Providence has entered into a new farm-in agreement for the AJE Field, located in OML113, offshore Nigeria. This new partnership is composed of Yinka Folawiyo Petroleum Company Limited ("YFP"), the Operator, Chevron Nigeria Limited ("Chevron"), Vitol Exploration Nigeria Limited ("Vitol"), Energy Equity Resources Aje Limited ("EER") and P.R. Oil and Gas Nigeria Limited "(Providence").

In addition, an agreement has been reached between all the participants to move forward with the drilling of AJE 4 well. This will test for hydrocarbon-bearing reservoir intervals, apparent in the previous 3 AJE wells, as well as testing deeper potential reservoir zones. It is envisaged that drilling will take place early in quarter 1 of 2008.

Commenting on the announcement, Mr Tony O'Reilly, Chief Executive said, "We are delighted to be entering into this new deal along side significant players Chevron, Vitol, EER and the Operator in OML 113, YFP. Following the termination of the previous AJE commercial agreement in April 2007, YFP entered into confidential negotiations with prospective partners, including Providence.

We are pleased that after many months of negotiations, this new farm-in group has been formed and will now move forward with the AJE 4 appraisal well programme that will assess the reserve potential of the AJE Field."

Tags: Providence