NEW FARM-OUT DEAL AGREED IN CELTIC SEA
23 February 2007
Providence Resources P.l.c.
NEW FARM-OUT DEAL AGREED IN CELTIC SEA
Providence, the AIM (London) and IEX (Dublin) listed oil & gas
exploration and production company, today announced that it has
agreed a further farm-out agreement on its Celtic Sea area interests,
held under Standard Exploration Licence 2/07, off the south coast of
Ireland. This farm-out is subject to approval from the Irish Minister
for Communications, Marine and Natural Resources.
Providence has agreed to farm-out a further 15% of Celtic Sea
Standard Exploration Licence 2/07 to Forest Gate Resources Inc, a
Canadian Exploration company listed on the Toronto Stock Exchange .
This is the first time that Forest Gate Resources Inc has invested in
offshore Ireland.
Subject to Irish Government approval of this farm-out, the equity
stake of Providence will reduce to 40% in Licence 2/07 with the
remaining equity percentages being 15% for Forest Gate Resources Inc,
15% for Challenger Minerals (Celtic Sea) Limited, (a subsidiary of
GlobalSantaFe Corporation), 15% for Dyas BV, 10% for Atlantic
Petroleum (Ireland) Limited, and 5% for Midmar Energy Limited.
The Celtic Sea Licence 2/07 contains the following:
* "Ardmore" gas discovery
* "Helvick" oil field
* "Hook Head" oil & gas discovery
* "Dunmore" oil discovery
Commenting on the farm-out agreements, Tony O'Reilly Jnr., Chief
Executive of Providence Resources P.l.c., said:
"We are delighted Forest Gate Resources has joined us in our Celtic
Sea programme. Having now fully assembled our licence partnership, we
can now focus on finalising our plans for 2007. We anticipate being
in a position to announce additional details on the 2007 drilling
programme within the next few months".
Contacts:
Providence Resources P.l.c.
Tony O'Reilly Jnr., Chief Executive Tel: + 353 (1) 219 4074
Powerscourt Media
Victoria Brough Tel: + 44 (0) 207 236 5622
Murray Consultants
Pauline McAlester Tel: + 353 (1) 498 0300
Notes to Editors
About Providence
Providence Resources P.l.c. is an independent oil and gas exploration
company listed on AIM (London) and IEX (Dublin) markets. 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 UK (onshore and offshore), the Gulf of Mexico
(USA) and West Africa (offshore Nigeria). Providence's portfolio is
balanced between production, appraisal and exploration assets, as
well as being diversified geographically.
Recent key corporate announcements include:
* Celtic Sea Farm-out to DYAS and Atlantic Petroleum (announced
Feb 7th, 2007)
* Grant of Standard Exploration Licence 1/07 and 2/07 offshore
Ireland (announced Feb 6th, 2007)
* Award of Licence in UK 24th Seaward Round (announced Feb 2nd,
2007)
* Providence makes oil and gas discovery in Gulf of Mexico
(announced Jan 25th, 2007)
* Award of Goban Spur Licencing Option with ExxonMobil & Sosina
(announced Nov 1st 2006)
* Secures Rig Slot for 2007 (announced Sept. 25th, 2006);
* 20% Farm-out Deal agreed with CMI on Celtic Sea Licences
(announced Sept 5th, 2006);
* Completion of Dunquin Seismic (announced Aug. 8th, 2006);
* Increased production at its Singleton oilfield (announced
March 7th, 2006);
* Dunquin Farm-out to ExxonMobil (announced on Feb 13th, 2006);
and
* ¤50 million Revolving Credit Finance Facility with Macquarie
(announced on Feb 2nd, 2006);
Comprehensive information on Providence and its oil and gas
portfolio, including its 2005 AIM Admission document, 2005 Annual
Report, Interim Report 2005 and recent press releases are all
available from Providence's website at
www.providenceresources.com
Celtic Sea Licence No 2/07
Licence No 2/07 refers to the following block numbers: Part blocks
49/8, 49/9, 49/13, 49/14 ('Helvick field and Helvick area'); Part
blocks 49/13, 49/14, 49/18, 49/19 ('Ardmore'); Part block 50/11,12
('Hook Head'); Part blocks 50/6, 50/7 ('Dunmore');
About Forest Gate Resources Inc
Forest Gate is a publicly traded mineral exploration company with
diamond properties in Canada. The company's shares trade under the
symbol FGT on the TSX Venture Exchange. Forest Gate continues to own
diamond properties in Saskatchewan and Quebec. However, the company
plans to focus on oil and gas exploration both internationally and
domestically.
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