Providence steps up exploration on Barryroe

Providence Resources has become operatorship of the Barryroe oil discovery in the North Celtic Sea, offshore southern Ireland.

Offshore staff

DUBLIN, Ireland -- Providence Resources has become operatorship of the Barryroe oil discovery in the North Celtic Sea, offshore southern Ireland.

Separately, Providence has agreed to assign a 10% non-operated interest in the Helvick oil field in Standard Exploration Licence (SEL) 2/07 in the North Celtic Sea basin, to Lansdowne Oil and Gas plc (“Lansdowne”). At Helvick, the revised equity participation in SEL 2/07 will be Providence (62.5%), Atlantic Petroleum (18.333%), Lansdowne (10.0%), and Sosina (9.1667%).

Subject to approval from Ireland’s government, the revised equity partnership in Barryroe will be Providence (50%), San Leon Energy (30%), and Lansdowne Oil and Gas (20%).

The partners have started planning for a new 3D seismic survey over the eastern flank of Barryroe, which should be acquired during 1Q 2011. The results will assist studies for an appraisal/pre-development well.

Providence says previous studies have indicated that Barryroe’s complex reservoir architecture and the waxy nature of its crude could hinder development. But this could be overcome by a combination of new 3D seismic and horizontal artificially lifted well completions.

The partners have started discussions with other operators on the Irish shelf concerning rig availability for a pre-development well on Barryroe in 2011.

RPS Energy’s audit on the prospect for Lansdowne led to P50 and P10 oil in place estimates of respectively 373 MMbbl and 893 MMbbl, with corresponding 2C and 3C recoverable contingent resources of 59 MMbbl and 144 MMbbl.

12/03/2010

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