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Appraisal scheduled for Spanish Point
Posted 20.07.2012 10:00:49 av John Bradbury
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Work towards deepwater appraisal drilling on the Spanish Point gas and condensate discovery offshore Ireland has been approved.

Agreement has been reached by the prospect partners to begin planning for an appraisal well on Spanish Point next year in the Porcupine Basin off the west coasts of Ireland.

Chrysaor is also to take over from Providence Resources as the prospect operator.

Spanish Point lies in Irish Frontier Exploration Licence FEL 2/04, and it is located  200 kilometres (125 miles) off the west coast of Ireland. The same licence also contains the Lower Cretaceous Burren oil discovery, in the Main Porcupine Basin, in a water depth of 400 metres (1,312 feet).

After a recent partner group meeting, Chrysaor has agreed to take over as operator on Spanish Point  and a budget has been agreed which includes provision for well planning and drilling up to two wells on Spanish point next year.

“Currently, the plan is to spud the initial appraisal well in Q3 2013 subject to rig availability and governmental approvals,” Providence Resources stated today.

Also the partners, which includes Sosina Exploration, have agreed to transferring  operatorship of FEL 2/04, FEL 4/08 and Licensing Option 11/2 from Providence to Chrysaor, subject to Irish government approval.

Under an August 2008 farm out deal with Providence and Sosina, Chrysaor agreed to a an appraisal programme at Spanish Point including drilling two wells, in exchange for 30% equity in the prospect, with an option to increase this up to 70% if the two wells are drilled.

A initial 3D seismic survey was carried out over Spanish Point in 2009, which provided excellent resolution of the Upper Jurassic hydrocarbon-bearing intervals on the prospect, according to Chrysaor, which allowed direct mapping of some of these zones.

Further seismic data was acquired over the FEL 2/04 licence area in the third quarter last year. Chrysaor has already said that the seismic indicates Spanish Point is commercial. And Providence indicates the find could contain a significant resource with up to 200 million barrels of oil equivalent reserves recoverable.

In March last year Chrysaor elected to drill one appraisal well, increasing its equity in the licence FEL 2/04 and adjacent licence FEL 4/08 to 60%. Providence and Sosina retained 32% and 8%

“Next year should prove to be pivotal in assessing the exploration and development potential of hydrocarbons in the Porcupine Basin, with drilling now planned at Spanish Point, as well as at the Dunquin exploration prospect to the south,” commented Providence chief executive Tony O'Reilly.

Separately Chrysaor is also working on the Phoenix gas discovery in UK licence P1578 covering block 13/22b. The company says it is curently working on field development options for the find, to bring gas to market ijn 2014.
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