Oil exploration company Providence Resources has been awarded a licensing option for the Baltimore heavy oil discovery in block 48/19 in the North Celtic Sea Basin.
The discovery well is situated about 30 kilometres off the south coast of Ireland in about 100 metres of water. Initial estimates suggest a resource potential of up to 300 million barrels of oil.
Providence says that while technically challenging, the Baltimore oil accumulation deserves further review given the current sustained higher oil pricing environment.
Heavy, or unconventional, oil is crude oil which does not flow easily as its density is higher than than of light or conventional oil. It has become more attractive recently due to the increase in oil prices as it provides a potential significant source of new global oil reserves.
Tony O'Reilly, the company's CEO, said that as heavy oil is a new business focus for Providence, the analysis on the well will be carried out through EXOLA, its new special purpose vehicle. Any future developments will be financed separately from the parent company.
'We look forward to updating our shareholders on what we believe could prove to be a very exciting and valuable addition to our growing business portfolio,' Mr O'Reilly added.
