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Providence announces completion of offshore well
By Clara Nwachukwu with agency reports
Published: Thursday, 17 Apr 2008

Providence Resources Plc, the Irish oil and gas exploration and development company, has announced the completion of drilling operations on its AJE Field, in Oil Mining Lease 113, offshore Nigeria.

The AJE-4 well, which was drilled in 1,000-feet water depth using the drill-ship Transocean Pathfinder, was designed to evaluate the lateral extent of the oil and gas bearing reservoirs.

The drillship is said to have been chartered by the consortium for a one-well slot at a day rate of $515,000.

The reservoirs had been successfully tested in the AJE-1 & 2 wells were located some two kilometres from the AJE-4 location.

Drilling operations were carried out by Yinka Folawiyo Petroleum Company Limited, the operator, in conjunction with Chevron Nigeria Deepwater H Limited, as technical adviser.

As forecast, the AJE- 4 well encountered cretaceous aged hydrocarbon bearing sections, specifically a gas condensate and oil bearing turonian reservoir with oil bearing cenomanian intervals.

A comprehensive logging and coring programme has been completed with the down-hole pressure measurements and hydrocarbon sampling.

The AJE-4 well is currently being suspended.

Other partners in the AJE project are PR Oil and Gas Nigeria Limited, Vitol Exploration Nigeria Limited and Energy Equity Resources Aje Limited.

The Chief Executive, Providence Resources, Mr. Tony O’Reilly, said, “Following on from our recently announced success in the US Gulf of Mexico, we are delighted with the results from the AJE-4 appraisal drilling programme.

“The AJE-4 well results are in line with our pre-drill expectations and have confirmed our long held view in relation to the prospectivity of OML113.”

He said the company planned to meet with its to discuss the well results in the context of the commercial potential of the AJE field.

He added, “Should the AJE field progress to development, it will have a significant and material impact on Providence’s proven reserves going forward.”

Providence Resources had earlier expressed delight with the results from the AJE-4 appraisal drilling programme, which it said, was in line with its pre-drill expectations.

It hoped to have front-end engineering and design for the prospect in place by the second quarter of 2009.