PROVIDENCE RES. Providence Resources plc : Barryroe Oil in Place Resource Update

 
TIDMPVR 
 
July 25(th) 2012 
Embargo 7am 
 
 
                                    BARRYROE 
                          OIL IN PLACE RESOURCE UPDATE 
 
  * UPDATED OIL IN PLACE ESTIMATES 
 
 RESERVOIR  INTERVAL   P50 (MMBO)   P10 (MMBO) 
 
 
 
 MIDDLE WEALDEN           287          706 
 
 BASAL WEALDEN            756          906 
 
 
 
 TOTAL                   1,043        1,612 
 
 
 
 
 
  * FURTHER UPSIDE POTENTIAL IN HYDROCARBON BEARING LOWER WEALDEN AND PURBECKIAN 
    SANDS AS WELL AS IN DEEPER UPPER JURASSIC EXPLORATION OBJECTIVES 
 
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 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 is located in 
Standard Exploration Licence (SEL) 1/11, lies in c. 100 metre water depth and is 
c. 50 kilometres off the south coast of Ireland. 
 
Following  the successful drilling and testing of the Barryroe 48/24-10z well in 
March  2012, Providence has  now completed  a series  of comprehensive post-well 
studies  in order  to update  the in-place  volumetric resource estimate for the 
Barryroe  discovery contained  within Standard  Exploration Licence (SEL) 1/11. 
This  assessment has incorporated the data from all 6 wells drilled on Barryroe, 
together  with  the  recently  acquired/processed  3D seismic data, existing 2D 
seismic data, as well as utilizing other regional data. 
 
This  analysis  demonstrates  that  the  Barryroe  trap at Base Wealden level is 
situated  in the  hanging-wall side  of an  inverted major intra-basinal growth- 
fault  system and covers an area of several hundred square kilometres. The crest 
of  the  structure  is  located  at  c.  6,400 ft  TVDSS  with  a deepest logged 
hydrocarbons  at c.  7,300 ft TVDSS  with no  evidence of  an oil-water contact. 
Reservoir  fluid  data  from  the  recent  48/24-10z well indicate that there is 
unlikely  to be any primary gas cap present at the crest of the structure in the 
Basal Wealden Sands. 
 
UPDATED STOIIP - MIDDLE AND BASAL WEALDEN 
The  lowest closing  contour (P10)  for the  Barryroe structure at Basal Wealden 
reservoir  level is mapped  at c. 7,500 ft  TVDSS, just c.  200 ft down-dip from 
existing well control. A mid-case (P50) Basal Wealden average net sand thickness 
of just 23 ft has been assumed across the structure for volumetric purposes and, 
when  combined with well petrophysical parameters, results in an in-place P50 of 
756 MMBO  and P10  of 906 MMBO.  The large  increase in  Basal Wealden resources 
versus the previous estimate is based on the ability to use the new high quality 
3D seismic  data to  image and  extend the  Basal Wealden  sand play  across the 
entire  mapped Barryroe structure.  The resource figures  for the Middle Wealden 
(P50  of 287 MMBO and P10  of 706 MMBO) have not  been revised and remain as per 
the previous RPS Energy audit. 
 
ADDITIONAL LOWER WEALDEN & PURBECKIAN RESOURCE POTENTIAL 
As  in the recent 48/24-10z well, all of the previous Barryroe wells, which were 
drilled  through the Lower  Wealden, encountered a  thick c. 1,000 ft section of 
inter-bedded  sands and shales with all  sands logged as hydrocarbon bearing. In 
the  eastern part of Barryroe, these sands  are generally thin in nature however 
they thicken considerably to the west as evidenced by the previous Esso-operated 
48/23-1 well.  That  well,  which  logged  c.  120 ft  of  stacked Lower Wealden 
hydrocarbon   bearing  sands  had  average  porosities  of  16% and  hydrocarbon 
saturations  of  70%. A  failed  well  test  in  1976 over  this interval is now 
interpreted  by the partners  to be due  to mechanical failure. The 48/23-1 well 
also  encountered  a  c.  70 ft  logged  hydrocarbon  bearing  sand  within  the 
Purbeckian lacustrine shales underlying the Basal Wealden, which was not tested. 
Deeper  exploration potential has  also been identified  under Barryroe at Upper 
Jurassic level, which is as yet undrilled. Mapping confirms the Barryroe closure 
persists to Base Cretaceous level and the overpressured shales of the Purbeckian 
should provide an effective seal for any potential accumulation. 
 
Providence  has commenced mapping of these  newly prospective zones and plans to 
provide an additional resource update once this work has been completed. 
 
Speaking today, Tony O'Reilly, Chief Executive of Providence said, 
 
"We are delighted to be in a position to provide such a significant increase in 
the Barryroe oil in place resources. The subsurface mapping and geological 
modeling results have confirmed that the Barryroe structure covers a very large 
area, and comprises four distinct hydrocarbon bearing reservoir zones. 
Interestingly, our most recent well was situated c. 900 ft down-dip from the 
structural crest and still encountered oil to the base of the primary Basal 
Wealden Sand. In fact, the lack of any logged water bearing reservoir intervals 
in the lower c. 1,500 ft of our recent 48/24-10z attests to the resource 
potential within the Barryroe structure and strongly suggests that there may 
also be material hydrocarbon potential at deeper reservoir intervals within the 
structure. It is clear from these studies that Barryroe is a substantial oil 
accumulation across multiple stacked horizons with much running room for further 
resource growth." 
 
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 
 
 
 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 in the North Celtic Sea and 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. The last well, 
48/24-10z, was drilled by Providence in 2011/2012.  The field is fully covered 
by both 2D and 3D seismic. 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 (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%). 
 
 
GLOSSARY 
TVDSS - True Vertical Depth Subsea 
(o) API - Measurement Of Oil Gravity 
STOIIP - Stock tank Barrels of Oil in Place 
MMBO - Million Barrels of Oil 
Ft - Feet 
 
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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Source: Providence Resources plc via Thomson Reuters ONE 
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