UK: Providence & Star Energy to Slay the Dragon

Providence Resources has announced that it has been offered a seaward exploration licence for Block 103/1, containing the Dragon gas discovery, in the St. George's Channel Basin, offshore from the coast of Wales.

The licence is offered bu the UK Department of Energy and Climate Change and was granted following an out of round application by Providence's wholly owned subsidiary, PR Singleton, and Star Energy Oil & Gas. Each company will take a 50 per cent stake in the licence, with PR Singleton acting as operator.

The Dragon gas discovery is located in the St. George's Channel Basin, offshore from both the coast of Wales and South-west Ireland at around 100 metres water depth. The Dragon discovery has previously tested positively for gas, having been drilled in 1994. The drilled well, the 103/1-1 discovery well, drilled by Marathon Oil, flowed at approximately 22 Million Standard Feet of Gas per Day (MMSCFGD) and 120 Barrels of Oil Per Day (BOPD). Providence says that recent reassessment of the existing 3D seismic data has indicated that the discovery may contain up to 300 Billion Standard Cubic Feet of gas initially in place.

CEO of Providence, Tony O'Reilly, said that the award would further the company's interests in Ireland, as well as in the UK.

"We are very pleased to have been offered this UK block, which is adjacent to Irish licence SEL 1/07 which Providence operates 100 per cent," he said. "The Dragon gas discovery is mapped to lie within both the UK and Irish sectors and the award of this new block will allow Providence to move forward with the drilling of its planned appraisal well."