Chevron, Providence, Folawiyo, others drill Aje oilfield by Q1 2008

The Aje joint venture partners consist of: Yinka Folawiyo Petroleum Company Limited, the operator, Chevron Nigeria Deepwater H Limited, Vitol Exploration Nigeria Limited, Energy Equity Resources Aje Limited and PR Oil and Gas Nigeria Limited.

According to company sources, drilling operations which will commence in the middle of the first quarter of 2008, will be supervised by Chevron in its capacity as technical advisor to the operator.

The Aje 4 well has been designed to fully appraise the hydrocarbon-bearing potential of the Aje structure.

Commenting on the development, Tony O'Reilly, chief executive, Providence Resources Oil and Gas Nigeria Limited, said:

"We are delighted to be able to confirm the drilling of the Aje-4 appraisal well. This is an important well as it will allow us to further assess the ultimate reserve potential of the Aje Field."

Providence had earlier in its end of year trading statement for 2007, acknowledged new farm-out agreement with Chevron and Vitol in respect of the Aje field.

The company also disclosed plans to drill Aje 4 well. In a remark, Reilly said:

"This year, we have also consolidated our relationships with our existing partners ExxonMobil, Sosina, Forestgate, Atlantic Petroleum, CMI and Dyas, as well as build relationships with new partners, such as Chevron and Vitol on the Aje Project. In addition, recently, we announced that we had secured a US $250 million Revolving Credit Facility with Macquarie Bank, which will allow us to capitalise on these relationships and progress a number of production and development opportunities.

"Looking towards 2008, Providence is very well placed to enhance all three areas of its portfolio of production, appraisal and high-value exploration. Increased production has provided important cash flow with which to unlock the potential of the larger assets. Based on our current plans for 2008 (and subject to the availability of rigs), we intend to drill a number of wells next year across our whole portfolio in Ireland , the United Kingdom , the United States ( Gulf of Mexico ) and Nigeria . We look forward to outlining further details in the coming months," he added.