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Providence Resources: Newgrange Prospect update

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Oilfield Technology,

FEL (Frontier Exploration Licence) 6/14 is operated by Providence Resources P.l.c., on behalf of its partner Sosina Exploration Limited (20%), collectively referred to as the Newgrange Partners, and is situated in c. 1000 m water depth being c. 260 km off the south-west coast of Ireland.

Initial Evaluation

In July 2018, the Company announced that the Newgrange Partners had successfully completed a site survey which comprised the acquisition of data suitable for input to an application for the permitting of a Newgrange exploration well using Gardline’s M/V Kommandor vessel. The initial analysis of the seabed data over the proposed Newgrange well location confirmed the presence of more than 100 seabed pockmark features, which was interpreted by the Newgrange Partners to be the result of fluid seepage from the underlying geology. As part of the data acquisition programme, the Company acquired seabed samples which have now been independently analysed for hydrocarbon presence.

Updated Evaluation

Third party detailed evaluation of these data has now confirmed the presence of 262 present-day seabed pockmarks. Geochemical analysis of seabed samples acquired during this programme has confirmed the presence of both biogenic and thermogenic hydrocarbon sourcing signatures indicating the pockmarks are possibly related to hydrocarbon migration. In addition, high resolution sub-bottom 2D data have revealed buried pockmark fields up to c. 100 m beneath the seabed possibly indicating active hydrocarbon migration over a prolonged period.

Forward Operations

Discussions with potential third party farminees are continuing and depending on the outcome of these discussions, drilling could take place in either 2019 or 2020 (subject to regulatory consent). The latest internal well cost estimate is less than US$15 million, exclusive of mobilisation.

Commenting today, Dr John O’Sullivan, Technical Director of Providence Resources said:

“The quantum of current seabed pockmarks, together with the positive geochemical analyses, support the presence of potential active source rocks in the area that could be charging Newgrange with either liquids or gas. In addition, the presence and extent of the buried pockmark fields attest to the longevity of these potential sourcing systems, confirming that they are not just a present-day phenomenon. Whilst Newgrange is frontier in nature, the material prospective resources and low drilling cost continues to attract industry interest and we believe that these new technical data should serve to further bolster that enthusiasm.”

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