'Disappointing' results for Providence at Drombeg
Irish based oil and gas exploration company Providence Resources has issued an operational update confirming that 53/6-1 (pre-drill designation 53/6-A) well – the Drombeg Prospect, contains a water-bearing reservoir interval at the well location.
Frontier Exploration License 2/14, which is located 220 kilometres off the south-west coast of Ireland, is operated by Providence on behalf of its partners Capricorn Ireland Limited (a wholly owned subsidiary of Cairn Energy PLC,) and Sosina Exploration Limited, collectively referred to as the "JV Partners".
The possible presence of bitumen (a semi solid form of petroleum) was reported in drill cuttings within the Drombeg reservoir interval, which may indicate that it received an oil charge which was not retained at this location.
However, in a statement today Providence said that further studies would be required in order to confirm this interpretation and its implications for the wider prospectivity within FEL 2/14.
As per the pre-agreed and consented programme, the well is currently being plugged and abandoned after which the drill ship the Stena IceMAX will be demobilised from Irish waters.
Commenting on the news, Tony O'Reilly, CEO of Providence said the results were "disappointing",
"We will now assess these well data in order to understand what implications they have for prospectivity within the licence including in the underlying pre-Cretaceous Diablo Prospect together with other anomalies within FEL 2/14," Mr O’Reilly said.
He went on to say that through the company’s pre-drill commercial transactions with Cairn and TOTAL, the company’s financial exposure to the well was "significantly reduced."
"We remain well funded for our forward drilling operations offshore Ireland, with Barryroe being planned as our next well in this programme," Mr O’ Reilly said.
In August shares in Providence fell after it announced that a well drilled at its Druid prospect had shown it was filled with water.