Providence Resources Plc has successfully secured a semi-submersible rig for its drilling programme in the Celtic Sea during the summer of 2008.

This follows on from Providence's announcement on October 10th 2007, confirming the presence of a significant oil accumulation at the Hook Head structure with the drilling of the 50/11-3 appraisal well.

Under the terms of the deal agreed, Providence, on behalf of the Celtic Sea partners, has hired the Transocean semi-submersible rig, the GSF ARCTIC 2. The contract consists of two firm wells plus an option on a third well. The primary objective of the drilling programme will be to further appraise the Hook Head oil accumulation. Depending on the outcome of this appraisal programme, the partners may then also elect to drill a further appraisal well on the adjacent Dunmore East 50/6-1 oil discovery, located some 20 kilometres north of the Hook Head accumulation.

Details on the precise drilling locations and the sequencing of drilling will be confirmed over the coming months.

Commenting on the announcement, Mr Tony O'Reilly Jnr., Chief Executive said, "When we announced the successful discovery at Hook Head in October 2007, we confirmed that our immediate intention would be to try to secure a rig for future drilling. In a very tight rig market, I am therefore very pleased to report that we have been able to secure and negotiate a flexible contract with Transocean for our upcoming summer drilling in the Celtic Sea."

"The importance of this drilling programme cannot be overstated. With further appraisal success, it should not only allow us to continue to build on the discovery of the Hook Head oil accumulation but also allow us to advance the development potential of the many other undeveloped discoveries in the Celtic Sea Region."

Tags: Providence Resources Plc