Update on Aje Oil Field

3 Oct 2005 07:01

Providence Resources PLC03 October 2005 Providence Resources P.l.c. 3 October 2005 Providence Resources Plc ("Providence" or "the Company") UPDATE ON AJE-3 APPRAISAL WELL OFFSHORE NIGERIA Providence Resources Plc ("Providence") is pleased to announce that the Aje-3appraisal well has reached its target depth at 8482 feet MD. The well, which islocated in approx. 1,000 metres water depth, reached its reservoir objectivesand a comprehensive logging and modular dynamic testing (MDT) programme wasacquired and interpreted. Significant gas shows recorded whilst drilling theUpper Turonian reservoir, together with wireline log data, suggest that thissection is gas bearing. The result of the MDT confirms the presence of oilwithin part of the Cenomanian reservoir. Having successfully fulfilled itsgeological objectives, the Aje-3 appraisal well will be plugged and abandoned. The Aje-1 & 2 wells both tested hydrocarbons and equivalent reservoir intervalswere encountered in the Aje-3 well. Both the Turonian and Cenomanian reservoirformations in the Aje-3 well were found to be down dip from the previous wells.The Turonian reservoir interval in Aje-3 was above the gas-water contactencountered in both Aje-1 & 2. The Cenomanian reservoir interval was encountereddeeper than the oil-water contact seen in the Aje-2 well though modular dynamictesting recovered oil from this section. Initial integration of the Aje-3 welldata with the pre-drill seismic interpretation, now suggests that the Ajeaccumulation may well be areally more extensive than had been previouslythought, extending further to the north into shallower (approx. 100 metres)water depths. Ongoing interpretation of the newly acquired data will evaluate Aje as well asthe potential elsewhere in Block OML 113. All three wells on the Aje structurehave now proven the existence of an active petroleum system and the presence ofa well developed reservoir and seal in the block. Tony O'Reilly Jnr., CEO of Providence commented "The Aje-3 appraisal well has provided considerable valuable information to progress our understanding of the Aje Field. Providence looks forward to reviewing updated reservoir models of the field in the coming months with a view to further appraisal drilling in 2006. "The proven existence of active oil and gas systems at multiple levels in this area, together with the number of other significant prospects within the OML 113 license, confirms an attractive investment for Providence". *Participants in Block OML113 are Yinka Folawiyo Petroleum Company Limited(Operator), Lundin Petroleum (Technical Advisor to Operator), Palace ExplorationCompany, Challenger Minerals (Nigeria) Limited, Providence Resources P.l.c.,Howard Energy Co. Inc. and Syntroleum Corporation. Contacts:ProvidenceTony O'Reilly Chief Executive Tel: +353 1 667 5740Jnr. Powerscourt Tel: +44 (0) 207 2365615 Rory Godson Mob: +44 (0) 7909 926020 Victoria Brough Mob:+44 (0) 7967 044840 Murray ConsultantsPauline McAlester Tel: +353 1 498 0300 NOTES TO EDITORS The Aje Structure is situated in Oil Mining Lease 113 (OML 113) in water depthsof c. 3,000 feet and is 15 miles offshore Nigeria, being some 40 miles southwestof Lagos. Providence is entitled to 6.328% of net revenues from any developmentswithin OML 113, offshore Nigeria, which includes the Aje field.OML 113 contains a number of further un-drilled exploration leads and prospectsin addition to the Aje Structure. The participants have also entered into an Area of Mutual Interest agreementcovering areas adjoining OML 113. About Providence ResourcesProvidence's active oil and gas portfolio includes interests in Ireland(offshore), the UK (onshore and offshore) and West Africa (offshore Nigeria).Providence's portfolio is balanced between production, appraisal and explorationassets, as well as being diversified geographically.Comprehensive information on Providence and its oil and gas portfolio, includingthe AIM Admission document and Annual Report 2004 are all available fromProvidence's website at www.providenceresources.com This information is provided by RNS The company news service from the London Stock Exchange EN