Providence Resources plc : Barryroe Well Test Analysis Confirms Productivity Potential

 
TIDMPVR 
 
May 24(th) 2012 
Embargo 7am 
 
 
          BARRYROE WELL TEST ANALYSIS CONFIRMS PRODUCTIVITY POTENTIAL 
 
  * WELL TEST ANALYSIS INDICATES HIGH PERMEABILITY BASAL OIL BEARING RESERVOIR 
    INTERVAL 
 
  * HORIZONTAL DEVELOPMENT WELLS PREDICTED TO DELIVER SIGNIFICANT PRODUCTION 
    RATES 
 
Providence Resources P.l.c., ("Providence") the Irish oil and gas exploration 
and production company, whose shares are quoted in London (AIM) and Dublin 
(ESM), is pleased to provide a technical update on the Barryroe oil discovery in 
the North Celtic Sea Basin, offshore Ireland. Providence (80%) operates Barryroe 
on behalf of its partner Lansdowne Oil and Gas plc. The area lies in c. 100 
metre water depth and is c. 50 km off the south coast of Ireland. 
 
A comprehensive programme of post-drill studies is continuing in order to better 
define the Barryroe oil in place resource and potential recoverable reserves. In 
early May (see RNS of May 10(th)), the first of these studies detailing results 
of seismic inversion work confirmed that the basal hydrocarbon bearing sandstone 
package can be directly mapped from 3D seismic data. These data also indicated 
that this basal reservoir sequence is widely developed in the Barryroe area. 
 
Providence has completed further analysis of the 48/24-10z well test data which 
were acquired by Schlumberger during well testing operations. The data were 
analyzed using a leading wellbore modeling software system to determine the 
potential Initial Production (IP) rates achievable from a single horizontal 
development well. This analysis indicates that the tested basal oil bearing 
sandstone package is of high quality with an average test derived permeability 
of c. 400 millidarcies, confirming the high productivity potential as 
demonstrated during the well testing operations. The analysis forecasts that a 
1,000' horizontal well could deliver an IP of c. 12,500 BOPD & c. 11 MMSCFD (c. 
14,300 BOEPD) through a standard 4.5" outer diameter (OD) production tubing 
under natural lift. Further well deliverability analysis and optimization 
studies are ongoing to incorporate artificial lift which is expected to form 
part of the field development plan. Updated oil in place estimates are expected 
to be finalised during Q3 2012 with the estimated recoverable reserves and 
associated development concept being available in Q4 2012. 
 
Speaking today, John O'Sullivan, Technical Director of Providence said, 
 
"We had anticipated that we were dealing with a high productivity oil system 
both in terms of oil mobility and reservoir development. These figures now 
confirm the magnitude of that productivity potential and clearly demonstrate 
that the Barryroe basal sands could potentially deliver oil at significantly 
higher production rates than was previously modeled. This obviously has an 
important effect on the forward development planning and potential production 
profiles and should serve to increase the project valuation. In addition, given 
that the seismic modeling is allowing us to directly map the reservoir interval 
from the 3D seismic data, we are now in a better position to plan for horizontal 
wells and benefit from their associated material incremental well production 
rates." 
 
 
Contacts: 
 
 Providence Resources Plc              Tel: [phone] 
 Tony O'Reilly, Chief Executive 
 John O'Sullivan, Technical Director 
 
 
 Powerscourt                           Tel: [phone] 
 Lisa Kavanagh/Rob Greening 
 
 
 Murray Consultants                    Tel: [phone] 
 Pauline McAlester/Pauline Dooley 
 
 
 Cenkos Securities Plc                 Tel: [phone] 
 Adrian Hargrave/ Nick Wells 
 
 
 J&E Davy                              Tel: + 353 1 679 6363 
 Eugenee Mulhern/ Stephen Barry 
 
 
 Liberum                               Tel: [phone] 
 Simon Atkinson/Clayton Bush 
 
 
 
 
ABOUT PROVIDENCE 
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 production, appraisal and exploration assets includes 
licence interests in Ireland (offshore) and the United Kingdom (onshore & 
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. 
www.providenceresources.com. 
 
 
ABOUT BARRYROE 
The Barryroe licence lies directly below the Seven Heads Gas Field and has 
previously been successfully tested at flow rates of 1,300 and 1,500 BOPD from 
the Middle Wealden and 1,600 BOPD from the basal Wealden, 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) with a wax content ranging from 12 to 22 per cent. Providence 
holds an 80% interest in the licence and operates on behalf of its partner 
Lansdowne Oil and Gas Plc (20%). 
 
On March 15th Providence announced the results of the first test which confirmed 
the successful testing of the lower basal 24' net oil bearing interval, which 
flowed c. 3,514 BOPD & 2.93 MMSCFGD (c. 4,000 BOEPD), On March 23rd, an 
additional 17' thick net gas bearing section was perforated to test the 
potential of the upper part of the basal Wealden sandstone section. The surface 
test spread equipment was optimized for the lower oil zone test and was 
therefore equipment constrained on this gas zone t est, which achieved highly 
productive flow rates of c. 7 MMSCFGD & 1,350 BOPD (c. 2,516 BOEPD) through a 
restricted 36/64" choke, with a flowing well head pressure of c. 1,700 psig. The 
productivity of the gas bearing interval far exceeded expectations and thereby 
constrained the ability to fully open the well up to its maximum potential. 
Preliminary modeling of the pressure data indicates that a co-mingled flow rate 
of c. 17 MMSCFGD & 3,350 BOPD (c. 6,183 BOEPD) at a flowing well head pressure 
of c. 500 psig is achievable. 
 
In 2010 a third party audit carried out by RPS Energy for Lansdowne Oil & Gas 
plc indicated combined Middle and Lower Wealden 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. These figures will require revision due to the positive results of 
the testing of the 48/24-10z well and the ongoing post well studies. 
 
In 2011, Providence entered into a MOA with Shell Trading and Marketing to agree 
an oil off-take agreement for future Barryroe oil production. 
 
 
GLOSSARY 
TVDSS - True Vertical Depth Subsea 
(o) API - Measurement Of Oil Gravity 
BOPD - Barrels of Oil per Day 
BOEPD - Barrels of Oil Equivalent per Day 
MMSCFGD - Millions of Standard Cubic Feet of Gas per Day 
SCF/STB - Standard Cubic Feet/Stock Tank Barrel 
PSIG - Pounds per Square Inch Gauge 
 
 
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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     originality of the information contained therein. 
 
Source: Providence Resources plc via Thomson Reuters ONE 
[HUG#1614525]