News

June 16, 2009

Providence Resources Subsidiary EIRGAS Eyes Strategic Kinsale Head Gas Storage Facility

Last summer Providence Resources confirmed its interest in building a natural gas storage business in Ireland when it initiated a project, named ULYSSES, to identify the gas storage and CO2 sequestration potential of underground saline reservoirs offshore Dublin. Now the AIM-quoted company has taken a significant step forward, both in terms of its immediate production and longer term gas storage ambitions, by securing an option to acquire 40 per cent of the Kinsale Head Area in the Celtic Sea, where depleting gas fields are ripe for conversion to a strategic gas storage facility.

The Kinsale Head area comprises the Kinsale Head, South West Kinsale and the Ballycotton gas fields, as well as an 86.5 per cent interest in the producing Seven Heads gas field.  The fields produced around 30 million cubic feet of gas per day, or 5,000 barrels of oil equivalent per day, during the first quarter of 2009 and carry a net risked resource of 62 bcf. Production is expected to continue to at least 2015 and could be extended by the tie-in of satellite gas fields.

These...