LONDON (Alliance News) - Providence Resources PLC Monday said it had got positive early observations from the 3D seismic survey being undertaken in the northern Porcupine Basin, offshore west of Ireland.
The survey is taking place in the Frontier Exploration Licence 1/14, which is located in about 500 metres water depth about 150 kilometres off the west coast of Ireland. The licence lies immediately adjacent and to the south of FELs 2/04 and 4/08, in which Providence holds a 58% equity interest. Cairn Energy PLC's Capricorn Ireland Ltd operates FEL 1/14 on behalf of its partners, Providence Resources, and Sosina Exploration.
"The operator has recently completed an initial assessment of the Paleocene within FEL 1/14 using the newly-acquired 2014 Ruadhan 3D seismic survey. This interpretation has demonstrated the presence of a significant north-south orientated Paleocene deep-water channelised system that covers a minimum of about 14 square kilometres and which had been evident on the previous 2D seismic profiles," Providence said.
The new data provide a significant improvement in the detailed imaging of the system and indicate that the previous 1988 Amoco operated 35/18-1 well was drilled into a channel margin location which is consistent with Amoco's post-drill interpretation, Providence said.
The 35/18-1 well encountered a gross 70 metre interval of Paleocene deep-water sands which exhibited good porosities of about 20% but low permeabilities at a depth of about 3,000 metres below mud line. Strong gas shows of up to 3% were encountered whilst drilling and a conventional core was described by Amoco as bleeding 'light tan oil'.
As currently interpreted, the channel extends southwards and down-dip out of the Ruadhan 3D survey area into the southern part of FEL 1/14 which is covered by existing 2D seismic data, Providence said, adding that further assessment of the exploration potential of the channel, together with additional Tertiary, Lower Cretaceous and pre-Cretaceous objectives, is continuing.
"Similar to our recent experience with the Paleocene Druid prospect in FEL 2/14, modern 3D seismic imaging is again playing the key role in understanding the true nature of these potentially material Tertiary stratigraphic traps. These newly-acquired 3D seismic data allow for a significant uplift in our understanding of the previous 35/18-1 well supporting Amoco's channel margin interpretation whilst also potentially pin-pointing the location of the channel axis reservoir sweet spot," Providence Resources Technical Director John O'Sullivan said.
"Whilst these early observations are positive, further detailed seismic and well analyses are required in order to understand whether any potential resources associated with the main channel axis would merit the drilling of a new offset well," he added.
Providence Resources shares were down 0.1% at 24.10 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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