Extension to Apollo Licensing Option 05/3

21 September 2007

 

ST GEORGE'S CHANNEL UPDATE

 

Extension to Apollo Licensing Option 05/3

 

 

 

Providence Resources Plc, the AIM (London) and IEX (Dublin) listed oil & gas exploration and production company, announces that it has been granted an extension to the term of its Licensing Option 05/3 in the St George's Channel, offshore Ireland by the Minister of the Minister of Communications, Energy and Natural Resources.

Licensing Option 05/3, where Providence currently holds a 100% working interest, contains the large Apollo oil exploration prospect. The Apollo prospect is a large Jurassic tilted fault-block located in the southwest part of the St. George's Channel Basin and is c. 60 km from the recent Hook Head appraisal well, which is currently the subject of an ongoing testing programme. The Licensing Option extension goes to March 31st, 2008.

 

Tony O'Reilly Jnr., Chief Executive

 

Rory Godson/Elizabeth Rous

 

Pauline McAlester

Providence Resources Plc is an independent oil and gas exploration company listed on the AIM market in London and on Dublin's IEX market. The Company was founded in 1997, but with roots going back to 1981 when it predecessor company, Atlantic Resources Plc was formed by a group of investors led by Sir Anthony O'Reilly.

Providence's active oil and gas portfolio includes interests in Ireland (offshore), the United Kingdom (onshore and offshore), the United States (offshore) and West Africa (offshore Nigeria). Providence's portfolio is balanced between production, appraisal and exploration assets, as well as being diversified geographically.

Comprehensive information on Providence and its oil and gas portfolio, including all press releases, annual reports and interim reports are available from Providence's website at www.providenceresources.com

 

The Apollo prospect has been mapped to extend over a 40 sq km area using good quality 2D seismic data (acquired in 1993). The prospect lies in c. 80 metres of water and is 30 km off the south coast of Ireland.

Prospective horizons within the Apollo structure include sands of Lower Jurassic age, which have been encountered in nearby wells with oil and gas shows. Additional potential has also been identified in Upper Jurassic sands, which have been successfully flow tested at the nearby Providence-operated discoveries at Helvick (c.10,000 BOPD) and Dunmore (c. 2,000 BOPD) as well as the Marathon-operated Dragon Field (20 MMSCFGD).

Third party published regional data suggests that the Lower Jurassic source rocks in the area have expelled both oil and gas. Total prospective resources could be up to 300 MMBO REC in the primary Lower Jurassic reservoirs based on the most recent in-house mapping, with further additional upside potential associated with the Upper Jurassic sequences.