Providence Resources has commenced new drilling operations on the L99/02-SWD development well at its Singleton Field in the Weald Basin, onshore United Kingdom. The new well will be drilled to a total measured depth of c. 14,000 feet using the Larchford Drillmaster 1 drilling rig, with drilling operations expected to take up to 45 days.

During 2008, Providence commissioned a number of internal and third party studies to assess the redevelopment potential and ultimate resource base of the Singleton Field. These studies confirm that increased recovery rates are possible and as a result, Providence has commenced a phased programme of targeted development drilling, well stimulation and work-over activities with the objective of both accelerating production and increasing reserves.

The L99/02-SWD well represents the first phase of this field redevelopment, with the well programmed to target potential zones of un-swept oil within the Singleton Field. This sub-horizontal well has been designed to penetrate a c. 2,800 ft section of hydrocarbon bearing reservoir and is expected to materially increase oil production rates.

Current production from the field is c. 500 BOPD and c. 1.2 MSCFGD* (c. 700 BOEPD) from six wells. Providence holds a 99.125% interest and operates the Singleton Field, with Noble Energy holding the remaining 0.875%.

Tony O'Reilly, Chief Executive of Providence, said, "This new development well is the first major activity in our field re-development programme at Singleton. Pre-drill modeling suggests a potential production uplift of some 30%, which can be brought on line immediately. We look forward to updating you on the drilling results in the coming weeks."

Tags: Providence Resources Plc