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The Spanish Point 3D seismic survey has been completed

1 August 2009

The data processing contract has been awarded to WesternGeco Limited

Providence Resources has successfully completed acquisition operations on the Spanish Point 3D seismic survey. This 3D seismic survey programme covered in excess of a c.300 km2 area primarily over the Jurassic Spanish Point gas condensate discovery and was acquired using the BOS Angler 3D seismic survey vessel. The data processing contract has been awarded to WesternGeco Limited. Providence (56%) operates the Spanish Point licence (FEL 2/04) on behalf of its partners Chrysaor E&P Ireland (30%) and SOSINA Exploration (14%).

The seismic vessel BOS Angler at port in western Ireland


Dr. David J. Davies

Managing Director, CEO

Sosina Exploration Ltd

1 Berry St

Aberdeen AB25 1HF

Tel: +44 1224 845464
Mob: +44 (0)7703 293 649

Mr. John Ødegaard,

Chairman of the Board

Tel: +45 35 31 10 02

Mobile: +45 27 26 00 03

About Spanish Point

Providence holds a 56% interest and is operator 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 licence was subsequently relinquished.

Providence applied for and became operator of the Spanish Point licence in November 2004 which has a 15 year-term. 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, Providence, together with its partner SOSINA, 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 3D seismic programme 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.

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 modeling 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 considered that the acquisition of a 3D seismic survey over Spanish Point was vital in order to further enhance the detailed understanding of the reservoir, as well as to optimise potential future well placement. The survey was designed to accommodate future time lapse 3D seismic surveying, which has been demonstrated to be particularly effective in monitoring fluid movement during field production.


BOPD: Barrels of Oil per Day

MMSCFGPD: Millions of Cubic Feet of Gas Per Day

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