28 January 2009
300 Sq kilometer seismic survey to be acquired in Q2/3 2009 by the world's first "geophysical toolbox" vessel BOS Angler operated by Bergen Oilfield Services (BOS)
The Spanish Point partners Providence Resources (operator), Chrysaor and SOSINA have awarded the Spanish Point 3D seismic survey acquisition contract to Bergen Oilfield Services AS. This 3D seismic survey programme, which is expected to commence in Q2/3 2009, will cover a c. 300 square kilometre area primarily over the Jurassic Spanish Point gas condensate discovery. The survey will be acquired using the recently refitted BOS Angler 3D seismic survey vessel.
Providence (56%) operates the Spanish Point licence on behalf of its partners Chrysaor E&P Ireland (30%) and SOSINA Exploration (14%). The budgeted costs of this survey will be borne 100% by Chrysaor as part of the previously announced farm-out agreement.
The original 35/8-2 Spanish Point discovery well flowed c. 1,000 BOPD and c. 5 MMSCFGPD from one of four logged hydrocarbon bearing intervals. Third party modelling of these well data has suggested that an optimally placed and stimulated development well could flow at significantly higher rates from all hydrocarbon bearing intervals. The partners consider that the acquisition of a 3D seismic survey over Spanish Point is vital in order to further enhance the detailed understanding of the reservoir, as well as to optimise potential future well placement. The survey has also been designed to accommodate future time lapse 3D seismic surveying, which has been demonstrated to be particularly effective in monitoring fluid movement during field production.
Third party studies to date have indicated that the Spanish Point accumulation may constitute a significant commercial discovery, containing median contingent recoverable resources of c.1.4 TSCF and c.160 MMBO. Looking ahead, it is believed that well stimulation technology may be the key to commercialising Spanish Point. This 3D survey will help to optimize the best future well locations and the most effective appraisal & production test program."
Contacts:
Dr. David J. Davies Managing Director, CEO Sosina Exploration Ltd 1 Berry St Aberdeen AB25 1HF Tel: +44 1224 845464 | Mr. John Ødegaard, Chairman of the Board Tel: +45 35 31 10 02 Mobile: +45 27 26 00 03
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Notes to Editors
About the Spanish Point Discovery
SOSINA currently holds an 14% interest of FEL 2/04, which covers blocks 35/8 & 9 situated in the Porcupine Basin, off the west coast of Ireland. The blocks are situated in 300-400 metres of water and are located approximately 200 km off the coast. Spanish Point 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 c. 1,000 BOPD and c. 5 MMSCFGPD from a hydrocarbon column of c. 1,400 ft in sandstones of Upper Jurassic age. However, due to a combination of low commodity prices, high cost of development and lack of an indigenous gas market and infrastructure at that time, the project was not declared economic and the license was subsequently relinquished.
Together with Providence SOSINA applied for the Spanish Point license in November 2004 which has a 15 year-term. Providence became the operator and Providence's geological team carried out a geological and geophysical analysis which supported and improved the 1981 post-drill analysis. The combination of this new analysis, coupled with advances in technology and an improved oil/gas price regime, suggest that a commercial development of Spanish Point might be possible.
In August 2008, SOSINA and Providence signed a staged farm-out agreement with Chrysaor Holdings Limited, a privately owned development led company.
The terms of the farm-out agreement provide for Chrysaor to conduct a significant appraisal work programme on the Spanish Point discovery in return for a minimum 30% interest in Spanish Point. Chrysaor then has the option to earn up to a maximum 70% interest in the event that two wells are subsequently drilled on Spanish Point. The agreement is subject to certain milestones being achieved with an initial commitment by Chrysaor to fund the budgeted cost of a 3-D seismic programme on Spanish Point as consideration for the initial 30% interest. Chrysaor may then undertake to finance the drilling of up to two appraisal wells where it will commit not less than 60% cost share, whilst also capping the other partners' cost share, to earn an additional interest of up to 40%, thereby reducing the other partners' stakes pro rata.
Terms used in this Announcement
BOPD Barrels of Oil per Day
BOEPD Barrels of Oil Equivalent per Day
MMSCFGPD Millions of Cubic Feet of Gas Per Day
MMBO Million Barrels of Oil
TSCF Trillion Standard Cubic Feet
Definitions in this press release are consistent with SPE guidelines.
About Bergen Oilfield Services AS
Bergen Oilfield Services AS (BOS) is a Norwegian offshore seismic survey company with a focus on subsea technology commercialisation. We manage the whole value chain from vessel ownership, data acquisition through to processing; ensuring a high quality, on time response. The organisation is driven by the quality of its services, the continuous pursuit for innovative solutions and the expertise of its employees. At all stages of our operations safety, quality and environmental preservation are paramount.
About BOS Angler
Bergen Oilfield Services (BOS) are proud to announce the re-launch of the BOS Angler, the world's first "geophysical toolbox" vessel. With the trend for combination and on demand exploration tools required by our clients, the BOS Angler is one of the BOS solutions to an ever growing industry demand.
E&P companies realise that to achieve the best prospect imaging solution, a combination of new and proven existing exploration tools are required. The BOS Angler coupled with the BOS team are ahead of the game in delivering bespoke solutions to global exploration challenges. Not just seismic, not just better seismic but a combination of exploration tools to deliver data and images for exploration success.
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The BOS Angler |
Following a successful upgrade the BOS Angler is equipped for multiple streamer surveys and prepared for OBS and other seabed operations. BOS Angler is a DP II Ice Class survey vessel and is already attracting interest for work in Arctic and other northern exploration latitudes.
BOS Angler is the latest vessel to join the growing BOS Fleet - all vessels are owned and managed by Bergen Oilfield Services AS. To date, BOS 2D & 3D operations have achieved the highest levels of operational performance courtesy of our very experienced seismic crew base. Contact Information at www.bergenofs.no
About SOSINA
SOSINA Exploration Ltd. is an independent oil and gas exploration company. The Company was founded in 2004, but with roots back as a sister company to the company Odegaard Ltd. acquired in 2006 by Schlumberger Inc.
SOSINA's active oil and gas portfolio includes offshore interests in Ireland and the UK. SOSINA's portfolio is balanced between appraisal and exploration assets. Comprehensive information on SOSINA and its oil and gas portfolio is available from SOSINA's website at www.sosina.co.uk.
