refurbishment issues with the selected rig.

In February 2015, the Company announced the acquisition of 100% of the issued share capital of CEPIL, effective from November 2014, thereby increasing the Company’s interest to 58.0% in both FEL 2/04 and FEL 4/08, and to 43% in FEL 1/14, for a nominal consideration of US$1 and a contingent payment of US$5 million, payable in the event that a Final Investment Decision (FID) is made for the Spanish Point gas condensate project. 

In March 2015, drilling was again deferred due to changes to the makeup of the joint venture and the consequent delay to the securing of equipment and other necessary requirements.

In October 2015, the Company confirmed that it had commenced a farm-out process for part of its interest in FEL 2/04 (and adjacent licence FEL 4/08).

In 2017, as no partner sanction for drilling had been agreed, Cairn requested (on behalf of the joint venture) an extension to the term of FEL 2/04 (and the alignment of the phasing of FEL 4/08 with that of FEL 2/04) to allow further time for evaluation of the Spanish Point project economics which will, in turn, decide the future course of action on the asset.

The directors impaired the carrying value of the Spanish Point licences (FEL 2/04 and 4/08) in the year end 2016 accounts.

Related press release - 2016

11 March 2016
ASSET PORTFOLIO UPDATE - PORCUPINE & GOBAN SPUR BASINS

Related press release - 2015

27 October 2015
LICENCE UPDATE - SPANISH POINT AREA, NORTHERN PORCUPINE BASIN
10 March 2015
OPERATIONAL UPDATE - SPANISH POINT FIELD, NORTHERN PORCUPINE BASIN
9 February 2015
MARKET UPDATE

Related press release - 2014

14 August 2014
OPERATIONAL UPDATE - 3D SEISMIC SURVEYING OPERATIONS COMMENCE ON SPANISH POINT SOUTH AREA, NORTHERN PORCUPINE BASIN
9 July 2014
OPERATIONAL UPDATE - SPANISH POINT AREA, NORTHERN PORCUPINE BASIN

Related press release - 2013

9 July 2013
SPANISH POINT OPERATOR AND RIG CONTRACT

Related press release - 2012

29 August 2012
OPERATIONAL UPDATE - SPANISH POINT - WELL SITE SURVEY OPERATIONS
20 July 2012
SPANISH POINT DISCOVERY - OPERATIONAL UPDATE

Related press release - 2011

17 October 2011
PROVIDENCE AWARDED FOUR NEW LICENSING OPTIONS IN 2011 IRISH ATLANTIC MARGIN ROUND
14 March 2011
CHRYSAOR EXERCISES SPANISH POINT DRILLING OPTION
22 February 2011
OPERATIONAL UPDATE - SPANISH POINT & BURREN