Spanish Point

In August 2008 Providence Resources P.l.c., the AIM and IEX listed production and development company, together with the partner Sosina Exploration Ltd (“Sosina”), announced it had signed a staged farm-out agreement with Chrysaor Holdings Limited (“Chrysaor”), on its Spanish Point discovery, in the Porcupine Basin, off the west coast of Ireland.

The terms of the farm-out agreement provide for Chrysaor to conduct a significant appraisal work programme on the Spanish Point discovery in return for a minimum 30% interest in Spanish Point. Chrysaor then has the option to earn up to a maximum 70% interest in the event that two wells are subsequently drilled on Spanish Point.

A 3D seismic program earning Chrysaor its initial 30% interest was shot in summer 2009. The final processed 3D seismic data provided excellent resolution of the Upper Jurassic hydrocarbon bearing reservoir intervals and allowed for the direct mapping of some of these zones across the Spanish Point structure. Detailed studies suggest the P50 recoverable resources are economic. Additional seismic was shot in the Spanish Point licence area in Q3 2011 which is currently undergoing processing.

In March 2011, Chrysaor elected to drill an appraisal well thereby bringing its equity in the Licence to 60%.