LONDON (Alliance News) - Irish focused oil & gas explorer Providence Resources PLC said Monday that analysis has confirmed the presence of 262 present-day seabed pockmarks at its Newgrange prospect, suggesting a source of hydrocarbons.
The AIM-listed explorer received third-party evaluation of data first explored in July. Providence said the new evaluation confirmed the existence of both biogenic and thermogenic hydrocarbon sourcing signatures.
According to Providence, this indicates the pockmarks are "possibly" related to hydrocarbon migration at the prospect, which lies about 260 kilometres of the south-west coast of Ireland.
"The quantum of current seabed pockmarks, together with the positive geochemical analyses, support the presence of potential active source rocks in the area that could be charging Newgrange with either liquids or gas," said Technical Director John O'Sullivan.
The data evaluation also confirmed buried pockmarks fields up to about 100 metres beneath the seabed, possibly indicating active hydrocarbon migration over a prolonged period.
O'Sullivan continued: "In addition, the presence and extent of the buried pockmark fields attest to the longevity of these potential sourcing systems, confirming that they are not just a present-day phenomenon. Whilst Newgrange is frontier in nature, the material prospective resources and low drilling cost continues to attract industry interest and we believe that these new technical data should serve to further bolster that enthusiasm."
Providence said discussion with potential farminees are "continuing" and, depending on the outcome of the discussions, drilling could take place in either 2019 or 2020.
The latest internal cost estimate is less than USD15 million, exclusive of mobilisation.
Shares in Providence Resources were up 1.6% Monday at 15.75 pence each.
