Barryroe Update

RNS Number : 6868B

San Leon Energy PLC

05 April 2013

 



5 April 2013

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. 

The full announcement by Providence stated the following:

BASAL WEALDEN OIL RESERVOIR RESOURCE AUDIT COMPLETE

o  Competent Person's Report ("CPR") resource audit by Netherland Sewell & Associates Inc.

·    TOTAL GROSS AUDITED ON-BLOCK BARRYROE 2C RECOVERABLE RESOURCES OF 346 MMBOE

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 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 which is located in Standard Exploration Licence (SEL) 1/11 and Licensing Option (LO) 12/4, lies in c. 100 metre water depth and is c. 50 kilometres off the south coast of Ireland.

Following acquisition and interpretation of the new 2011 3D seismic data together with the subsequent drilling and testing of the 48/24-10z Barryroe appraisal well in 2012, Providence retained the services of Netherland Sewell & Associates Inc. (NSAI) to carry out a third party contingent resource audit (CPR) of the in place hydrocarbon and recoverable resources for the Basal Wealden oil reservoir. NSAI have reported that the Basal Wealden oil reservoir has a 2C in-place gross on-block volume of 761 MMBO with recoverable resources of 266 MMBO and 187 BCF of associated gas, based on a 35% oil recovery factor.

A third party (CPR) audit of the overlying Middle Wealden, which was carried out by RPS Energy (RPS) in 2011, reported a 2C in-place gross on-block volume of 287 MMBO with technically recoverable resources of 45 MMBO and 21 BCF of associated gas, based on a 16% oil recovery factor.

The total combined audited gross on block 2C recoverable resources at Barryroe therefore amount to 346 MMBOE, comprising 311 MMBO and 207 BCF.

The following table summarises the range of total gross audited on-block Barryroe oil resources:

	1C	2C	3C
	(MMBO)	(MMBO)	(MMBO)
Basal Wealden STOIIP (NSAI)	338	761	1,135
Basal Wealden Recoverable (NSAI)	85	266	511
Middle Wealden STOIIP (RPS)	31	287	706
Middle Wealden Recoverable (RPS)	4	45	113
TOTAL STOIIP	369	1,048	1,841
TOTAL RECOVERABLE OIL RESOURCES	89	311	624

Note: The table above excludes recoverable solution gas (i.e. 207 BCF or 34.5 MMBOE in the 2C case)

Further incremental resource potential has been identified in logged hydrocarbon bearing intervals within stacked Lower Wealden and Purbeckian sandstones which Providence has previously estimated contains total associated P90, P50 & P10 in place oil resources of 456 MMBO, 778 MMBO & 1,165 MMBO respectively. As there is currently limited reservoir and well test data available over these two intervals, future well data over these specific zones would be required in order to firm up their associated final recoverable resource estimates.

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

"This is another very positive step for Barryroe. This third party resource audit by Netherland Sewell & Associates further validates the significant volumetric and recoverable resources of the Basal Wealden oil reservoir in the Barryroe Field, which Providence first reported on last summer. In addition, the audit has demonstrated that there are significant volumes of associated gas in solution.

Having now completed this audit, and having finalised Phase 2 development planning with Mott MacDonald, we will now proceed with our planned farm out discussions, where we have already received significant international industry interest. Finally, Providence will continue to work on the material resource potential associated with the Lower Wealden and Purbeckian logged hydrocarbon bearing reservoir intervals, which were encountered by previous wells drilled on the field."

For further information contact:

San Leon Energy plc	[phone]
Oisin Fanning, Executive Chairman
Westhouse Securities Limited	[phone]
Richard Johnson Antonio Bossi
Macquarie Capital (Europe) Limited	[phone]
John Dwyer
Fox Davies Capital	[phone]
Susan Walker Daniel Fox-Davies
FirstEnergy Capital LLP	[phone]
Hugh R. Sanderson David Van Erp
College Hill Associates	[phone]
David Simonson Rupert Trefgarne Alexandra Roper

www.sanleonenergy.com

 

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