At Providence's Annual General Meeting held this morning in Dublin, shareholders were up-dated on the Company's activities and on its future plans, the highlights of which include:
Production
Since last year's AGM, Providence has increased daily production over 16 x times from approximately 120 BOEPD to approximately 2,000 BOEPD through the acquisition of the Singleton oil field (onshore UK), the purchase of the Triangle oil and gas portfolio in the Gulf of Mexico (offshore United Sates) and the commencement of gas production from High Island A-268, also in the Gulf of Mexico.
A just published independent reserve report on the Triangle assets by Collarini Associates has confirmed total net remaining proved reserves at 1.57 MMBO + 22 BCF (or 5.24 MMBOE), with additional unrisked probable and possible reserves of 2.96 MMBOE and 2.93 MMBOE respectively as of January 1st, 2008. Based on the Triangle Asset Portfolio acquisition price of $67.5 million, Providence has captured the total reserve base (proved, probable and possible) for $6.07/BOE.
Development
The recently drilled Galveston A-155 Gas Project in the Gulf of Mexico is now scheduled for start-up in production in late Q4 2008, some 8 months after the successful drilling of an exploration well, which exceeded pre-drill estimates.
Following the successful drilling of the AJE 4 well in Nigeria, the next stage of the AJE Project in Nigeria is anticipated to be announced in the coming months. Providence is also examining its options with regard to this asset.
Drilling
As announced on June 19th, Providence is scheduled to commence appraisal drilling on its Hook Head Oil Project as well as the Dunmore Oil Prospect in the Celtic Sea later this summer. An option to drill a third well has also been taken.
Providence is currently finalising an extensive drilling programme for its Triangle portfolio in the Gulf of Mexico. Further news on this is expected over the coming months.
Exploration
Providence, together with its partners, ExxonMobil and Sosina, were awarded 13 new blocks in the Southern Porcupine (offshore Ireland) further demonstrating the attractiveness of the exploration potential of the Atlantic Margin. A seismic acquisition programme is underway on the Drombeg licences.
Addressing shareholders, Dr. Brian Hillery, Chairman of Providence, comments:
"This has been a very productive year for Providence. The acquisition of the Triangle oil and gas portfolio, following on from the acquisition of the balance of the Singleton oil field has substantially enhanced our cash flow generation capabilities. The Company continues to pursue a portfolio strategy focusing on international production, development and exploration. I particularly look forward to the prospect of the imminent drilling programme at Hook Head and Dunmore in the Celtic Sea and the upcoming drilling programmes at Singleton and Triangle that should result in meaningful increases in daily production. I believe Providence is very well placed to develop, and ultimately capitalise, on its extensive asset portfolio."