Providence licence is extended by one year

PROVIDENCE Resources has been granted a year’s extension to its Frontier Exploration licence.

The first phase of FEL 6/14, which contains the Newgrange prospect, located roughly 260 km off the south-west coast of Ireland, has been extended to March 31 next year.

The licence is operated by Providence on behalf of its partner Sosina Exploration which has a 20pc share in the project.

The extension will 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.

Discussions in relation to a potential farm-out of equity in the licence are continuing, the company said yesterday.

Providence is also in discussions with nearby operators in the area with a view to rig-share operations given the expected short duration of work at the Newgrange 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 Providence technical director Dr John O’Sullivan.

“These data will also facilitate commencement of the detailed planning process for the Newgrange exploration well.”

Last month Providence announced that it has signed a farm-out agreement with Chinese company APEC for the Standard Exploration Licence 1/11 that contains the potentially huge Barryroe offshore field.