Providence Resources plc : Barryroe Oil Field Technical Update
5th April 2013
BARRYROE OIL FIELD
*BASAL WEALDEN OIL RESERVOIR RESOURCE AUDIT COMPLETE
* Competent Person's Report ("CPR") resource audit by Netherland Sewell
& Associates Inc
*TOTAL GROSS AUDITED ON-BLOCK BARRYROE 2C RECOVERABLE RESOURCES OF 346
Providence Resources P.l.c., ('Providence') the Irish oil and gas exploration
and development company, whose shares are quoted in London (AIM) and Dublin
(ESM), is pleased to provide a resource update on the Barryroe oil field in
the North Celtic Sea Basin, offshore Ireland. Providence (80%) operates
Barryroe on behalf of its partner Lansdowne Oil and Gas plc (20%). The area
which is located in Standard Exploration Licence (SEL) 1/11 and Licensing
Option (LO) 12/4, lies in c. 100 metre water depth and is c. 50 kilometres off
the south coast of Ireland.
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 have 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
Speaking today, John O'Sullivan, Technical Director of Providence said:
"This is another very positive step for Barryroe. This third party resource
audit by Netherland Sewell & Associates further validates the significant
volumetric and recoverable resources of the Basal Wealden oil reservoir in the
Barryroe Field, which Providence first reported on last summer. In addition,
the audit has demonstrated that there are significant volumes of associated
gas in solution.
"Having now completed this audit, and having finalised Phase 2 development
planning with Mott MacDonald, we will now proceed with our planned farm out
discussions, where we have already received significant international industry
interest. Finally, Providence will continue to work on the material resource
potential associated with the Lower Wealden and Purbeckian logged hydrocarbon
bearing reservoir intervals, which were encountered by previous wells drilled
on the field."
Providence Resources Plc is an Irish based oil and gas exploration company
whose shares are traded on the London AIM market and on Dublin's ESM market.
Providence's portfolio of appraisal and exploration assets includes licence
interests in Ireland (offshore) and the United Kingdom (offshore). In 2011,
Providence, along with its partners, commenced a circa $500 million multi-year
drilling programme on a number of exploration and development wells in 6
different basins offshore Ireland. This programme represents the largest
drilling campaign ever carried out offshore Ireland.
The Barryroe Field lies in the North Celtic Sea Basin and 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 last well, 48/24-10z, was drilled by Providence in 2011/2012. The
field is covered by both 2D and 3D seismic. The successfully tested reservoir
sands are of Cretaceous Middle and Lower Wealden age located between c. 4,500'
TVDSS and 7,550' TVDSS. The oil is light (43^o API) with a wax content of c.
17-20%. Providence holds an 80% interest in the licence and operates on behalf
of its partner, Lansdowne Oil and Gas Plc (20%).
Providence Resources P.l.c Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive / John O'Sullivan,
Powerscourt Tel: +44 207 250 1446
Lisa Kavanagh / Rob Greening
Murray Consultants Tel: +353 1 498 0300
Cenkos Securities Plc Tel: +44 207 397 8900
Adrian Hargraves / Nick Wells
J&E Davy Tel: +353 1 679 6363
Liberum Tel: +44 203 100 2000
Simon Atkinson / Clayton Bush
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.
Pursuant to the 'Licensing Terms for Offshore Oil and Gas Exploration,
Development & Production 2007' as issued by the Department of Communications,
Energy and Natural Resources, in advance of issuing this, Providence furnished
the information contained herein to the Minister for Communications, Energy &
SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in
preparing this announcement
MMBO Millions of Barrels of Oil
STOIIP Stock Tank Oil Initially In Place
BCF Billion Cubic Feet of Gas
CPR Competent Person's Report
PETROLEUM RESERVES AND RESOURCES CLASSIFICATION AND DEFINITIONS
A discovery is one petroleum accumulation, or several petroleum accumulations
collectively, for which one or several exploratory wells have established
through testing, sampling, and/or logging the existence of a significant
quantity of potentially moveable hydrocarbons. In this context, "significant"
implies that there is evidence of a sufficient quantity if petroleum to
justify estimating the in-place volume demonstrated by the well(s) and for
evaluating the potential for economic recovery. Estimated recoverable
quantities within such a discovered (known) accumulation(s) shall be initially
classified as Contingent Resources pending definition of projects with
sufficient chance of commercial development to reclassify all, or a portion,
as Reserves. Where in-place hydrocarbons are identified but are not considered
currently recoverable, such quantities may be classified as Discovered
Unrecoverable, if considered appropriate for resources management purposes; a
portion of these quantities may become recoverable resources in the future as
commercial circumstances change or technological developments occur.
Contingent Resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from know accumulations, but the
applied project(s) are not yet considered mature enough for commercial
development due to one or more contingencies. Contingent Resources may
include, for example, projects for which there are currently no viable
markets, or where commercial recovery is dependent on technology under
development, or where evaluation of the accumulation is insufficient to
clearly assess commerciality. Contingent Resources are further categorised in
accordance with the level of certainty associated with the estimates and may
be subclassified based on project maturity and/or characterized by their
For Reserves, the general cumulative terms low/best/high estimates are denoted
by 1P/2P/3P respectively.
For Contingent Resources, the general cumulative terms low/best/high estimates
are denoted 1C/2C/3C respectively.
This announcement is distributed by Thomson Reuters on behalf of Thomson
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
information contained therein.
Source: Providence Resources plc via Thomson Reuters ONE
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