Providence Resources P.l.c., („Providence‟) the Irish oil and gas exploration and production company, whose shares are listed in London (AIM) and Dublin (ESM), is pleased to confirm that it has been offered a petroleum exploration licence over Rathlin Island, Northern Ireland.
The licence has been offered by Northern Ireland‟s Department of Enterprise, Trade and Investment in response to a recent application made by Providence. The initial licence term is for five years with a decision on a well commitment required within three years. Providence has committed to carry out a number of technical studies of the subsurface geology during the first three years to determine the petroleum potential and inform the decision on the well commitment. Providence will operate the licence with a 100% equity interest.
Tony O‟Reilly, Chief Executive of Providence, said:
“We are delighted to be offered our first exploration licence in Northern Ireland. Providence has a clear corporate focus to evaluate the hydrocarbon potential of the island of Ireland and this new licence over Rathlin complements our substantial Atlantic Margin and Irish Sea acreage portfolio. As with all of our operated activities, Providence will adhere to the highest standards of environmental excellence and consult locally should we progress this licence into the drilling phase.”
John O‟Sullivan, Technical Director of Providence, added:
“The oil exploration potential of the Rathlin Basin was highlighted by the onshore 2008 Ballinlea-1 well, which encountered hydrocarbon shows and recovered some oil during testing. We interpret this well to have been drilled on the margin of the basin which extends and deepens towards Rathlin. The potential under Rathlin Island itself is of interest as this location is interpreted to directly overlie the most mature and potentially most productive part of the basin. “
Source: Providence, October 26, 2010;