Sunday 23 April 2017

Providence Resources signs contract for IceMax drill rig

Providence Resources said it has signed the contract for the Stena IceMax
Providence Resources said it has signed the contract for the Stena IceMax
John Mulligan

John Mulligan

Exploration minnow Providence Resources has signed a contract for a deep-water drilling ship that will sink one well off the south-west coast of Ireland next summer.

Providence Resources said it has signed the contract for the Stena IceMax, a harsh environment, deepwater drilling unit. It’s designed to operate in water depths of up to 3km.

The contract is for one firm well, and includes an option for an additional well.

The operational rig rate is $185,000 a day.

The well will be drilled at the Frontier Exploration Licence 2/14 site (FEL 2/14), which lies in about 2.25km of water in the southern Porcupine Basin. It’s located about 220km off the south-west coast.

The licence is operated by Providence, which owns 80pc, on behalf of its partner, Sosina, which owns the remainder.

The licence area contains the so-called Druid and Drombeg exploration prospects.

“Our previous exploration collaboration project with Schlumberger highlighted the significant hydrocarbon potential of FEL 2/14 which we will now be evaluating using the high-specification Stena IceMax drill-ship,” said Providence Resources chief executive Tony O’Reilly Jnr.

“The signing of this rig contract is a major milestone in the project plan to enable the drilling of this high impact exploration well during summer 2017,” he added.

Druid in particular is a relatively shallow Palaeocene target consisting of two fans with very large “in-place” target potential (over 3bn barrels), according to Davy Stockbrokers.

The Lower Cretaceous Drombeg target is beneath the Druid fans but could be accessed by deepening the well, the broker added in a note.

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