LONDON (Alliance News) - Providence Resources PLC Thursday said it is part of a group of companies that has been offered a licensing option in the Porcupine basin offshore Ireland as part of the second phase of awards under the Atlantic Margin Licensing Round.
The Irish-based exploration company teamed up with its long-term partner Sosina Exploration Ltd to bid during the licensing round, with Providence set to hold an 80% interest and Sosina 20%.
The pair have been offered licensing option 16/27 over a 1,324 kilometre area off the west coast of Ireland that is situated in 1,300 metres of water depth. The option lies adjacent to, and north of, the Frontier exploration licence in which Providence holds a 16% interest, which is soon expected to rise to 20%.
Providence said it identified a 550 kilometre squared, north-south orientated, Paleocene basin-floor channel and fan system, otherwise known as the Avalon, in the new area whilst interpreting and mapping historical 2D seismic data.
Although further work will need to be carried out, Providence believes there is potential for the new area to hold an anomaly similar to that of the Druid prospect in the nearby Frontier exploration licence.
"We are delighted to have secured this option over Avalon, which further demonstrates our growing position in the emerging Porcupine Basin Paleocene play. We are particularly encouraged with Avalon given its similarities to the nearby Druid prospect as well as its location adjacent to the Dunquin North residual oil accumulation which demonstrates the presence of an active petroleum system in this area," said John O'Sullivan, technical director at Providence.
Providence said the "main element" of the agreed work programme with Sosina over the next two years is focused around purchasing, reprocessing and interpreting existing 2D seismic data.
Providence shares were trading flat on Thursday morning at 12.0 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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