New 3D seismic data indicate the presence of a significant Paleocene deep-water channelized system in the Ruadhan area previously referred to Spanish Point South

18 June 2015

The previous Amoco 35/18-1 well - that encountered strong hydrocarbon shows in a low permeability sandstone reservoir - appears to have been drilled on the margin of the channel. Interpretation and mapping of additional exploration objectives are ongoing

The partner of SOSINA Exploration, Providence Resources the 15 June provided a technical update on the Ruadhan (pronounced ?Rowan') 3D seismic survey in the northern Porcupine Basin, offshore west of Ireland. This survey, in an area previously referred to as "Spanish Point South", is situated in Frontier Exploration Licence (FEL) 1/14 which is located in c. 500 m water depth and c. 150 km off the west coast of Ireland. FEL 1/14 lies immediately adjacent and to the south of FELs 2/04 and 4/08 in which SOSINA Exploration holds a 4 % equity interest. Capricorn Ireland Limited (38 %) (The "Operator"), a wholly owned subsidiary of Cairn Energy PLC, operates FEL 1/14 on behalf of its partners, Providence Resources (58 %*), and SOSINA (4 %).

The Operator has recently completed an initial assessment of the Paleocene within FEL 1/14 using the newly-acquired 2014 Ruadhan 3D seismic survey. This interpretation has demonstrated the presence of a significant north-south orientated Paleocene deep-water channelized system that covers a minimum c. 14km2 area and which had been evident on the previous 2D seismic profiles.

However, these new data provide a significant improvement in the detailed imaging of the system and indicate that the previous 1988 Amoco (now part of BP) operated 35/18-1 well was drilled into a channel margin location, which is consistent with Amoco's post-drill interpretation. The 35/18-1 well encountered a gross c. 70m interval of Paleocene deep-water sands, which exhibited good porosities (c. 20%) but low permeabilities (0.4 mD-13 mD) at a depth of c. 3,000 m BML. Strong gas shows (up to 3 %) were encountered whilst drilling and a conventional core was described by Amoco as bleeding ?light tan oil'. As currently interpreted, the channel extends southwards and down-dip out of the Ruadhan 3D survey area into the southern part of FEL 1/14, which is covered by existing 2D seismic data. Further assessment of the exploration potential of the channel, together with additional Tertiary, Lower Cretaceous and pre-Cretaceous objectives, is continuing.

*Providence has agreed to assign a 15% equity interest in FEL1/14 to Chrysaor Holdings which is subject to final ratification and which will reduce Providence's equity interest from 58% to 43%.

TERMS USED IN THIS ANNOUNCEMENT
BML - Below Mud Line (Seabed)
km - Kilometres
m - Metres
mD - Millidarcies