Barryroe Appraisal well Operational Update
27 February 2012 - 6:00PM
UK Regulatory
TIDMPVR
27(th) February 2012
Embargo 7am
BARRYROE APPRAISAL WELL
OPERATIONAL UPDATE
* DRILLING ACTIVITIES SUCCESSFULLY COMPLETED
* PRIMARY BASAL SANDSTONE RESERVOIR PACKAGE ENCOUNTERED
* EXTENSIVE FORMATION EVALUATION PROGRAMME CARRIED OUT
* LOG AND CORE DATA CONFIRM PRIMARY BASAL SANDS AS BEING HYDROCARBON
BEARING
* OIL PRESSURE GRADIENT CONSISTENT WITH A C. 40(o) API CRUDE
* PRESSURE ANALYSIS INDICATES POTENTIAL FOR SIGNIFICANT HYDROCARBON
COLUMN
* OPERATIONS FOR WELL FLOW TESTING HAVE NOW COMMENCED
* PROGRAMME EXPECTED TO TAKE UP TO 10 DAYS TO COMPLETE
Providence Resources P.l.c., ('Providence') the London (AIM) and Dublin
(ESM) quoted oil and gas exploration and production company, is pleased to
provide an operational update on its ongoing well operations in the North Celtic
Sea Basin, offshore southern Ireland. The 48/24-10z Barryroe appraisal well is
located in c. 100 metre water depth, c. 50 kilometres offshore Ireland in
Standard Exploration Licence (SEL) 1/11 in the North Celtic Sea Basin.
Providence (80%) operates SEL 1/11 on behalf of its partner Lansdowne Oil & Gas
plc (20%).
DRILLING ACTIVITIES SUCCESSFULLY COMPLETED
The 48/24-10z Barryroe appraisal well was drilled to a final total depth
of 7,550' TVDSS and encountered the primary basal sandstone reservoir interval
within the pre-drill depth prognosis. Reservoir development within this sand
package is better than expected, with very good correlation of the overall sand
packages with the offset 48/24-3 well.
EXTENSIVE FORMATION EVALUATION PROGRAMME CARRIED OUT
Indications of hydrocarbons were seen whilst drilling, and the subsequent
results from wire-line logging have confirmed the presence of 41ft. of net pay
(averaging 15% porosity and 87% hydrocarbon saturation), with no indication of a
hydrocarbon water contact. Pressure data over this interval have revealed the
presence of both oil and gas bearing zones, with the oil gradient being
consistent to that of a light c. 40(o) API crude. A number of in-situ reservoir
oil samples have been recovered and have been transported to the UK for further
detailed laboratory analysis.
Preliminary pressure gradient analysis indicates that the basal sandstone could
have the potential for an oil-water contact to be significantly down-dip from
the current well location. It is notable that this basal sandstone package can
be regionally correlated to the previous wells drilled on the Barryroe licence
area, including the 48/23-1 well which was drilled by a previous operator some
20 kilometres to the west of the 48/24-10z well.
OPERATIONS FOR WELL FLOW TESTING HAVE NOW COMMENCED
With drilling operations now completed, and with all the wire-line logging data
and side walls cores now in hand, the operations phase now moves to the well
flow testing programme. The forward plan is to set a production liner, prior
to flow testing the well over a number of days. The overall programme is
expected to take up to c. 10 days to complete.
Commenting on the announcement, Mr. John O'Sullivan, Technical Director said:
"The confirmation of high quality light oil within a porous and potentially
laterally extensive sandstone system is extremely encouraging. The
comprehensive newly acquired well data are already providing key insights into
the hydrocarbon resource potential of this system. These sands, which appear to
have an intact overlying pressure seal, sit directly on a proven mature and oil
prone source rock and therefore open the route to significant resource volumes
within the Barryoe licence area. We look forward to materially progressing the
Barryroe project on foot of a successful outcome to our imminent well testing
programme."
CONTACTS:
Providence Resources Plc Tel: +353 (0)1
219 4074
Tony O'Reilly/ John O'Sullivan
Powerscourt Tel: +44
(0)207 250 1446
Rob Greening/Lisa Kavanagh
Murray Consultants Tel: +353
(0)1 498 0300
Pauline McAlester
Cenkos Securities Plc Tel: +44 (0)207
397 8900
Adrian Hargrave/Nick Wells
J&E Davy Tel: + 353 (0)1
679 6363
Eugenee Mulhern/Stephen Barry
ABOUT PROVIDENCE
Providence Resources Plc is an Irish based oil and gas exploration company whose
shares are traded on the AIM market in London and on Dublin's ESM market.
Providence's portfolio of production, appraisal and exploration assets includes
licence interests in Ireland (offshore) and the United Kingdom (onshore &
offshore). In 2011, Providence announced plans to invest with its partners
upwards of $500 million in the drilling of a number of exploration and
development wells in 6 different basins offshore Ireland. This multi-year
programme represents the largest drilling campaign ever carried out offshore
Ireland.www.providenceresources.com.
ABOUT BARRYROE
The Barryroe licence lies directly below the Seven Heads Gas Field and has been
successfully tested at flow rates of between 1,300 and 1,600 BOPD, from three
exploration and appraisal wells. The reservoir sands are of Cretaceous Middle
and Lower Wealden age located between c. 4,500' TVDSS and 7,550' TVDSS. The oil
is light (30 to 42(o) API) and contains relatively high wax content ranging from
12 to 22 per cent, which may require treatment at surface. Providence holds an
80% interest in the licence and operates on behalf of its partner Lansdowne Oil
and Gas Plc (20%). A third party audit carried out by RPS Energy for Lansdowne
Oil & Gas plc indicated P50 and P10 STOIIP estimates for Barryroe of 373 MMBO
and 893 MMBO, respectively. The corresponding 2C and 3C Barryroe technically
recoverable contingent resources are 59 MMBO and 144 MMBO, respectively.
Providence entered into a MOA with Shell Trading and Marketing to agree an oil
off-take agreement for future Barryroe oil production. The current Barryroe
appraisal drilling programme is being carried out using the GSF Arctic III semi-
submersible drilling unit. Mechanical issues at the top of the 12.25" section
necessitated a minor sidetracking operation which was successfully achieved.
GLOSSARY
TVDSS - True Vertical Depth Subsea
LWD - Logging While Drilling
(o) API - Measurement Of Oil Gravity
ANNOUNCEMENT
This announcement has been reviewed by John O'Sullivan, Technical Director,
Providence Resources P.l.c. John holds a B.Sc. in Geology from University
College Cork, Ireland, an M.Sc. in Applied Geophysics from the National
University of Ireland, Galway and a M.Sc.in Technology Management from The
Smurfit School of Business at University College Dublin. John is presently
working part-time on a PhD dissertation at Trinity College, Dublin. John has
worked in the offshore business for 20 years and is a fellow of the Geological
Society of London and member of The Petroleum Exploration Society of Great
Britain. Definitions in this press release are consistent with SPE guidelines.
SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in
preparing this announcement
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Providence Resources plc via Thomson Reuters ONE
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