Providence Resources PLC (LON:PVR) says a new seismic programme will soon be carried out off Ireland’s west coast.
The Irish oil and gas company - alongside partners ENI, Repsol and Sosina – told investors that a 3D seismic exploration programme will launch in the Frontier Exploration Licence (FEL) 3/04 covering the Dunquin South area.
It says the objective is to gain a better understanding of the hydrocarbon potential with the undrilled exploration prospect, and it could potentially shed further light on the 2013 results from the Exxon-led Dunquin North exploration well – which encountered a residual oil column, confirmed petroleum system but was not sufficient to be deemed a crude ‘discovery’.
An exploration of the potential of the large Dunquin Ridge, a 700 square kilometre feature underlying both Dunquin North and South, is also an objective for seismic survey.
Dr John O’Sullivan, Providence Resources technical director, in a statement, said: “The revised ENI analysis of the 2013 44/23-1 Dunquin North well has highlighted material resource potential associated with the Dunquin South exploration prospect.
“This is evidenced by the significant commitment now being made by the JV Partners to underwrite and licence a block-wide 3D seismic survey over both the Dunquin North and Dunquin South carbonate build-ups.
“We hope that the results of this survey will improve our understanding of the acreage and lead to further drilling in the future."
Providence has a 26.8% stake in Dunquin South - while ENI owns 36.9%, Repsol has 33.5%, and Sosina holds 2.68%.
New exploration well this summer
Elsewhere, off Ireland’s west coast, Providence is due to drill a new well this summer.
Last month, the company agreed a new partnership with Cairn Energy PLC (LON:CNE) which will pay 45% of the costs to earn a 30% stake in the upcoming Druid well.
Druid, a 3.1bn barrels exploration target, is due to be drilled in June by Stena International’s IceMAX drill-ship.
There is also an option for a second well, and Cairn would pay 40% of that well’s cost (also up to US$42mln) if it goes ahead – at that point it will also earn the right to take over operatorship of the project.
Cairn and Providence are already partners offshore Ireland, in the Spanish Point appraisal project where the next programme is slated for next year.
Tony O’Reilly, Providence chief executive, said he was “extremely pleased” with bringing in a world class partner like Cairn.