Providence confirms oil discovery, Offshore Ireland

Providence Resources Plc, together with its partners announces that it has now ended its well testing operations on the 50/11-3 Hook Head appraisal well, offshore Ireland. This well, which is located in c. 240 ft. water depth and is c. 60 km offshore southern Ireland, is situated in Standard Exploration Licence 2/07 in the North Celtic Sea Basin.

The licence interest is jointly held by six companies and is operated by Providence Resources, which has an interest of approximately 43.5%. The well was drilled to a total depth (TD) of 4,880 ft. true vertical depth subsea (TVDSS) using the semi-submersible drilling rig Petrolia, which Providence and its partners had contracted for a 50-day period.

Whilst key reservoir and fluid data were acquired during the initial well flowing period, down-hole mechanical conditions*, which were primarily related to the integrity of the casing string cement bond, delayed the implementation of a full flow test programme. Further work on the down-hole mechanical conditions was precluded by the time limitations relating to the rig contract.

Accordingly, the partners have now moved to suspend the well for future re-entry and potential use as a production well, having gathered all data that can be reasonably acquired at this time. The rig is currently being demobilized.

The Hook Head partners have committed to an immediate and detailed evaluation of the well results in the context of operations as well as reservoir data with a view to further appraisal/ development drilling at Hook Head early in the 2008 drilling season. Discussions have already commenced regarding the securing of an appropriate rig.