TIDMLOGP
RNS Number : 1179W
Lansdowne Oil & Gas plc
20 December 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain. If you have any queries on this, then please contact
Steve Boldy, the Chief Executive Officer of the Company
(responsible for arranging release of this announcement).
20 December 2021
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Barryroe Update
Lansdowne Oil & Gas plc (AIM: LOGP), the North Celtic Sea
focused, oil and gas company, welcomes the announcement today by
Providence, providing an update on the Barryroe Field, which lies
in shallow water of about 100m some 50km off the south coast of
Ireland.
Today's announcement recognises that an appraisal well is the
vital next step in moving the Barryroe Field forward to phased
development, a position that Lansdowne has long advocated.
The 48/24-10z well established good oil flow rates from the
Basal Wealden A Sand (3,504 bopd) as well as strong gas flow rates
from the overlying gas bearing Basal Wealden C Sand.
An area up-dip of the 48/24-10z well was identified as optimal
for appraisal and this was designated the K area. A site survey was
acquired successfully in November 2021 over the K area, with the
work completed on time and under budget.
The application for a Lease Undertaking for Barryroe, an
essential precursor to returning to operations and moving the
project forward, is under consideration by the Irish Department of
the Environment, Climate and Communications (DECC).
During 2021 there has been a growing concern about the security
of energy supply in Ireland, with a number of alerts issued by the
regulator. This led to the publishing of a new Government Policy
Statement in November on the Security of Energy Supply. This
recognised the need for the development of new conventional
electricity generation (including gas-fired and
gasoil/distillate-fired generation) as a national priority.
Barryroe, containing significant resources of both oil and gas,
can play an important role in providing secure indigenous energy
supplies for Ireland.
In addition to the oil resources in Barryroe, there are also
substantial gas resources. Previous Competent Person Reports have
indicated some 207 BCF of potential 2C resources. In addition to
this the Basal Wealden C sand, that was gas bearing in the
48/24-10z well, has been estimated to hold c. 400 BCF GIIP.
It is therefore a realistic expectation that Barryroe could
yield more than 500 BCF of natural gas, equivalent to around half
the reserves of the Corrib Gas Field.
Oil and gas prices remain very robust, with the Brent oil price
currently above $70/bbl and European gas prices continuing at very
high levels (UK NBP above GBP2.50 per therm). Not surprisingly,
Barryroe lying in shallow water (c. 100m), with relatively shallow
reservoir depth - 7,000 to 7,500ft, has the potential to deliver
great value at these prices.
For further information please contact:
Lansdowne Oil & Gas plc +353 1 963 1760
Steve Boldy
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill
Richard Hail
Brandon Hill Capital +44 (0) 20 3463 5061
Joint Broker
Oliver Stansfield
Notes to editors:
About Lansdowne
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focused,
oil and gas exploration and appraisal company quoted on the AIM
market and head quartered in Dublin.
For more information on Lansdowne, please refer to
www.lansdowneoilandgas.com .
About Barryroe
Barryroe, located in the North Celtic Sea Basin, off the south
coast of Ireland, has had six wells successfully drilled on the
structure. Hydrocarbons have been logged in all six wells, with
flow test results from four wells. Four wells were drilled in the
1970's by Esso with a further appraisal well drilled in 1990 by
Marathon Oil. The sixth well was drilled by Providence &
Lansdowne in 2011/12. The oil is light (43deg API) with a wax
context of c. 17-20%. The successfully tested reservoir sands are
of Cretaceous Middle and Lower Wealden age located between c.
4,500' TVDSS and 7,550' TVDSS. The field is covered by both 2D and
3D seismic, the latter which was acquired in 2011.
Following acquisition and interpretation of the new 2011 3D
seismic data together with the subsequent drilling and testing of
the 48/24-10z Barryroe appraisal well in 2012, Providence retained
the services of Netherland Sewell & Associates Inc. (NSAI) to
carry out a third party contingent resource audit (CPR) of the
in-place hydrocarbon and recoverable resources for the Basal
Wealden oil reservoir. NSAI reported that the Basal Wealden oil
reservoir has a 2C in-place gross on-block volume of 761 MMBO with
recoverable resources of 266 MMBO and 187 BCF of associated gas,
based on a 35% oil recovery factor. A third party (CPR) audit of
the overlying Middle Wealden, which was carried out by RPS Energy
(RPS) in 2011, reported a 2C in-place gross on-block volume of 287
MMBO with technically recoverable resources of 45 MMBO and 21 BCF
of associated gas, based on a 16% oil recovery factor.
The total combined audited gross on block 2C recoverable
resources at Barryroe therefore amount to 346 MMBOE, comprising 311
MMBO and 207 BCF. The following table summarises the range of total
gross audited on-block Barryroe oil resources:
1C 2C 3C
(MMBO) (MMBO) (MMBO)
Basal Wealden STOIIP (NSAI) 338 761 1,135
Basal Wealden Recoverable (NSAI) 85
266 511
Middle Wealden STOIIP (RPS) 31 287 706
Middle Wealden Recoverable (RPS) 4
45 113
TOTAL STOIIP 369
1,048 1,841
TOTAL RECOVERABLE OIL RESOURCES 89 311 624
Note: The table above excludes recoverable solution gas (i.e.
207 BCF or 34.5 MMBOE in the 2C case)
Further incremental resource potential has been identified in
logged hydrocarbon bearing intervals within stacked Lower Wealden
and Purbeckian sandstones which Providence has previously estimated
contains total associated P90, P50 & P10 in place oil resources
of 456 MMBO, 778 MMBO & 1,165 MMBO respectively. As there is
currently limited reservoir and well test data available over these
two intervals, future well data over these specific zones would be
required in order to firm up their associated final recoverable
resource estimates.
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