Providence Resources has issued an update on Frontier Exploration Licence (FEL) 2/14, offshore Ireland. The licence is operated by Providence Resources (80%) on behalf of its partner Sosina Exploration (Sosina) (20%). FEL 2/14 contains the Paleocene "Druid" and the Lower Cretaceous "Drombeg" exploration prospects. An exploration well is currently being planned to drill the "Druid" prospect in June 2017, subject to regulatory consents. Following a recent public procurement process, Providence and Sosina have appointed Senergy Wells Limited ("Senergy"), a wholly owned subsidiary of Lloyds Register ("LR"), to provide integrated well management services for the upcoming planned 2017 Druid drilling programme. Under the terms of the contract, Senergy will provide management and well engineering services for the design and construction of the Druid deep-water well under the LR Global Management System - Well Project DeliveryProcess, reflecting the best of industry practice and standards to provide safe, effective and efficient well operations. Based on updated market rates and definition of the preliminary well basis of design obtained through the well management tender process, the latest gross (100%) well cost for the Druid exploration well is now estimated at c. $35 million, with the final cost subject inter alia to the relevant service contracts being put in place and approved well design. This updated well cost estimate of $35 million compares to the previous estimate of $46 million, which was based off provisional internally generated estimates.
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