Providence Announces Partnership for Its Val Verde Prospect
Monday, August 18th 2008
Providence Resources, Inc., announced that its wholly owned subsidiary Providence Exploration, LLC has entered into prospect participation and joint operating agreement with Elm Ridge Exploration Company, LLC (“Elm Ridge”), a New Mexico based oil and gas exploration company. Under the agreement Elm Ridge acquired a 50% interest in the Val Verde Prospect in exchange for an initial payment of $7,212,000 and Elm Ridge’s commitment to carry Providence for up to $2,000,000 on the first two wells to be drilled to the Ellenberger formation. The parties further agreed to hire R.K. Ford & Associates, Inc. (www.rkford.com), a Midland, Texas based drilling and completion company, to carry out its initial drilling program.
During 2007 Providence completed an extensive 3D-seismic acquisition program on its Val Verde Prospect that was supervised and interpreted by TRNCO Petroleum Corporation of Midland, Texas. Bill Purves, former chief geologist of Pioneer Natural Resources Company and technical advisor to Providence has stated that: “Providence is the first company to acquire 3D-seismic data for the Val Verde region which pioneering effort gives us a competitive edge over other exploration activities in this area. I might add that we are very pleased with the results of our seismic program.”
Providence has identified about 25 drilling targets. The initial two well drilling program will target the Ellenberger formation at a depth of around 16,000 feet. Drilling is scheduled to begin in the fourth quarter of 2008.
Providence is an independent oil and gas company headquartered in Austin, Texas that is engaged in the exploration and development of hydrocarbon reserves. Providence holds oil and gas interests in 12,832 gross acres located in Val Verde County, Texas.
