Barryroe Appraisal well Operational Update

 
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 
 
 
 
 
 
 
 
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(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Providence Resources plc via Thomson Reuters ONE 
 
[HUG#1589079]