San Leon Energy PLC Barryroe update (3579O)

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RNS Number : 3579O

San Leon Energy PLC

10 October 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.

The full announcement by Providence stated the following:

TECHNICAL UPDATE

Barryroe Oil Field

Reservoir Analysis Update

   --      STATIC & DYNAMIC BASAL WEALDEN RESERVOIR ANALYSIS RESULTS

o MODELLED RECOVERY FACTORS OF 17-43% UTILISING HORIZONTAL PRODUCTION & WATER INJECTION WELLS

o MODELLED RECOVERY FACTOR OF 31% TO BE USED FOR DEVELOPMENT PLANNING

   --      DEVELOPMENT CONCEPT ENGINEERING CONTRACT AWARDED

Providence Resources P.l.c., ("Providence") the Irish oil and gas exploration and development company, whose shares are quoted in London (AIM) and Dublin (ESM), is pleased to provide a further update on its 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 and Licensing Option (LO) 12/4, situated in c. 100 m water depth and is c. 50 km off the south coast of Ireland.

Providence has recently undertaken static and dynamic modelling of the main Basal Wealden oil bearing reservoir interval. This work, carried out by RPS Energy on behalf of the Barryroe partners, incorporated the data from all five Basal Wealden reservoir penetrations, together with maps derived from the recent 3D seismic survey. This study has established oil recovery factors which range from 17% to 43%. Based on a development scenario involving 41 horizontal production and 22 horizontal water-injection wells over a 25 year field life, a recovery factor of 31% is modeled. These horizontal producer and injector wells are designed to be 600m in length, with the producers incorporating gas lift.

Providence is also pleased to announce that the Barryroe Concept Development Engineering Study contract has been awarded to Procyon Oil & Gas. This study will evaluate a number of preferred development options which were high-graded during the recently completed development screening study.

Speaking today, John O'Sullivan Technical Director of Providence said;

"These reservoir and dynamic modelling studies have identified significant productive potential in the Basal Wealden reservoir, which is consistent with the test and other data that we have previously announced. These results will now be factored into our ongoing field pre-development work where we have kicked off a key engineering study to identify and select the optimum development concept. As part of this study, we will obviously consult and solicit feedback from both regulatory and local stakeholders on an ongoing basis."

For further information contact:

 
 San Leon Energy plc                   +353 1291 6292 
 Oisin Fanning, Executive Chairman 
 
 Westhouse Securities Limited          +44 (0) 20 7601 6100 
 Richard Johnson 
  Antonio Bossi 
 
 Macquarie Capital (Europe) Limited    +44 (0) 20 3037 2000 
 John Dwyer 
 
 Fox Davies Capital                    +44 (0) 20 3463 5000 
 Daniel Fox-Davies 
  Richard Hail 
 
 FirstEnergy Capital LLP               +44 (0) 20 7448 0200 
 Hugh R. Sanderson 
  David Van Erp 
 
 College Hill Associates               +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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