Petroleum systems modelling highlights a significant Avalon exploration play

Potential access to a total hydrocarbon resource charge of c. 8.67 BBO and c. 21.43 TSCF (equivalent to c. 12 BBOE).

18 July 2017 

SOSINA is pleased to provide a technical update regarding Licensing Option 16/27 ("LO 16/27"), which is located in the central Porcupine Basin, offshore Ireland and is currently operated by Providence. Following the recently announced farm-in transaction (9 June, 2017) with TOTAL E&P IRELAND B.V., a wholly owned subsidiary of TOTAL S.A., which is subject to the Consent of the Minister of State at the Department of Communications, Climate Action and Environment, the resultant LO 16/27 joint-venture will comprise TOTAL E&P Ireland B.V. (50%, Operator), Providence (40%) & SOSINA Exploration Limited (10%), collectively referred to as the "JV Partners".

On behalf of the JV Partners, Providence has recently provided the Petroleum Affairs Division of the Irish Government's Department of Communications, Climate Action and Environment with its End of Year 1 LO 16/27 Technical Report, which was focused on the hydrocarbon potential of the Paleocene "Avalon" prospect.

A large scale calibrated Petroleum Systems Model (PSM, c. 48,000 km2), which included the LO 16/27 area, supports the potential of a working petroleum system in LO 16/27 and demonstrates that the Avalon prospect could potentially access a total hydrocarbon resource charge of c. 8.67 BBO and c. 21.43 TSCF (equivalent to c. 12 BBOE). Whilst petroleum systems modelling in emerging frontier basins have inherently high degrees of uncertainty, the results of this study are directionally very positive for the potential charging of the Avalon prospect.

Further positive outputs from the PSM indicate that the risk of oil biodegradation in the Avalon prospect is low to moderate based on the modelled temporal variations in reservoir temperature. In addition, top seal integrity for the Avalon prospect was also assessed using inputs from both the PSM and a parallel basin-wide geo-mechanical modelling study. This work has positively demonstrated that there is a very low likelihood of a mechanically breached seal at Avalon based on modelled pore pressures.

About Avalon
Providence (80%) and SOSINA (20%) were awarded Licensing Option 16/27 in July 2016 as part of the 2015 Atlantic Margin Licensing Round. During regional interpretation and mapping of vintage 2D seismic reflection data, Providence identified an areally extensive (c. 550 km2) north-south orientated Paleocene basin-floor channel and fan system (?Avalon') within the axial part of the Porcupine Basin. The Avalon system, which is located c. 2,500 metres below the seabed, is interpreted to be sourced from the north of the basin and shales out in a southerly distal direction. A structural flexure down to the north negates the requirement for sandstone pinch out in the proximal direction, greatly improving reservoir sealing potential. The presence of a thick sandstone interval is indicated by compactional drape morphologies, which are imaged within parts of the system. The pre-existing Mesozoic structural grain appears to have exerted some control on deposition as evidenced by thickening of the system within pre-existing structural lows. Whilst limited seismic reflection gather data were available during the evaluation phase, the available data suggest the potential for a depth-conformant amplitude versus offset (?AVO') anomaly similar to the nearby Druid prospect in FEL 2/14. The main element of the agreed work programme during the 2-year Option period is the purchase, reprocessing and interpretation of existing 2D seismic reflection data.