Source: Providence Resources
Providence Resources agreed to farm out a 40% equity interest in Licensing Option 10/1 to Nautical Petroleum. Licensing Option 10/1 contains the Baltimore heavy oil discovery situated some 30 kilometers offshore Ireland in the North Celtic Sea Basin in 100 meters of water.
Discovered in 1992 by well 48/19-2, this 11-degree API heavy oil accumulation is estimated to have an in place resource potential of up to 300 million barrels of oil. The Baltimore well encountered a 90 m gross hydrocarbon bearing section at c. 900m TVDSS in sands of Lower Cretaceous age which are similar to those producing at the nearby Kinsale Head field.
In return for the 40% equity stake, Nautical will fund and carry out a focused work program on the development feasibility of the Baltimore discovery. Providence will retain a 60% equity interest, operated through its special purpose vehicle, EXOLA Limited. Nautical is currently involved in a number of similar heavy oil field developments in the UK North Sea including the Kraken discovery, which they operate, and Mariner, which is operated by Statoil. The farm-out transaction is subject to Irish governmental approval.