Providence sizing up west coast drilling campaigns

Providence owns 40% of Avalon, which is located in the Porcupine Basin off the south-west coast, with French oil major Total acting as operator with a 50% holding.

London-based explorer Sosina is a junior partner with a 10% stake.

Total will cover 60% of drilling costs. The consortium of owners have acquired new seismic data covering Avalon and are due to recieve the full results next year.

The last assessment of the Avalon prospect - back in mid-2017 - placed a 12 billion barrel resource estimate on the asset, but that figure could be eclipsed if the new data proves positive.

"The commitment of the joint-venture partners to licence these data attest to the significant resource potential at Avalon," said Providence's technical director John O'Sullivan.

"These new 3D seismic data should greatly enhance...[Avalon's] resource potential as well as possible exploration well locations," he said.

He said the data should also reduce the time it takes to reach a timing decision over drilling.

Providence is set for a busy operating period over the coming three years; starting with a long-awaited commencement of drilling at its flagship Barryroe field in the Celtic Sea in the third quarter of this year.

A drilling campaign in the Porcupine Basin in the next couple of months, by ExxonMobil and China's Nexen, could also de-risk Providence's nearby Diablo prospect.

Meanwhile, a site survey of Providence's Dunquin South prospect, also off the west coast and due in the summer, could tee-up a 2020 drill date for that project.

The company's offshore west coast Newgrange prospect could also see drilling next year pending a successful outcome to discussions over the introduction of a development partner.