Studies reveal Spanish Point potential

Providence Resources claims a new study of the Spanish Point discovery off western Ireland has revealed a potential `sleeping giant.'

Offshore staff

DUBLIN -- Providence Resources claims a new study of the Spanish Point discovery off western Ireland has revealed a potential `sleeping giant.’

Spanish Point is in Frontier Exploration Licence (FEL) 2/04 in the Main Porcupine basin. Phillips Petroleum discovered the field in 1981, in a water depth of around 400 m (1,312 ft),170 km (105 mi) offshore. Providence operates the license in partnership with Chrysaor E&P Ireland and Sosina Exploration.

The partners have completed interpretation of 3D seismic acquired over the permit in 2009 and integrated this into a technical assessment of the discovery.

They have also performed new analysis on core taken from the discovery well but only made available last year. Results from new core-based goniometric, capillary pressure, and rock mechanics studies, along with hydraulic fracture modeling and new fluid compositional modelling, have been fed into the assessment.

Chrysaor conducted this program, the work including structural, static and dynamic modeling, integrated probabilistic modeling, development concept evaluation, and economics.

The partners have focused on two volumetric scenarios indicating in place resources ranging from 200-510 MMboe, with 100-200 MMboe recoverable respectively.

Field development could require six to 14 horizontal fracture-stimulated production wells, with probable plateau production in all volumetric cases of 250 MMcf/d of gas and 30,000 b/d of oil (72,000 boe/d).

Tony O‟Reilly, Chief Executive of Providence said: “The completion of this technical work finally awakens the sleeping giant that is Spanish Point. This is not only a significant event for Providence and its partners, but for the whole Irish offshore."

“The last two years work has significantly de-risked Spanish Point and as such, it gives us every confidence in the successful future appraisal and development of this tested discovery. We have already identified the primary appraisal well location and have commenced well planning with a view to drilling in 2012.”

11/16/2010

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