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The Newgrange prospect comprises a prospective resource potential of c. 13.6 TSCF GIIP or c. 9.2 BBO STOIIP.


14 July 2016

A top seal capacity analysis indicates potential for a hydrocarbon column of up to 350 metres.


SOSINA and Providence hereby provides a second technical update on the Schlumberger Exploration Collaboration Project over certain of our assets in the southern Porcupine and Goban Spur Basins, offshore Ireland (the "Collaborative Project"). In April 2016, SOSINA and providence announced the first technical update comprising the initial results of the analysis carried out over the Druid and Drombeg prospects. 


This time the results of the Collaborative Project concerns the Lower Cretaceous Newgrange carbonate prospect. Newgrange is principally located in Frontier Exploration Licence (?FEL') 6/14, which lies in c. 1,000 metre water depth in the Goban Spur Basin and is c. 270 km off the south west coast of Ireland. Providence Resources (80%) operates FEL 6/14 on behalf of SOSINA (20%).


Updated Volumetric Estimate 

A revised volumetric estimation was carried out for the Newgrange prospect incorporating the recently acquired (2014) 2D long offset seismic reflection profile data as part of the Collaborative Project. This work has significantly increased the un-risked prospective resource potential to c. 13.6 TSCF GIIP (Pmean, Gas Case) or c. 9.2 BBO STOIIP (Pmean, Oil Case). Oil and gas cases were modelled due to the uncertainty in hydrocarbon phase, which may be applicable in this area.


Top Seal Analysis 

The top seal capacity at the Newgrange prospect is considered to be a significant risk given its thin nature (c. 500 metres of overburden). A seal capacity analysis, which utilized offset well data, seismic velocity data and surface mapping has, however indicated that the present day top seal could potentially contain up to a c. 350 metres hydrocarbon column. The seal capacity analysis was taken into account in the updated volumetric estimate. 


Well Cost Estimate 

With operations currently being planned for a Druid exploration well in 2017, an internal scoping assessment of the incremental costs for an additional well on the Newgrange prospect was subsequently carried out. Capitalizing on economies of scale, this initial study indicates that such a well would cost c. $22.5 million with significant areas of further potential savings having been identified.



Mr. John Ødegaard,

Chairman of the Board

Mobile: +45 27 26 00 03





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