San Leon, the fast growing 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 Seismic Inversion Study. 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:
BARRYROE SEISMIC INVERSION STUDY CONFIRMS SIGNIFICANT AREAL RESERVOIR POTENTIAL
· MODELLING CONFIRMS THE BASAL HYDROCARBON BEARING SANDSTONE PACKAGE IS DIRECTLY MAPPABLE FROM SEISMIC DATA
· SEISMIC DATA REVIEW INDICATES THE RESERVOIR IS WIDELY DEVELOPED IN THE BARRYROE AREA
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.
In March 2012, Providence announced the successful flow testing of both oil and gas from the 48/24-10z appraisal well (see RNS of March 15th and March 23rd, respectively). This 48/24-10z well was the 2nd well to be tested in the basal sands and the 6th well to be drilled on the Barryroe oil discovery, in which all wells have successfully logged hydrocarbons. In addition to carrying out comprehensive flow testing, significant data acquisition was also carried out utilising modern wire-line equipment. The objective of the 48/24-10z appraisal well was to capture the most comprehensive amount of data that could be used in conjunction with the data from the 5 previously drilled wells (most of which were drilled in the 1970's, and one was drilled in 1990) as well as the 3D data from the 2011 seismic programme.
The newly acquired wire-line log data have now been used to evaluate the potential to directly map the hydrocarbon bearing basal reservoir sands, which were successfully tested in the most recent Barryroe 48/24-10z well. Geokinetics, a US based seismic processing company, has carried out an evaluation of the seismic response of the main basal hydrocarbon bearing reservoir interval. This modeling has confirmed that the basal reservoir sandstone package has a defined seismic response which can be detected clearly within the inverted 3D seismic volume. A preliminary review of the inverted 3D seismic volume indicates that the reservoir sequence is widely developed in the Barryroe area. Detailed interpretation of the inverted seismic data has now commenced and will be used to better define the static oil in place estimates for the Barryroe accumulation. The results from this work are expected later this summer.
Speaking today, John O'Sullivan, Technical Director of Providence said,
"The results of the most recent seismic modeling and inversion are exceptionally encouraging as they confirm our ability to seismically image the Barryroe basal sandstone package, which tested at such great rates in the recent well. This materially helps in the mapping of the Barryroe licence area. The preliminary work also confirms that the reservoir is widely developed, which is very positive both in terms of incremental resource potential as well as our ability to accurately assess its distribution."
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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