Providence Resources Upgrades Irish Oil Reserve to 1.6 Billion

PUBLISHED: 25 Jul 2012 @ 11:30 | Comments (0) | More info about Kenneth G. Mondero

Irish oil explorer Providence Resources plc (LSE:PVR) said the Barryroe oil field off the coast of Ireland has between 1 and 1.6 billion barrels of oil in place following a series of comprehensive post-well studies.

In a statement released earlier today, data from 2D seismic, 3D seismic, and six wells drilled on the said field indicate about 1 billion barrels of oil in place at P50 estimates, with an upside of 1.6 billion barrels of oil in place at P10 estimates.

“We are delighted to be in a position to provide such a significant increase in the Barryroe oil in place resources,” said Providence Resources Chief Executive, Tony O’Reilly.

The resource estimate was released nearly four months after the successful appraisal in March 2012, which resulted in a 3,500 barrels of oil per day (bopd) flow rate – indicating the commercial viability of the discovery.

In May 2012, analysts forecasted that Barryroe could deliver initial production of 12,500 bopd and 11 million standard cubic feet per day (mmscfd) of gas, equivalent to 14,300 boepd.

The company has also identified deeper exploration potential within the Barryroe discovery that is yet to be drilled.

“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,” CEO O’Reilly added.

Giant Leap Forward

At the annual general meeting of Providence held last 26^th June, O’Reilly said the Barryroe discovery has enabled the company to take a “giant leap forward in advancing its plans to commercialise Ireland’s first oil field”.

The discovery was hailed as Ireland’s saving grace as it sparked hopes for the country becoming a potential oil producer and help redeem its economy that was bailed by the EU in 2010 for €85 billion.

The company’s share price has also more than doubled since Providence first announced that about 41 feet net pay of light sweet crude was discovered back on 27^th February.

At 11:30 AM GMT, shares were up 3.6% to $6.74, £3.765 more than the £2.975 value it had the day before the oil was discovered.

Company Spotlight

Providence holds 80% of the exploration licence, including the 30% working interest assigned by San Leon Energy plc (LSE:SLE), and the other 20% held by Lansdowne Oil & Gas plc (LSE:LOGP). All three companies are listed on the Alternative Investment Market.

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