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

The Company currently holds a 58% working interest in FEL 2/04 with Cairn (operator) and Sosina. The licence is located in the Northern Porcupine Basin, c. 170 km off the west coast of Ireland and situated in c. 400 m water depth. The Licence is currently under discussion with the Irish regulatory authorities as to future status.

 

History

FEL 2/04 was originally awarded to the Company (80%, operator) and partner Sosina (20%) in 2004.
In 2008, the Company entered into a staged farm-in arrangement with Chrysaor E&P Ireland Limited (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, 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 with the objective 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 to 2015 due to rig refurbishment issues with the selected rig.
In February 2015, the Company acquired 100% of the issued share capital of CEPIL, effective from November 2014, thereby increasing the Company’s working interest to  58%  in  both FEL 2/04 and FEL 4/08 for a nominal consideration of US$1.
In March 2015, planned drilling activity was again deferred due to changes to the make-up of the joint venture and the consequent delay to the securing of equipment and other necessary requirements.
In 2015/2016, the Company initiated a farm-out process for part of its interests in FEL 2/04 and 4/08. Due to the challenging economic conditions and re-assessed geological interpretation, no farm-out was concluded and the JV Partners were unable to sanction drilling.
As a result, the partners (led by the operator, Cairn) engaged in discussions with the Irish regulatory authorities as to future status – these discussions are ongoing. Accordingly, due to this uncertainty on licence status, the Directors elected to impair the carrying value of the Spanish Point assets in its 2016 year-end 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
21 January 2014
TECHNICAL UPDATE - SPANISH POINT SOUTH AREA, NORTHERN PORCUPINE BASIN

Related press release - 2013

9 July 2013
SPANISH POINT OPERATOR AND RIG CONTRACT
7 May 2013
COMMERCIAL UPDATE - SPANISH POINT AREA FARM IN BY CAIRN ENERGY PLC

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

Related press release - 2010

12 June 2010
3D SURVEY HIGHLIGHTS RESOURCE POTENTIAL OF SPANISH POINT AREA

Related press release - 2009

7 October 2009
SPANISH POINT OPERATIONS UPDATE - 3D SEISMIC SURVEY
22 June 2009
PROVIDENCE COMMENCES SPANISH POINT 3D SEISMIC SURVEY
28 January 2009
PROVIDENCE RESOURCES P.L.C. AWARDS SPANISH POINT 3D SEISMIC SURVEY

Related press release - 2008

12 August 2008
SPANISH POINT FARM-OUT AGREEMENT

Related press release - 2007

16 July 2007
SPANISH POINT SEISMIC SURVEY UNDERWAY