Providence offered follow-on licence for off-shore option

Oil and gas exploration firm Providence Resources said it has been offered a follow-on frontier exploration licence for its Newgrange option.

The comany was awarded the option, which is 260km off the south west coast of Ireland in the Goban Spur basin, as part of the 2011 Irish Atlantic margin licensing round. It operates the licence, with an 80 per cent share, while partner Sosina Exploration has a 20 per cent stake.

Planning for a 1,000km 2D seismic survey has begun, the firm said.

“Previous drilling has highlighted the prospectivity within the Jurassic and Cretaceous intervals of the Porcupine Basin, with much current industry focus on these Mesozoic play systems,” technical director John O’Sullivan said. “ The recent Dunquin North exploration well has proven that oil has been generated in the adjacent southern Porcupine Basin which flanks the Goban Spur and that Cretaceous carbonates can provide high porosity massive reservoir systems. The new 2D seismic programme is being designed to de-risk the Newgrange prospect at both prospective levels and should provide the critical data in order to advance this material prospect towards drilling.”