PVR - Providence Resources

The oilbarrel.com story on PVR, after commenting on Singleton and on the Aje situation, goes on: 'In the meantime, Providence is stepping up its exploration efforts closer to home. A “long offset” seismic survey is underway in the Celtic Sea, targeting the Ardmore, Hook Head and Blackrock prospects. The survey will also increase definition over the Pegasus, Dionysus and Apollo prospects in St George’s Channel, where Providence holds acreage next door to the Marathon-operated Dragon gas field. Should the US oil major decide to sanction a development the resulting infrastructure would improve the economics for Providence’s Pegasus and Dionysus prospects. For now, however, Providence is in talks with potential farm-in partners to reduce its current 80 per cent equity in the project.
A second seismic survey is planned for 2006, when 2,500 km of 2D will be shot over the company’s acreage in the Porcupine Basin off the west coast of Ireland. There are some major structures on the Atlantic Margin, including the Spanish Point discovery, thought to hold 1.25 tcf and 200 million barrels of recoverable reserves, and the supersized Dunquin prospect to the south, which covers 700 sq km in areal extent. With well costs out here running at around US$50 million, this project will require partners with deep pockets.
Less challenging is the company’s 10 per cent stake in the Challenger Minerals-operated Block UK 110/14c, which lies in shallow waters off the coast of Liverpool in northwest England. An appraisal well was recently completed on the 1990 West Lennox discovery but was drilled under tight hole conditions due to commercial sensitivities (the field is thought to be an extension of the nearby Lennox oilfield. This deposit, operated by BHP Billiton, is producing some 20,000 barrels per day and should it extend westwards then the potential upside in the West Lennox prospect could range from the equivalent of 1.6 million barrels of oil to 3 million barrels of oil. A tie-back to BHP’s Lennox platform 3 km away would ensure a swift and cost-effective development.
Providence also has a stake in the neighbouring block UK110/14d, home to the Crosby oil and gas prospect, which carries a potential recoverable reserve estimate of 15 million barrels of oil equivalent. This could be drilled in 2006.'