OilVoice - Providence Identifies Significant Oil Exploration Potential in the Kish Bank Basin

Providence Identifies Significant Oil Exploration Potential in the Kish Bank Basin

Thursday, April 08, 2010

Providence Resources P.l.c., the Irish oil and gas exploration and production company, whose shares are listed in London (AIM) and Dublin (IEX), provides an update on its exploration evaluation activities in the Kish Bank Basin, offshore eastern Ireland (the 'Dalkey Island' exploration prospect). Providence holds an operated 50% equity interest in Licensing Option 08/2 together with its partner, Star Energy Group (a wholly owned subsidiary of PETRONAS, the state oil company of Malaysia).

Dalkey Island Exploration Prospect
Previous exploration drilling in the Kish Bank Basin has confirmed the potential for petroleum generation with oil shows seen in a number of wells together with natural hydrocarbon seeps recorded from airborne surveys. New analysis of vintage 2-D seismic data has revealed the presence of a large undrilled structural closure at Lower Triassic level situated c. 10 km offshore Dublin. This feature, known as the Dalkey Island exploration prospect, may be prospective for oil, as there are prolific oil productive Lower Triassic reservoirs nearby in the eastern Irish Sea offshore Liverpool. Whilst the Dalkey Island exploration prospect could contain c. 870 MMBO in place, this undrilled prospect still has significant risk and the partners are currently advancing a focused work programme in order to better understand and hopefully mitigate these risks. However, given its location in shallow water and close proximity to shore, the prospect is of great interest as exploration drilling, together with any future development costs, are likely to be low.

Speaking today, Tony O'Reilly, Chief Executive of Providence, said:
'We are delighted to confirm that our ongoing analysis of the Kish Bank Basin has revealed the presence of a large untested structure that warrants further investigation. The Dalkey Island exploration prospect presents the potential for a large oil accumulation in shallow water off the east coast of Ireland. The partners have agreed on a focused work programme aimed at further de-risking this prospect, prior to any drilling programme.'