Barryroe Well

RNS Number : 4092Z

San Leon Energy PLC

15 March 2012

 



15th March 2012

San Leon Energy Plc

("San Leon" or the "Company")

Barryroe well successfully flows oil and gas

San Leon, the fast growing oil and gas company with an extensive portfolio of assets across Europe and North Africa, notes the announcement this morning from Providence Resources plc ("Providence") updating on the Barryroe well.  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 SUCCESSFULLY FLOWS OIL AND GAS

·     WELL FLOWS AT A STABILISED RATE OF 3,514 BOPD & 2.93 MMSCFGD (4,000 BOEPD)

·     ANALYSIS CONFIRMS HIGHLY MOBILE LIGHT SWEET OIL

·     UPPER GAS BEARING ZONE BEING PREPARED FOR TESTING

Providence Resources P.l.c., ('Providence') the London (AIM) and Dublin (ESM) quoted oil and gas exploration and production company is pleased to provide an operational update on its ongoing well operations in the North Celtic Sea Basin, offshore southern Ireland. The 48/24-10z Barryroe appraisal well is located in c. 100 metre water depth, c. 50 kilometres offshore Ireland in Standard Exploration Licence (SEL) 1/11 in the North Celtic Sea Basin. Providence (80%) operates SEL 1/11 on behalf of its partner Lansdowne Oil & Gas plc (20%).

A 24' thick net pay interval in the oil bearing basal Wealden sandstone section was perforated as the first phase of the well testing programme. Stabilized flow rates of 3,514 BOPD & 2.93 MMSCFGD (4,000 BOEPD) were achieved through a 68/64" choke with a well head pressure of 517 psia without the use of artificial lift. The well was tested using vacuum insulated tubing over just the upper c. 2,600' of the total c. 7,400' test string length due to equipment availability constraints. As expected, laboratory reservoir fluid analysis confirms that the oil is light with a gravity of 42o API and a wax content of 20%. The oil is highly mobile with an in-situ reservoir viscosity of 0.68 centipoises and a gas-oil ratio of c. 800 SCF/STB.

The upper gas bearing basal reservoir zone is currently being prepared for testing and flow rates from this section are planned to be comingled with the basal oil zone to assess any additional flow rate potential. After these operations are completed, it is planned to suspend the well for potential sidetrack drilling. All data obtained from these operations will be integrated with the 3D seismic acquired in 2011.

Commenting on today's announcement, Tony O'Reilly, CEO of Providence said:

"We are pleased to report flow rates of 3,514 BOPD which materially exceed our stated pre-drill target of 1,800 BOPD. The well has also confirmed that the basal sands are laterally continuous, highly productive and that the oils are of a very high quality. Our comprehensive wire-line logging programme has revealed the seismic signature of the basal sands and can therefore be used to map these intervals directly in the 3D seismic volume for field volumetric determinations and sidetrack well planning. The most recent development planning carried out by RPS Energy cites the use of high angle oil production wells which should provide significant incremental production potential over this simple vertical well.

"Given that we only assumed operatorship of Barryroe in late 2010, I would like to pay tribute to all of the team members who have helped to deliver such a successful outcome to this programme (site survey, 3D acquisition/processing, rig procurement, drilling & testing) within such a challenging 15 month timeline."

For further information contact:

San Leon Energy Plc	Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
Macquarie Capital (Europe) Limited	Tel: [phone]
Paul Connolly John Dwyer Westhouse Securities Richard Johnson Antonio Bossi	Tel: [phone]
College Hill Associates	Tel: [phone]
Nick Elwes

www.sanleonenergy.com

 

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