Operations

Ireland Operations

CELTIC SEA

Standard Exploration Licence 1/11 and Licensing Option 12/4

BARRYROE OIL FIELD (80%, Operator)

The Barryroe oil field, which is located in SEL 1/11 (Providence 80.0%,Operator), was the subject of successful appraisal drilling in 2012. The field is situated in c.100 metres of water c.50 km off the south coast of Ireland. Previous operators had drilled 5 wells on the field, all of which logged hydrocarbon bearing intervals, with three being successfully flow tested. In 2011, having acquired a new 3D seismic survey over the field, Providence and 20% partner, Lansdowne, commenced the drilling of a sixth well on this areally extensive field. In March 2012, the partners announced the testing results from this well which far exceeded the pre-drill expectations with oil rates in excess of 3,500 BOPD.

A post-well third party resource study (CPR) carried out recently by Netherland Sewell and Associates Inc., utilising the new 3D seismic data, has led to a substantial upgrade in the audited field size to over 1 billion barrels of oil in place, with in excess of 300 million barrels recoverable (2C).

TABLE: Total gross audited on-block Barryroe oil resources.

 1C (MMBO)2C (MMBO)3C (MMBO)
Basal Wealden STOIIP (NSAI) 3387611,135
Basal Wealden Recoverable (NSAI) 85266511
Middle Wealden STOIIP (RPS) 31287706
Middle Wealden Recoverable (RPS) 445113
TOTAL STOIIP 3691,0481,841
TOTAL RECOVERABLE OIL RESOURCES89311624

Note: The table above excludes recoverable solution gas (i.e. 207 BCF or 34.5 MMBOE in the 2C case)

Further incremental resource potential has been identified in logged hydrocarbon bearing intervals within stacked Lower Wealden and Purbeckian sandstones, which Providence has previously estimated to contain total associated P90, P50 & P10 in place oil resources of 456 MMBO, 778 MMBO & 1,165 MMBO, respectively.

With the Conceptual Development Engineering Study and the majority of post-well studies complete, Providence is now in a position to advance its farm-in discussions with potential co-venturers (farminees). Already, the Company has received significant amount of international industry interest in Barryroe with the farm-in process expected to take several months.

Over the past 12 months, a series of activities have taken place that have allowed for an upgrade of resreves of the Barryroe oil field.  These updates have been issued by the Company as follows:

Feb 27th, 2012 RNS – Operational Update – Well at TD/On prognosis

  • Light sweet high quality crude
  • 15% porosity & 87% hydrocarbon saturation – 41 ft. of net pay

Mar 15th, 2012 RNS – Flow Test # 1

  • Flow test results – lower basal sands 24 ft. section
  • 3,514 BOPD and 2.93 MMSCFGD (approx. 4,000 BOEPD) through 68/64” choke at 517 psia head pressure without artificial lift
  • Seismic signature of the basal sands
  • Low viscosity of 0.68 centipoises, GOR of 800 SCF/STB

 Mar 23rd, 2012 RNS – Flow Test # 2

  • Gas (upper) 17 ft. section tested
  • 1,300 BOPD and 7 MMSCFGD (approx. 2,466 BOEPD)through 36/64” choke at 1,700 psia head pressure without artificial lift
  • AOF potential of 23 MMSCFGD
  • So calculated combined flow rate potential of nearly 8,000 BOEPD

May 10th, 2012 RNS – Seismic Inversion Study

  • Seismic Inversion study confirms basal sands directly mappable from 3D seismic
  • De-risks future drilling of horizontal development wells

May 24th, 2012 RNS – Flow Rate Modeling

  • Modeling of potential IP rates using average permeability of 400 md and standard 4.5” OD production tubing
  • 1,000 ft. horizontal well delivers 12,500 BOPD + 11 MMSCFGD

June 6th, 2012 RNS - Assay Results

  • 43o API; 17% wax; Low TAN; low metal crude
  • Higher API and lower wax than previous guidance

June 21st, 2012 RNS – Core Analysis

  • Permeabilities better in basal oil reservoir – Approx. 600 mD
  • Good permeabilities in secondary logged hydrocarbon bearing sands – Approx. 100 mD
  • Identification of marine influence in depositional setting in the lower part of the Wealden

July 25th, 2012 RNS – Updated STOIIP from combined Middle and Basal Wealden reservoirs

  • P50 – 1.043 billion barrels
  • P10 – 1.612 billion barrels
  • Incremental upside identified in the Lower Wealden, underlying Purbeckian sands and in deeper Jurassic exploration targets

September 5th, 2012 RNS – Updated STOIIP from combined Lower Wealden and Purbeckian reservoirs

  • P50 – 778 million barrels
  • P10 – 1.165 billion barrels

October 10th, 2012 RNS – Technical Update - Reservoir Analysis Update

  • Static and Dynamic basal Wealden Reservoir Analysis Results
  • Modelled RF of 17-41% utilising horizontal production and water injection wells; 31% to be used for development planning
  • Development Concept Engineering Contract Awarded

April 5th, 2013 RNS – Technical Update – Barryroe Oil Field

  • Basal Wealden Oil Reservoir Resources Audit complete
  • Competent Person’s Report resource audit by Netherland Sewell & Associates Inc.
  • NSAI have reported that the Basal Wealden oil reservoir has a 2C in-place gross on-block volume of 761 MMBO with recoverable resources of 266 MMBO and 187 BCF of associated gas, based on a 35% oil recovery factor
  • Total Gross Audited on-block Barryroe 2C Recoverable resources of 346MMBOE, comprising 311 MMBO and 207 BCF

 

 July 25th, 2013: NSAI -  CPR Letter

 


Videos:

Providence Resources' Barryroe Oil Field - Oil in Palce Resource Update


Providence Resources' Barryroe Oil Discovery


Barryroe Well Testing. March 14th, 2012.