SOSINA offered to convert LO 11/2 Spanish Point South from a Licencing Option (LO) to a Frontier Exploration Licence (FEL)

29 January 2014

Capricorn Ireland Limited (38%, Operator and wholly owned subsidiary of Cairn Energy), Providence Resources (32%), Chrysaor E&P Ireland (26%) and SOSINA Exploration (4%) were awarded Spanish Point South as a Licencing Option (LO) as part of the 2011 Irish Atlantic Margin Licensing Round. The Spanish Point South area lies in c. 400 metre water depth in the northern Porcupine Basin and is c. 160 km off Co. Clare, west of Ireland.

Having relinquished the mandatory 25% of the area, the Spanish Point South partners have been offered a follow-on Frontier Exploration Licence (FEL1/14) by the Minister of State at the Department of Communications, Energy and Natural Resources.

The principal element of the forward work programme is the acquisition of a 500 km² 3D seismic survey over the area, with survey planning having already commenced. Potential prospectivity has been identified in Upper Jurassic and Lower Cretaceous intervals similar to those which previously successfully tested oil and gas in the adjacent Spanish Point 35/8-2 and Burren 35/8-1 discovery wells.

Mr.  John O'Sullivan, Technical Director of SOSINA's partner Providence Resources has provided the following comment:

"Given our planned 2014 drilling activity on the Spanish Point discovery which lies adjacent to this acreage, this new licence award provides the partners with further acreage in a region which is drawing increasing industry interest. Our planned 3D seismic survey will be the third which the partners have acquired across the area, and which, in tandem with the 2014 Spanish Point well, should put us in the leading position in understanding the hydrocarbon exploration and development potential within the principle prospective Mesozoic intervals".