Providence Resources P.l.c., (“Providence”) the London (AIM) and Dublin (ESM) listed oil and gas exploration and production company, announced that it has taken delivery of the GSF Arctic III (“Arctic III”) semi-submersible drilling rig for the upcoming appraisal drilling programme at Barryroe.
The Arctic III came under contract on Saturday, November 5th and the rig is currently being mobilised to Irish waters from the North Sea. Providence holds a 50% interest in the Barryroe licence (SEL 1/11) and operates on behalf of its partners San Leon Energy Plc (30%) and Lansdowne Oil & Gas Plc (20%). Drilling is expected to commence within the next 2 weeks. A further announcement regarding the drilling of Barryroe will be made in due course.
The Barryroe licence lies directly below the Seven Heads Gas Field and has been successfully tested at flow rates of between 1,300 and 1,600 BOPD, 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 degrees API) and contains relatively high wax content ranging from 12 to 22 per cent, which may require treatment at surface. Providence holds a 50% interest in the licence and operates on behalf of its partners San Leon Energy Plc (30%) and Lansdowne Oil and Gas Plc (20%).A third party audit carried out by RPS Energy for Lansdowne Oil & Gas plc indicated 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. Providence entered into a MOA with Shell Trading and Marketing to agree an oil off-take agreement for future Barryroe oil production.
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Source: Providence Resources, November 7, 2011