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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.

Winner,Dunquin is back on the agenda and that is a good thing imo.

Fingers crossed for 2008.

GUTTA,plenty of low risk drills augurs well.

could the exxon farm-out be a reason for the lack investors buying in here.

winner,they are waiting to hear if PVR are bidding on Marathon assets and rest of 2008 Drill program...

ExxonMobil Announces 2007 Irish Licensing Round Block Awards
IRVING, Texas--(BUSINESS WIRE2)--Exxon Mobil Corporation (NYSE:XOM) confirmed today its subsidiary, ExxonMobil Exploration and Production Ireland (Offshore) Limited, along with Providence Resources P.l.c. (Providence) and Sosina Exploration Limited (Sosina), has been awarded two additional licenses in the Porcupine Basin of the Irish Sea. The Irish Governments Department of Communications, Marine and Natural Resources announced the results of their 2007 Irish Frontier Licensing Round earlier this week.

The licenses are located in water depths exceeding 6,500 feet, and together comprise 13 blocks and an area totalling 760,000 acres. A number of potential leads have been identified across the two licenses including a prospect known as Drombeg.

The new awards bring ExxonMobils Porcupine Basin interests to 18 exploration blocks plus an option for an additional 15 blocks, giving the company and its coventurers an expanded exploration position in the basin. ExxonMobil has been awarded operatorship of the two new license areas and will apply its global leadership geoscience and deepwater drilling capability to these Irish operations.

Commenting on the award Tim Cejka, president of ExxonMobil Exploration Company, said, "We are delighted to add this new Porcupine Basin acreage to ExxonMobil's large and geographically diverse global resource base which includes assets in many key established areas as well as in new and emerging basins. This expanded position will allow us to evaluate a wider range of opportunities in this unexplored basin."

ExxonMobil is finalizing plans to conduct seismic surveys on the new acreage in the Porcupine Basin in the near future.

CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including resource recoveries and project plans, could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; the outcome of exploration programs; technical or operating factors; and other factors discussed under the heading "Factors Affecting Future Results" in the Investor Information section of our website (www.exxonmobil.com3) and in Item 1A of our most recent Form 10-K. References to "resource base" and similar terms include quantities of oil and gas that are not yet classified as proved reserves but that we believe will be produced in the future.

Notes to editors:

Equity ownership of awarded blocks: ExxonMobil Exploration and Production Ireland (Offshore) Limited 80%, Providence Resources P.l.c. 16% and Sosina Exploration Limited 4%
The Drombeg blocks are 52/5, 52/10, 52/15, 53/1, 53/6 and 53/11.
The Drombeg Extension blocks are 52/13 (50% only), 52/14, 52/18, 52/19, 52/20, 52/23 and 52/24 (50% only)
ExxonMobil Exploration and Production Ireland (Offshore) Limited also has an 80% interest in the

http://www.oilbarrel.com/home.html

Irish offshore to witness unprecedented exploration projects



Shell will return to drill further exploration wells in the area around Corrib this summer as one of the busiest years ever for offshore exploration kicks off.


The oil major's Irish boss Andy Pyle said his firm will return to the area of the Dooish prospect drilled for further exploration drilling. The original Dooish well, it has emerged, contained a mixture of gas and condensate -- a very light liquid which is close to oil in its properties and which, it is thought, could provide an ideal feedstock for the refinery at Whitegate. As things stand, the Cork-based refinery is not able to deal with the heavier residues left when the lighter components have been refined and this residue must be exported overseas at some significant cost.

Whatever it contains, the Dooish west well, scheduled to start drilling soon, will need to carry additional reserves to make it worth developing the field.

In total, firms are set to spend over $200m (135m) drilling at least seven exploration wells in the Irish offshore this year. The drilling is likely to heighten interest in Ireland's junior exploration sector, with companies like Providence and Island Oil & Gas the major players as far as Irish investors are concerned.

The two have invested heavily in the Irish offshore and have played a key role in ensuring major companies like Exxon Mobil continue to view the offshore here as a viable exploration province (Providence was responsible for enticing ExxonMobil back to Irish waters). The US oil giant is likely to drill its Dunquin prospect in 2009.

Prior to that, the interest will focus on the drilling by Shell, and, given its record-breaking status, that interest should be considerable. The Dooish well will definitely set two and possibly three records for the Irish offshore sector. Apart from the distinct possibility that it will end up as the most expensive exploration well drilled in the Irish offshore, it will be drilled using the largest rig ever seen in Irish waters and, at more than 1,400 meters, will set a new record for water depth.

It is often said that the best place to drill for oil is on the floor of the Stock Exchange, and for good reason. Regardless of the long-term outcome, the excitement surrounding the busy drilling season is almost certain to entice new investors into the exploration sector.

There should be an update from Nigeria soon...on AJE prospect soon (I think) hopefully no delays !

rf,in about 2 weeks!

Thanks hermana...fingers crossed for some good news !

rf,there will be no flowtest but hope Chevron give us some detail on timeframes for move to production.

Expecting RNS tomorrow on Apollo licence extension.

hermana, i note from another board the greed mongers- bottom fishers are
now taking stakes- positions in PVR ahead of the game