San Leon Energy PLC Barryroe update (4526I)
July 25 2012 - 4:12AM
UK Regulatory
TIDMSLE
RNS Number : 4526I
San Leon Energy PLC
25 July 2012
25 July 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 OIL IN PLACE RESOURCE UPDATE
-- UPDATED OIL IN PLACE ESTIMATES
RESERVOIR INTERVAL P50 (MMBO) P10 (MMBO)
MIDDLE WEALDEN 287 706
BASAL WEALDEN 756 906
TOTAL 1,043 1,612
-- FURTHER UPSIDE POTENTIAL IN HYDROCARBON BEARING LOWER WEALDEN
AND PURBECKIAN SANDS AS WELL AS IN DEEPER UPPER JURASSIC
EXPLORATION OBJECTIVES
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 resource
update on the Barryroe oil field in the North Celtic Sea Basin,
offshore Ireland. Providence (80%) operates Barryroe on behalf of
its partner Lansdowne Oil and Gas plc (20%). The area is located in
Standard Exploration Licence (SEL) 1/11, lies in c. 100 metre water
depth and is c. 50 kilometres off the south coast of Ireland.
Following the successful drilling and testing of the Barryroe
48/24-10z well in March 2012, Providence has now completed a series
of comprehensive post-well studies in order to update the in-place
volumetric resource estimate for the Barryroe discovery contained
within Standard Exploration Licence (SEL) 1/11. This assessment has
incorporated the data from all 6 wells drilled on Barryroe,
together with the recently acquired/processed 3D seismic data,
existing 2D seismic data, as well as utilizing other regional
data.
This analysis demonstrates that the Barryroe trap at Base
Wealden level is situated in the hanging-wall side of an inverted
major intra-basinal growth-fault system and covers an area of
several hundred square kilometres. The crest of the structure is
located at c. 6,400 ft TVDSS with a deepest logged hydrocarbons at
c. 7,300 ft TVDSS with no evidence of an oil-water contact.
Reservoir fluid data from the recent 48/24-10z well indicate that
there is unlikely to be any primary gas cap present at the crest of
the structure in the Basal Wealden Sands.
UPDATED STOIIP - MIDDLE AND BASAL WEALDEN
The lowest closing contour (P10) for the Barryroe structure at
Basal Wealden reservoir level is mapped at c. 7,500 ft TVDSS, just
c. 200 ft down-dip from existing well control. A mid-case (P50)
Basal Wealden average net sand thickness of just 23 ft has been
assumed across the structure for volumetric purposes and, when
combined with well petrophysical parameters, results in an in-place
P50 of 756 MMBO and P10 of 906 MMBO. The large increase in Basal
Wealden resources versus the previous estimate is based on the
ability to use the new high quality 3D seismic data to image and
extend the Basal Wealden sand play across the entire mapped
Barryroe structure. The resource figures for the Middle Wealden
(P50 of 287 MMBO and P10 of 706 MMBO) have not been revised and
remain as per the previous RPS Energy audit.
ADDITIONAL LOWER WEALDEN & PURBECKIAN RESOURCE POTENTIAL
As in the recent 48/24-10z well, all of the previous Barryroe
wells, which were drilled through the Lower Wealden, encountered a
thick c. 1,000 ft section of inter-bedded sands and shales with all
sands logged as hydrocarbon bearing. In the eastern part of
Barryroe, these sands are generally thin in nature however they
thicken considerably to the west as evidenced by the previous
Esso-operated 48/23-1 well. That well, which logged c. 120 ft of
stacked Lower Wealden hydrocarbon bearing sands had average
porosities of 16% and hydrocarbon saturations of 70%. A failed well
test in 1976 over this interval is now interpreted by the partners
to be due to mechanical failure. The 48/23-1 well also encountered
a c. 70 ft logged hydrocarbon bearing sand within the Purbeckian
lacustrine shales underlying the Basal Wealden, which was not
tested. Deeper exploration potential has also been identified under
Barryroe at Upper Jurassic level, which is as yet undrilled.
Mapping confirms the Barryroe closure persists to Base Cretaceous
level and the overpressured shales of the Purbeckian should provide
an effective seal for any potential accumulation.
Providence has commenced mapping of these newly prospective
zones and plans to provide an additional resource update once this
work has been completed.
Speaking today, Tony O'Reilly, Chief Executive of Providence
said,
"We are delighted to be in a position to provide such a
significant increase in the Barryroe oil in place resources. The
subsurface mapping and geological modeling results have confirmed
that the Barryroe structure covers a very large area, and comprises
four distinct hydrocarbon bearing reservoir zones. Interestingly,
our most recent well was situated c. 900 ft down-dip from the
structural crest and still encountered oil to the base of the
primary Basal Wealden Sand. In fact, the lack of any logged water
bearing reservoir intervals in the lower c. 1,500 ft of our recent
48/24-10z attests to the resource potential within the Barryroe
structure and strongly suggests that there may also be material
hydrocarbon potential at deeper reservoir intervals within the
structure. It is clear from these studies that Barryroe is a
substantial oil accumulation across multiple stacked horizons with
much running room for further resource growth."
-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
Alexandra Roper
www.sanleonenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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