Providence Resources PLC (LON:PVR) has had encouraging reports concerning frontier exploration licence (FEL) 6/14 situated some 260 kilometres off the south-west coast of Ireland.
FEL 6/14 contains the Newgrange prospect, where a site survey was conducted in July, followed up by the acquisition of seabed samples that have now been independently analysed for the presence of hydrocarbons.
READ: Providence Resources buoyed by Newgrange survey
Geochemical analysis of seabed samples acquired during this programme has confirmed the presence of both biogenic and thermogenic hydrocarbon sourcing signatures indicating that 262-seabed pockmarks identified in the site survey are possibly related to hydrocarbon migration.
In addition, high-resolution sub-bottom two-dimensional (2D) data analysis has revealed buried pockmark fields up to around 100 metres beneath the seabed possibly indicating active hydrocarbon migration over a prolonged period.
Providence said discussions with third parties that are interested in taking a stake in the field are continuing. Depending on the outcome of these discussions, drilling could take place in either 2019 or 2020 (subject to regulatory consent). The latest internal well cost estimate is less than US$15 million, exclusive of mobilisation.
"The quantum of current seabed pockmarks, together with the positive geochemical analyses, support the presence of potential active source rocks in the area that could be charging Newgrange with either liquids or gas,” asserted Dr John O’Sullivan, the technical director at Providence Resources.
“In addition, the presence and extent of the buried pockmark fields attest to the longevity of these potential sourcing systems, confirming that they are not just a present-day phenomenon. Whilst Newgrange is frontier in nature, the material prospective resources and low drilling cost continues to attract industry interest and we believe that these new technical data should serve to further bolster that enthusiasm," he added.