San Leon Energy PLC Barryroe Update (5301L)

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RNS Number : 5301L

San Leon Energy PLC

05 September 2012

5 September 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 ("Licence") 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.

BARRYROE OIL FIELD

ADDITIONAL OIL IN PLACE RESOURCE ESTIMATES FOR TWO NEW RESERVOIR INTERVALS

 
                  P50 (MMBO)   P10 (MMBO) 
---------------  -----------  ----------- 
 LOWER WEALDEN       416          663 
---------------  -----------  ----------- 
 PURBECKIAN          362          502 
---------------  -----------  ----------- 
 TOTAL               778         1,165 
---------------  -----------  -----------

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 further update on the resource potential of Barryroe 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 and Licensing Option (LO) 12/4, situated in c. 100 metre water depth and is c. 50 kilometres off the south coast of Ireland.

ADDITIONAL RESOURCE ESTIMATES FOR THE LOWER WEALDEN AND PURBECKIAN In its RNS of July 25th, 2012, the Company issued updated oil in place figures for the Middle Wealden and Basal Wealden reservoir zones of 1,043 MMBO (P50) and 1,612 MMBO (P10). At that time, the Company also noted that there was further upside potential in the hydrocarbon bearing Lower Wealden and Purbeckian sands, as well as identifying the exploration potential of a deeper Upper Jurassic objective.

Providence has now completed an evaluation of the in place volumetric resource for these two additional logged hydrocarbon bearing intervals at Barryroe. This assessment, which was based on previous well data, together with 2D and 3D seismic data, estimates an additional total P50 oil in place resource of 778 MMBO and P10 resource of 1,165 MMBO. However, as there is limited reservoir and well test data available over these two intervals, future well data over these two specific zones would be required in order to firm up the final resource estimates. As such, these zones have not been included in the Barryroe dynamic reservoir simulation modelling, which is currently ongoing, with the results expected within the next six weeks. The resource potential of the underlying Upper Jurassic exploration objective has not been quantified as no wells have penetrated this deeper target at this location. The Barryroe partners plan to reprocess the 3D seismic data during Q4, and it is hoped that this will allow for better imaging of these deeper zones, prior to quantifying any associated prospective resource potential.

Commenting on the additional resource update, Mr. John O'Sullivan, Technical Director said:

"Whilst our focus remains firmly fixed on progressing the Middle and Basal Wealden sands into development, it is very encouraging to have identified this additional resource potential at Barryroe. It is clear that more data are required over these intervals, however, the numbers are potentially material and provide room for significant resource growth in the Barryroe project in the longer term. In the meantime, we look forward to providing shareholders with an update on recovery factors from the dynamic modelling project."

-ENDS-

For further information contact:

 
 San Leon Energy Plc                  Tel: +353 1291 6292 
 Oisin Fanning, Executive Chairman 
 John Buggenhagen, Exploration 
  Director 
 
 Macquarie Capital (Europe) Limited   Tel: +44 (0) 20 3037 2000 
 Paul Connolly 
 John Dwyer 
 
 Fox Davies Capital                   Tel: +44 (0) 20 3463 5000 
 Daniel Fox-Davies 
 Richard Hail 
 
 FirstEnergy Capital LLP              Tel: +44 (0) 20 7448 0200 
 Hugh R. Sanderson 
 David Van Erp 
 
 Westhouse Securities (Nominated      Tel: +44 (0) 20 7601 6100 
  Advisor) 
 Richard Johnson 
 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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