Barryroe Update (0225E)
May 24 2012 - 4:28AM
UK Regulatory
TIDMSLE
RNS Number : 0225E
San Leon Energy PLC
24 May 2012
24 May 2012
San Leon Energy Plc
("San Leon" or the "Company")
Barryroe Update
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:
BARRYROE WELL TEST ANALYSIS CONFIRMS PRODUCTIVITY POTENTIAL
-- WELL TEST ANALYSIS INDICATES HIGH PERMEABILITY BASAL OIL BEARING RESERVOIR INTERVAL
-- HORIZONTAL DEVELOPMENT WELLS PREDICTED TO DELIVER SIGNIFICANT PRODUCTION RATES
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.
A comprehensive programme of post-drill studies is continuing in
order to better define the Barryroe oil in place resource and
potential recoverable reserves. In early May (see RNS of May 10th),
the first of these studies detailing results of seismic inversion
work confirmed that the basal hydrocarbon bearing sandstone package
can be directly mapped from 3D seismic data. These data also
indicated that this basal reservoir sequence is widely developed in
the Barryroe area.
Providence has completed further analysis of the 48/24-10z well
test data which were acquired by Schlumberger during well testing
operations. The data were analyzed using a leading wellbore
modeling software system to determine the potential Initial
Production (IP) rates achievable from a single horizontal
development well. This analysis indicates that the tested basal oil
bearing sandstone package is of high quality with an average test
derived permeability of c. 400 millidarcies, confirming the high
productivity potential as demonstrated during the well testing
operations. The analysis forecasts that a 1,000' horizontal well
could deliver an IP of c. 12,500 BOPD & c. 11 MMSCFD (c. 14,300
BOEPD) through a standard 4.5" outer diameter (OD) production
tubing under natural lift. Further well deliverability analysis and
optimization studies are ongoing to incorporate artificial lift
which is expected to form part of the field development plan.
Updated oil in place estimates are expected to be finalised during
Q3 2012 with the estimated recoverable reserves and associated
development concept being available in Q4 2012.
Speaking today, John O'Sullivan, Technical Director of
Providence said,
"We had anticipated that we were dealing with a high
productivity oil system both in terms of oil mobility and reservoir
development. These figures now confirm the magnitude of that
productivity potential and clearly demonstrate that the Barryroe
basal sands could potentially deliver oil at significantly higher
production rates than was previously modeled. This obviously has an
important effect on the forward development planning and potential
production profiles and should serve to increase the project
valuation. In addition, given that the seismic modeling is allowing
us to directly map the reservoir interval from the 3D seismic data,
we are now in a better position to plan for horizontal wells and
benefit from their associated material incremental well production
rates."
-ENDS-
For further information contact:
San Leon Energy Plc Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
Macquarie Capital (Europe) Limited Tel: +44 (0) 20 3037
2000
Paul Connolly
John Dwyer
Westhouse Securities Tel: +44 (0) 20 7601
Richard Johnson 6100
Antonio Bossi
College Hill Associates Tel: +44 (0) 20 7457
2020
Nick Elwes
www.sanleonenergy.com
Qualified person
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLIFFTERISFIF
San Leon Energy (LSE:SLE)
Historical Stock Chart
From Jun 2024 to Jul 2024
San Leon Energy (LSE:SLE)
Historical Stock Chart
From Jul 2023 to Jul 2024