OilVoice - Providence Announces 2010 Singleton Drilling Programme

Providence Announces 2010 Singleton Drilling Programme

Friday, June 25, 2010

• Two well drilling programme confirmed
• BDF-28 drilling rig secured for Q3 2010 spud date
• Wells expected to provide c. 350 Boepd of additional production

Providence Resources P.l.c., confirms its 2010 drilling programme at the Singleton field, onshore UK. The Singleton field is located in the Weald Basin and currently produces c. 800 BOEPD from seven production wells. The field is operated by Providence (99.125%) with partner Noble Energy (0.8725%).

The 2010 drilling programme comprises the sidetracking of the X9 well to a new and more optimal location together with the addition of two new lateral sections to the currently producing X8x well, potentially providing c. 350 BOEPD of additional cumulative production. In addition, the new X9 sidetrack well has been designed for future acid fracture stimulation, thereby providing further incremental production potential. Providence has secured the BDF-28 drilling rig with a planned spud date during Q3 2010.

Speaking today, Tony O'Reilly, Chief Executive of Providence, said:
'Following our highly successful 2009 Singleton drilling programme, the 2010 activity is again aimed at materially increasing production rates as well as evaluating the potential of fracture stimulation and multi-lateral well technology. This drilling programme should not only boost daily production rates by over 40%, but it should also allow us to assess the impact of new production technologies at Singleton which are expected to form the cornerstone of our field redevelopment activities during the coming years.

Separately, despite recent events in the Gulf of Mexico, I can confirm that normal production rates continue from our portfolio of producing interests in that region'.

About Singleton
The Singleton oil field is located 7 km north of Chichester in onshore licence PL 240 in the Weald Basin, South of England. The field consists of two east west trending elongate horst blocks divided by a narrow graben. The wells produce from the Jurassic-aged Great Oolite formation, consisting predominantly of oolitic grainstones deposited during transgressive/regressive episodes. Since production commenced in 1989, the field has produced c. 3.7 MMBO, which represents a recovery factor to date of c. 3.5%. Published data from similar fields in the area suggest an ultimate recovery factor of up to c.10% should be achievable. Recent studies (2008) suggested an original oil in-place resource of up to c.107 MMBO, a 50% increase over previous estimates which indicates that there is up to c. 7 MMBO of potential remaining reserves. The produced oil is a 37o API gravity crude and is trucked to the Holybourne rail terminal.

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