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First farm out deal agreed on Spanish Point

5 July 2007

SOSINA and its partner Providence Resources (operator) welcome their first farm out deal with Challenger Minerals Ltd. on their Spanish Point Project. Challenger will take a 10% interest leaving SOSINA and Providence with 18% and 72% stakes

SOSINA and Providence, today announce that they have agreed the first farm out deal with Challenger Minerals (Celtic Sea) Limited ("CMCSL") a subsidiary of GlobalSantaFe Corporation (GSF) on the Spanish Point Project in the Porcupine Basin, off the west coast of Ireland. This farm out is subject to approval from the Irish Minister for Communications, Marine and Natural Resources.

Under the terms of the deal, CMCSL will take a 10% interest in the Spanish Point Project, leaving Providence and its partner SOSINA with 72% and 18% stakes, respectively. Further farm out discussions continue with other third parties.

Additional information to the editor

SOSINA now holds an 18% interest in FEL 2/04, which covers blocks 35/8 & 9 located in the Porcupine Basin, off the west cost of Ireland. The blocks are situated in 300-400 metres of water and are located approximately 200km of the coast.

The Spanish Point field was discovered in 1981 by Phillips Petroleum and a consortium which included Atlantic Resources Plc, Providence's predecessor company. The discovery well (35/8-2) flowed circa 1,000 BOPD and 5 MMSCFGPD from a hydrocarbon column (total thickness of 1,400 ft) over sandstones of Upper Jurassic age. However, due to a combination of low commodity prices and production tests at that time, the Project was not declared economic and the licence was subsequently relinquished. Chevron subsequently held the licence until 2001.

Providence Resources Plc applied for and became operator of the Spanish Point licence in November 2004, and now holds 72% of the licence for a 15 year-term. Providence's geological team carried out a geological and geophysical analysis which supported and improved the 1981 post-drill analysis of volumetrics of hydrocarbon in place. Providence also reviewed the work carried out by Chevron Corporation. The combination of this new analysis, coupled with advances in technology and an improved oil/gas price, suggest that commercial development of Spanish Point is now possible.

Accordingly, the Board of Providence commissioned extensive studies to confirm reservoir profiles, development options and economics. These studies, comprising the work of in-house engineers as well as third party consulting engineers, demonstrate a feasible and robust economic development plan with substantive potential economic value.


Spanish Point

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David J. Davies

Managing Director

SOSINA Exploration Ltd

Mob: +44 (0)7703 293 649

Golden Cross House

8 Duncannon Str

London WC2N 4JF

Tel: +44 (0)207484 5071

Fax +44 (0)20 7884 5100

1 Berry St


AB25 1HF

Tel: +44 1224 845464

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