Lansdowne Oil Share News (LOGP)

Providence Resources, the Irish oil and gas firm, said a third party assay has confirmed the presence of light sweet waxy oil at the Barryroe oil discovery off the south coast of Ireland.The assay reports the Barryroe oil to be a premium light (43 degrees gravity API), low sulphur, low TAN (acidity) and low metal crude. The wax content has been analysed to be around 17% (by weight) and the nitrogen content is also low. Providence Resources of the operator of the Barryroe oil discovery in the North Celtic Sea basin, and has an 80% stake in the discovery; fellow Irish oil firm Lansdowne Oil and Gas also has a stake in the discovery. 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 details of a study were published which confirmed that the basal hydrocarbon bearing sandstone package is highly permeable and that initial production rates of around 12,500 barrels of oil per day (BOPD) and around 11m standard cubic feet per day of gas (around 14,300 barrels of oil equivalent per day) could be achieved with a 1,000 feet horizontal well through a 4.5 inch (outside diameter) production tubing under natural lift."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," claimed Tony O'Reilly, Chief Executive Officer of Providence. "Our well testing results, and subsequent horizontal modelling, 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," he added. JH