Providence Resources yesterday said it had signed an “incentivised” technical deal with oil services giant Schlumberger to help it develop its interests in the Southern Porcupine and Goban Spur areas off the south-west coast.
“Schlumberger will underpin Providence’s technical team with specific ‘state of the art’ technology access,” the company said in a statement to the stock market.
It also plans that Schlumberger will help it pull together key geological data as it prepares to farm-out the development of the Drombeg, Druid and Newgrange prospects, a process it expects to get underway early next year.
Providence shares which were trading yesterday at 18c have fallen from 184c in the past year.
Providence said that the link up with Schlumberger will however lessen the risks in bringing on its Dunquin South, Drombeg, Druid and Newgrange exploration areas, while “Schlumberger will also support Providence in facilitating farm-out data-room processes for the Drombeg, Druid and Newgrange prospects, which will commence during Q1 2016.”
John O’Sullivan, technical director at Providence, said the technology tie-up with Schlumberger will help the company eventually to attract a partner to develop the Porcupine fields.
“Since our initial entry into the southern Porcupine and Goban Spur Basins in 2004, we have witnessed a significant increase in interest in these basins,” he said.
“Having acquired modern high quality 2D and 3D seismic data, we now plan to capitalise on our unique proprietary database by using Schlumberger’s best in class multi-disciplinary technologies in order to leverage in a deep-water operator.”
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