Providence Resources plc : Barryroe Well Test Analysis Confirms Productivity Potential
May 24 2012 - 1:00AM
UK Regulatory
TIDMPVR
May 24(th) 2012
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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: +353 1 219 4074
Tony O'Reilly, Chief Executive
John O'Sullivan, Technical Director
Powerscourt Tel: +44 207 250 1446
Lisa Kavanagh/Rob Greening
Murray Consultants Tel: +353 1 498 0300
Pauline McAlester/Pauline Dooley
Cenkos Securities Plc Tel: +44 207 397 8900
Adrian Hargrave/ Nick Wells
J&E Davy Tel: + 353 1 679 6363
Eugenee Mulhern/ Stephen Barry
Liberum Tel: +44 (0)203 100 2000
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
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. 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 the information contained therein.
Source: Providence Resources plc via Thomson Reuters ONE
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