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All very quiet on the news,down on the irish exchange.

winner,last time I looked it was up 2.5% at 7.5c . Agree the response is underwhelming but spud was expected. Now for the rest of 2008 Drill Programme....

Cenkos note on Aje today.

http://www.providenceresources.com/html/documents/PVRAjeDrilling08.pdf

Tick up with two market makers moving on the bid.could be the start of a steady increase in sp.

winner,plenty of rises to come in next 6 months.

paint still drying here.April update on aje4 which will not be flow tested,so i doubt much increase from a positive result.

2008 Drill Program will be released soon. News on farmouts hopefully soon too. Seismics to begin at Dunmore on 23 Feb.

1st shot of 2008!! At last...

winner - not too sure there will not be some impact on the sp, this from the Cenkos Note.....

http://www.providenceresources.com/html/documents/PVRAjeDrilling08.pdf

"........If the Aje-4 well is successful, it is expected that the Aje Partners could be in a position to
declare a declaration of commerciality and proceed to the fast track development of the Aje
Field. Development options include pipeline to WAGP (West African Pipeline) with FPSO
for liquids and/or sub-sea pipeline to shore."

The odds are stacked in favour of sucess there havingf been further seismic since drilling of Aje-3.

My thoughts for what they are worth.

poo,the low hanging fruit at Aje and Hook Head augurs for a good 2008 here...

That's what I think hermana.

I am particularly eager to what lies beneath at Hook Head.

Cenkos note of 15/02 states that PVR have hired the rig at $400k a day on a usage rate. Good deal!

16 February 2008
Irish Examiner.ie
Providence set to start Hook Head drilling

By Geoff Percival
PROVIDENCE Resources yesterday confirmed that it is on course to begin its planned summer drilling programme at its Hook Head project after managing to secure a rig, amid tough competition for such machinery.


The Dublin-based oil and gas exploration company initially highlighted significant oil reserves at the site in the Celtic Sea last October and earmarked this summer for further drilling work.

It has now secured a semi-submersible rig for the programme from international offshore drilling contractor Transocean.





Providence is likely to start drilling at Hook Head in June or July, but it is not yet clear how big a window of opportunity it has, in terms of duration.

The primary objective of the programme will be to further appraise the Hook Head oil accumulation. It is thought it has a capacity of around 70m barrels of oil.

Depending on the outcome of this appraisal programme, the partners (Providence holds a 43.5% stake in the project, with five other companies holding interests) may also decide to drill a further appraisal well on the adjacent Dunmore East 50/6-1 oil discovery, 20km north of the Hook Head accumulation.

The drilling round is fully funded, with Providence having agreed a $250m (170m) credit facility with Macquarie Bank last year.

When we announced the successful discovery at Hook Head in October 2007, we confirmed that our immediate intention would be to try to secure a rig for future drilling, said Providence chief executive Tony OReilly Jnr. In a very tight rig market, I am therefore very pleased to report that we have been able to secure and negotiate a flexible contract with Transocean for our upcoming summer drilling in the Celtic Sea.

With further appraisal success, it should not only allow us to continue to build on the discovery of the Hook Head oil accumulation but also allow us to advance the development potential of the many other undeveloped discoveries in the Celtic Sea Region.

From today's Sunday Times!

Article in 'Share watch' column

Headline ' Celtic sea may yield black gold'
'Breathless announcements from Irish exploration companies about supposed oil or gas discoveries are as common as muck. Problem is usually they dont amount to anything. Remember Helvick in 1980's ? Everyone was convinced that the Celtic sea discovery was going to turn us all into oil Sheikhs overnight. Also, it wasn't to be - the oil wouldn't flow. So when Providence resources announced last year that it too had struck black gold in the Celtic sea, nobody took too much notice. Maybe they should have. Last week Providence secured a rig to begin drilling Hook head site. Analysts say that finally this may be a commercially viable Irish oil well, with Davy giving the company a potential risked valuation of up to 32cent a share. With a current share price of 8c, and plenty of potential upside, it may be worth a punt.

Author Mark Paul

From Sunday Tribune yesterday,

Tribune Archive


Providence says it has the resources to keep on drilling
Maxim Kelly





PROVIDENCE RESOURCES has no plans to go back to equity markets to raise capital for its planned summer drilling program.

Providence chief executive Tony O'Reilly Jnr said the company could be drilling up to eight wells in 2008 and had enough funds after securing a 250m revolving credit facility from Macquarie Bank last year.

"At the end of the day we don't want to dilute our shareholders. We will go back if absolutely necessary, but that's why we're focusing on cash flow now, " O'Reilly told the Sunday Tribune.

The AIM and IEX-listed firm has secured the use of a $400,000 per day Transocean semi-submersible rig to begin drilling two sites off Hook Head in the south east this summer, with an option to drill its site off Dunmore if the opportunity arises and with the approval of its Celtic Sea partners.

In terms of prospective recoverable resources, Providence expects Hook Head to yield 70 million barrels of oil, while Dunmore, 20km north of the Hook Head field, is expected to contain up to 18 million barrels .

"On prospective recoverable resources, with regard to Hook Head we are looking at 70 MMBO (millions of barrels of oil); for Dunmore it is up to 18 MMBO. We are just making best use of the rig when we have it in the Celtic Sea as we have an option to utilise it and Dunmore already."

In 2008, O'Reilly said Providence aimed to drill one site in Nigeria, up to three in Ireland, continue its two productions in the British Singleton field, two in the Gulf of Mexico "and maybe some others".

O'Reilly added that this summer's Hook Head appraisal drilling would allow Providence to advance the development potential of the other undeveloped discoveries in the Celtic Sea region.

Providence Resources lodged two licence applications with the department of natural resources in December for exploration licences off the west coast. The company already has stakes in the deep water Dunquin field off the south west coast, and the Spanish Point area off the Clare coast.





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Exxon want to farm out up to 40%, min 15% of their stake in dunquin.Not the best news but they still seem committed to the drilling.

winner,normal derisking strategy on a wildcat propsect. Too early to say if January 2009 Drills are still a goer.

just eight months from the end of deadline,will be quite a feat to meet q1 09.

Exxon woo new partners to allay Dunquin drilling costs


Friday February 22 2008


US oil giant ExxonMobil said yesterday that it is looking for farm-in partners to allay the cost of drilling on its giant Dunquin prospect in Porcupine basin off the west coast.


The news is a major boost for its Irish exploration partner Providence Resources, the company responsible for bringing Dunquin to the attention of the US oil giant in the first place.

Providence secured the Dunquin licence in November 2004. The Irish explorer held an 80pc stake in the license with its partner Sosina holding the balance.

Then in 2006 it announced a farm-out to ExxonMobil who in return for an 80pc share undertook to cover the cost of an extensive exploration programme. Apart from a detailed seismic survey, the US giant was committed to drill up to two wells on the acreage -- provided the results of the seismic warranted further exploration.

In turn Providence saw its share fall to 16pc and Sosina to 4pc.

The decision on whether or not to drill has to be taken by August this year but the decision to look for a partner indicates that Exxon has already decided to press ahead with the drilling commitment.

In a statement issued yesterday ExxonMobil said it is offering half of its 80pc share and will accept bids for stakes of 15pc or more. It also expressed interest in accepting an asset swap in return for the 40pc share -- stating it would accept an equity position in a similar exploration play or an undeveloped discovery.

By taking in a partner ExxonMobil is following a long standing industry tradition of spreading the risk on what is essentially a new exploration province.

ExxonMobil said two prospects have been identified, Dunquin North and Dunquin South. Both are anticipated to hold gas or gas/condensate with the estimated potential to hold over 18 trillion cubic feet of gas -- Corrib holds one trillion cubic feet.

This estimate is referred in the industry as a 'P10' figure, meaning that there is roughly a 10pc chance that it will be proven up by drilling.

It also said that both are ready for drilling, meaning all the preparation work barring the choice of a location for the rig has been completed.

The decision to offer part of its stake will not affect the share held by Providence or Sosina.

Providence is the operator of the acreage but under the first farm-out deal in 2006, ExxonMobil is to assume this role once it gets to the drilling stage.

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It appears to be on track and providence will keep its complete stake.Good news indeed,but nothing is set in stone until the drill bit is turning.
The farm-out seems to be standard risk sharing on a high risk (p10)but ultimately a massive return on the investment if proven up.
providence share holders look to be in for some very exciting times ahead,good luck to all who hold.