Barryroe Core Analysis

RNS Number : 8284F

Lansdowne Oil & Gas plc

21 June 2012

 



June 21st, 2012                                                                                                         

BARRYROE

TECHNICAL UPDATE

·   RESERVOIR CORE ANALYSIS COMPLETED

o PERMEABILITIES IN BASAL OIL BEARING RESERVOIR INTERVAL EXCEED EXPECTATIONS

o GOOD PERMEABILITIES ALSO  CONFIRMED IN SECONDARY LOGGED HYDROCARBON BEARING SAND

·   CONFIRMATION OF MARINE INFLUENCE IN LOWER PART OF WEALDEN DEPOSITIONAL SETTING

Lansdowne Oil & Gas plc, ("Lansdowne"), the AIM listed oil and gas exploration company, welcomes the announcement today of the technical update by Providence Resources plc ("Providence") on the successful Barryroe appraisal well 48/24-10z in the North Celtic Sea. Lansdowne has a 20% interest in the Barryroe project.

The announcement by Providence as operator stated the following:

"Permeability analysis of side wall cores carried out by Corelab over the basal oil bearing interval in the recent 48/24-10z Barryroe appraisal well has now been completed. These analyses have confirmed average reservoir permeability in the basal oil bearing reservoir sands of c. 600 mD, confirming the high productivity nature of this reservoir interval as observed during well testing operations. In addition, analysis of cores from overlying secondary reservoir sands, which were logged as hydrocarbon bearing in the 48/24-10z well, has demonstrated permeabilities of up to c. 100 mD. These secondary sands are thinly developed at the 10z well location but they thicken significantly to the west, where previous logging by a previous operator shows porosities of up to c. 30% (ref. Esso-operated 48/23-1 Barryroe well.)

Third party micro-paleontological studies have now revealed the presence of a significant marine flooding surface within the lower part of the Wealden section, confirming that the environment of deposition had more of a marine influence than previously considered. Log motif analysis also shows that the deposition of the basal oil bearing sand may have been in a distributary channel setting as part of a broad delta plain which would support the evidence of marine influence.

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

"It is pleasing to note that the post well analysis from Barryroe keeps on getting better. The results of the sidewall core analysis are very positive as they confirm the high productivity nature of the main oil bearing basal reservoir interval. The permeability data from the overlying secondary reservoirs is welcome news as previously we had no information as to their potential productivity. These sands are now likely to add further resource potential to Barryroe. The evidence for marine influence in the lower part of the Wealden is consistent with the previous Esso-Marathon core analysis, which suggested the basal reservoir interval to have been deposited in a delta plain setting. With the completion of these post well studies, in conjunction with all the other post well works that have now been carried out, we look forward to providing a revised resource update for Barryroe later this summer."

Contacts

Lansdowne Oil & Gas plc
Steve Boldy	Chief Executive Officer	[phone]
Chris Moar	Finance Director	[phone]
finnCap
Sarah Wharry	Corporate Finance	+ 44 20 7220 0500

About Lansdowne

Lansdowne is an exploration and appraisal oil and gas company listed in London on the AIM Market (Symbol : LOGP). Lansdowne holds a balanced portfolio of oil discoveries, low and moderate risk gas prospects near existing infrastructure and moderate risk oil prospects. The Company is focused on the underexplored North Celtic Sea Basin which has proven petroleum systems in place for both oil and gas. For more information, visit the Company's website: www.lansdowneoilandgas.com 

About Barryroe

The Barryroe licence lies directly below the Seven Heads Gas Field and has previously been successfully tested at flow rates of 1,300 and 1,500 BOPD from the Middle Wealden and 1,600 BOPD from the basal Wealden, from three exploration and appraisal wells. The reservoir sands are of Cretaceous Middle and Lower Wealden age located between c. 4,500' TVDSS and 7,550' TVDSS. The oil is light (30 to 42^o API) with a wax content ranging from 12 to 22 per cent. Lansdowne holds an 20% interest in the licence, which is operated by its partner Providence Resources Plc (80%).

On March 15^th Providence announced the results of DST 1B which confirmed the successful testing of the lower basal 24' net oil bearing interval, which flowed c. 3,514 BOPD & 2.93 MMSCFGD (c. 4,000 BOEPD), On March 23^rd, an additional 17' thick net gas bearing section was perforated to test the potential of the upper part of the basal Wealden sandstone section. The surface test spread equipment was optimized for the lower oil zone test and was therefore equipment constrained on this gas zone test, which achieved highly productive flow rates of c. 7 MMSCFGD & 1,350 BOPD (c. 2,516 BOEPD) through a restricted 36/64" choke, with a flowing well head pressure of c. 1,700 psig. The productivity of the gas bearing interval far exceeded expectations and thereby constrained the ability to fully open the well up to its maximum potential. Preliminary modeling of the pressure data indicates that a co-mingled flow rate of c. 17 MMSCFGD & 3,350 BOPD (c. 6,183 BOEPD) at a flowing well head pressure of c. 500 psig is achievable.

In 2010 a third party audit carried out by RPS Energy for Lansdowne Oil & Gas plc indicated combined Middle and Lower Wealden P50 and P10 STOIIP estimates for Barryroe of 373 MMBO and 893 MMBO, respectively. The corresponding 2C and 3C Barryroe technically recoverable contingent resources are 59 MMBO and 144 MMBO, respectively. These figures are subject to revision upwards due to the results of the testing of the 48/24-10z well and the ongoing post well studies. 

In 2011, Providence entered into a MOA with Shell Trading and Marketing to agree an oil off-take agreement for future Barryroe oil production.

Glossary

TVDSS - True Vertical Depth Subsea

^o API - Measurement Of Oil Gravity                                                                          

BOPD - Barrels of Oil per Day

BOEPD - Barrels of Oil Equivalent per Day

MMSCFGD - Millions of Standard Cubic Feet of Gas per Day

SCF/STB - Standard Cubic Feet/Stock Tank Barrel

PSIG - Pounds per Square Inch Gauge

Qualified Person Review

This release has been reviewed by Stephen Boldy, Chief Executive of Lansdowne, who is a petroleum geologist with 31 years' experience in petroleum exploration and management. Dr. Boldy has consented to the inclusion of the technical information in this release in the form and context in which it appears.

 

END

 

 

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