Jobs to flow from oil and gas

AN Irish oil and gas exploration company is planning to start drilling an oil and gas well 200km off the West Clare coast, which has an estimated value of up to US$2 billion over its lifetime, at current prices.

The oil and gas well production would, according to Providence Resources Plc, lead to a significant increase in commercial traffic in Shannon Airport, which would be used as a base for helicopters and the transport of equipment to and from the site. It would also create additional employment in service and support companies
It is understood that the gas and oil would be brought ashore through a pipeline in the Shannon Estuary.
Providence Resources Plc has formally notified the Department of the Communications, Energy and Natural Resources that it has decided to enter the second phase of its two frontier exploration licences, which contains the Spanish Point gas condensate and Burren oil discoveries.
This phase carries a commitment to start drilling the discovery, which was located in 1981, which has a total projected volume of 200 million barrels of oil during its lifetime.
Senergy, a leading Aberdeen-headquartered energy services company, has carried out an in-depth report on the resource potential of the Spanish Point and Burren discoveries.
The subsurface evaluation of its wells off the west coast has been based on 2D seismic information, together with the integration of the mapping into the overall Spanish Point regional model. This work has revealed the presence of a number of new prospective features.
The company has agreed to acquire a new 200 square kilometre 3D survey over its wells and integrate this information with the recent 2009 Spanish Point 3D survey. It is planned that this survey will be acquired during the summer of 2011.
The announcement is seen as a major boost to the Clare and Mid-West economy, which would benefit from access to gas once connected with the existing Bord Gais network. Oil would also have to be transported to the Whitegate refinery in Cork.
A company spokesman predicted there would be a significant increase in commercial traffic in Shannon Airport, noting that Cork Airport has benefited considerably from the drilling that is taking place off the south-west coast in the Celtic Sea.
A wide range of ancillary support services would have to be readily available once drilling starts, providing a much-needed jobs boost for the Clare economy.
Commenting on the announcement, John O’Sullivan, technical director of Providence, said following the hugely positive impact the 3D seismic survey has had on their understanding of the Spanish Point discovery, the partners have now taken the decision to move into the second phase of the licence by providing a well commitment.
“Our mapping and the associated reports have highlighted additional resource potential around Spanish Point, both in known discoveries such as Burren, as well as in the newly identified exploration targets,” he said.
Providence Resources Plc is an independent oil and gas exploration company listed on the AIM market in London and on Dublin’s ESM market. Its active oil and gas portfolio includes interests in Ireland (offshore), the United Kingdom (onshore and offshore), the United States (offshore) and West Africa (offshore Nigeria).
On February 16 last, Providence announced the placing of 16.096 million new ordinary shares to raise US$65.7 million in support of its planned multi-year, multi-well drilling campaign to cover the six basins in which the company has licence interests offshore in Ireland.