Irish oil and gas exploration company Providence Resources has been granted an extension of the first phase of Frontier Exploration Licence (FEL) 6/14 off Ireland, which contains the Newgrange prospect.
The license, operated by Providence with Sosina Exploration as its partner, is situated in 1,000 meters of water some 260 kilometers off the south-west coast of Ireland.
Providence said on Tuesday that the partners were granted an extension to the term of the first phase of FEL 6/14 until March 31, 2019, by Ireland’s Minister of State for Communications, Climate Action, and Environment.
The company also said that the extension would allow for the acquisition of a new high-resolution 2D seismic survey over the crest of the Newgrange prospect while also providing data suitable for input to an application for the permitting of an offshore exploration well.
The 2D seismic data and well site survey acquisition is planned to begin during the summer of 2018.
The company added that the commercial discussions about a potential farm-out of equity in the license were continuing. Providence is also in discussions with other nearby operators as to potential synergies that the short duration Newgrange well may share with other potential nearby future drilling operations.
John O’Sullivan, technical director of Providence, said: “We are very pleased to be granted this extension to the Newgrange license, 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.
“These data will also facilitate commencement of the detailed planning process for the Newgrange exploration well. As the Newgrange well duration is expected to be extremely short, given that the primary Cretaceous reservoir target is just circa 500 meters 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.”