Providence selects contractor for seismic data programme at offshore prospect

Providence Resources announced on Tuesday that, along with its exploration partner at the Newgrange prospect, it has hired Gardline to carry out a new 2D seismic data gathering programme.

The AIM-traded oil and gas exploration firm said the programme is intended to examine the crest of the prospect and provide further data for the permitting of future exploration wells at the Frontier Exploration Licence (FEL) 6/14 off the west coast of Ireland.

Gardline is expected to conduct the data acquisition with its M/V Kommandor vessel in this year’s third quarter.

John O'Sullivan, technical director of Providence, said: "The Newgrange prospect provides significant stacked exploration potential at both Jurassic and Cretaceous levels with proven source, reservoir and seal demonstrated in the previous off-structure 62/7-1 exploration well. The relatively shallow nature of the reservoir intervals also means that this data acquisition programme may provide even further insight to de-risk the potential presence of hydrocarbons within the subsurface prior to drilling."

Providence owns an 80% stake in FEL 6/14, in which the Newgrange prospect is present at a depth of 1,000 metres and approximately 260 km off the south-west coast of Ireland.

The remaining share in the licence is held by Sosina Exploration Limited.

In the meantime, the company said that it is continuing talks with potential farm-in partners for the project.

"We are pleased to announce the award of the 2018 Newgrange data acquisition programme to Gardline and look forward to commencing operations during the summer months," said O’Sullivan.

As of 1623 BST, Providence Resources’ shares were down 2.78% at 10.50p.