San Leon, the specialist oil and gas company with an extensive portfolio of assets across Europe and North Africa, notes this morning's announcement from Providence Resources plc ("Providence") of the technical update by Providence on the Barryroe oil discovery in the North Celtic Sea Basin, offshore Ireland. San Leon announced, on 23 December 2011, that the Company has assigned its 30% working interest in Standard Exploration Licence 1/11 to Providence in exchange for a 4.5% NPI on the full field. San Leon Energy will not pay any further appraisal or development costs on the Licence and is not paying any costs towards the 48/24-10 well.
The full announcement by Providence stated the following:
TECHNICAL UPDATE - BARRYROE OIL ASSAY COMPLETE
· THIRD PARTY ASSAY CONFIRMS LIGHT SWEET WAXY OIL
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. 100m water depth and is c. 50 km off the south coast of Ireland.
An independent third party crude assay of a 20-litre Barryroe oil sample collected during the recent Barryroe well testing operations has now been completed. The assay reports the Barryroe oil to be a premium light (43o API), low sulphur, low TAN (acidity) and low metal crude. The wax content has been analysed to be c. 17% (by weight) and the nitrogen content is also low. These data are an improvement on the previously published PVT fluid analysis (see RNS of March 15th).
A comprehensive programme of post-drill studies is continuing in order to better define the Barryroe oil in place resource, recoverable reserves and future field economics. In late May (see RNS of May 24th), the latest of these studies detailing results of well test analysis confirmed that the basal hydrocarbon bearing sandstone package is highly permeable and that initial production rates of c. 12,500 BOPD & c. 11 MMSCFGD (c. 14,300 BOEPD) could be achieved with a 1,000' horizontal well through a 4.5" OD production tubing under natural lift.
Speaking today, Tony O'Reilly, CEO of Providence said,
"The results of this Barryroe oil assay vindicate our proposition that high value crudes exist in the shallow waters off the south coast of Ireland. Our well testing results, and subsequent horizontal modeling, has demonstrated that these crudes can be produced at commercially attractive rates. Our post well studies are continuing apace and we look forward to providing further updates over the coming months."
John Buggenhagen, who has reviewed this update, has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy Group and based in San Leon's Warsaw office in Poland.
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