Providence Resources Files Technical Report On Avalon Prospect

LONDON (Alliance News) - Providence Resources PLC on Monday said it has provided the ...

Alliance News 17 July, 2017 | 1:57PM
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LONDON (Alliance News) - Providence Resources PLC on Monday said it has provided the Petroleum

Affairs Division of the Department of Communications, Climate Action & Environment of Ireland with its end of year technical report on licensing option 16/27.

The technical report focused on the hydrocarbon potential of the Paleocene Avalon prospect.

Following the recent farm-in on the asset by French giant Total SA, which is still subject to regulatory approval, Providence will own 40% of the licence next to Total's 50% and Sosina Exploration Ltd's 10%. Total will take over as operator from Providence once the farm-in is complete.

Providence said a large scale calibrated petroleum systems model included in the licence area supports the potential of a working petroleum system and demonstrates that the Avalon prospect could hold a total hydrocarbon resource equal to 12.00 billion barrels of oil.

"Whilst petroleum systems modelling in emerging frontier basins have inherently high degrees of uncertainty, the results of this study are directionally very positive for the potential charging of the Avalon prospect," said the company.

"Further positive outputs from the petroleum systems model indicate that the risk of oil biodegradation in the Avalon prospect is low to moderate based on the modelled temporal variations in reservoir temperature. In addition, top seal integrity for the Avalon prospect was also assessed using inputs from both the petroleum systems model and a parallel basin-wide geo-mechanical modelling study," Providence added.

Providence said recent work means there is a "very low likelihood" of a mechanically breached seal at Avalon based on modelled pore pressures.

"Whilst the nearby 53/6-A well programme is currently assessing the similar-aged Paleocene 'Druid' stratigraphic prospect, as well as the deeper Lower Cretaceous 'Drombeg' prospect, Avalon is somewhat differentiated insofar as it demonstrates a potentially different trapping mechanism with structural closure mapped in the proximal sediment transport direction. The proximity of Avalon to the deeper breached 'Dunquin North' oil accumulation is also a potential positive in terms of hydrocarbon sourcing," said Providence Technical Director John O'Sullivan.

Providence shares were down 3.8% on Monday at 15.99 pence.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Providence Resources PLC 5.25 GBX -8.70 -
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