The Irish authorities have now extended the first phase of the licence out to March 2019 to allow more time for the acquisition of new 3D seismic data over the crest of the Newgrange target. It is anticipated that this desktop work will the company to advance the planning of an exploration well.
"We are very pleased to be granted this extension to the Newgrange licence, which will allow for the acquisition of a new high resolution 2D seismic survey together with seabed data which may allow us to further de-risk the Newgrange prospect,” said Dr John O’Sullivan, Providence technical director.
“These data will also facilitate commencement of the detailed planning process for the Newgrange exploration well.”
Providence last week struck a long anticipated partnership deal, bringing a Chinese company into the Barryroe project and securing funding to advance the project towards production.
Providence added today that it continues to progress commercial negotiations for Newgrange and it is also talking with neighbouring operators given the potential synergies for an expedited drill programme that could be tacked onto anticipated nearby drill programmes.
Newgrange is a shallower target compared with other Atlantic prospects, at a depth of around 500 metres, and as a result it can be drilled more quickly and a well could be drilled for a comparatively low cost.
O’Sullivan added: “As the Newgrange well duration is expected to be extremely short, given that the primary Cretaceous reservoir target is just c. 500 metres below the seabed, we are talking to other Operators regarding potential rig-share opportunities.
“In addition, the Newgrange partners are in dialogue with a number of third parties regarding a potential farm-out of equity in this low cost high potential exploration project."