IRELAND - CELTIC SEA BASIN - SEL 1/11 & LO 12/4

Standard Exploration Licence 1/11

BARRYROE OIL Project (80%, Operator)

The Company holds an 80.0% working interest in SEL 1/11 which contains the Barryroe oil field. The licence is located in the North Celtic Sea Basin, offshore southern Ireland and is adjacent to the PETRONAS operated Kinsale Head gas field. The Company acts as Operator with Lansdowne (20.0%). 

In the past, under different operators, five wells were successfully drilled on Barryroe. All of these wells successfully logged hydrocarbon-bearing reservoirs with three successfully flowing oil to surface. In 2011, having acquired new 3D seismic over the field, the Company and Lansdowne drilled a sixth well on this areally extensive field. In March 2012, the Barryroe partners announced the flow rates from this well, results which far exceeded pre-drill expectations with oil rates in excess of 3,500 BOPD from a 7-metre vertical section of reservoir. 

Post-well analysis, in conjunction with the new 3D seismic data set, led to a substantial upgrade in the field size to over 1 billion barrels in place (2C). Subsequent work on multiple development concepts, together with detailed engineering studies on recovery factors, led to estimated 2C recoverable resources of over 300 million barrels of oil from the two main tested reservoir intervals.

In April 2013, a Competent Persons Report was issued by Netherland Sewell & Associates Inc. confirming the Company’s previously published figures on the main basal sandstone reservoir. In conjunction with a previous audit carried out by RPS Energy on the overlying secondary Middle Wealden reservoir, the total upgraded resource base at Barryroe is listed in the table below.

 

TABLE: Total gross audited on-block Barryroe oil resources.

 

  1C (MMBO) 2C (MMBO) 3C (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 also been identified in logged hydrocarbon bearing intervals within stacked Lower Wealden and Purbeckian sandstones, which the Company estimates contain total associated P90, P50 & P10 in place oil resources of 456 MMBO, 778 MMBO and 1,165 MMBO, respectively. In 2014, the area of SEL 1/11 was increased by c. 160 km2 to provide for possible extensions of the Barryroe oil field beyond the area previously licensed.

Post the publication of the CPR, Rothschild were appointed advisors and a farm-out process commenced with the objective of bringing in a suitably qualified company to advance the Barryroe project towards field sanction/development. Noting the evolving market conditions for capital expenditure reductions, in April 2014, the Company revised the original field development plan to a smaller, staged development programme, building up to full field development (with projected ultimate production rates of up to 100,000 BOPD). The phased development programme targets an initial peak production rate of c. 30,000 BOPD, with substantially reduced initial capital expenditure and an accelerated timeline to get to first oil.

In November 2015, the area of SEL 1/11 was further increased by 118 km2 to accommodate for mapped extensions of the Barryroe accumulation into the adjacent Licensing Option 12/4 which had expired. The Barryroe partners were also granted a 2-year extension to the current phase of the Barryroe licence (SEL 1/11) to July 2017 as well as an extension to the term of the 2nd phase to July 2019.

The Company continues discussions with a number of companies, who are currently active in the data room process, and the recent rise in oil prices, combined with the benefits of a lower operating and capital cost base, provide a much better background environment for the Company to conclude commercial matters.

Further announcements regarding Barryroe will be issued in due course as appropriate.

 

Exclusive Option Agreement, southern portion of OPL1

In December 2015 the Company announced that, through its wholly owned subsidiary, Exola, it had entered into an exclusive option agreement with KEL over the southern portion of OPL 1.

Under the terms of the Option, Exola will have the right to earn a 60.0% working interest in the area relating to the Option through the 100.0% funding and drilling of an exploration well.

The Option is exercisable for a period of 3 years and is at the sole discretion of Exola, with any future assignment of equity in respect of the Option, being subject to the approval of the Irish government.

Related press release - 2016

9 November 2016
UPDATE ON SUPREME COURT APPLICATION - APPLICATION FOR PERMISSION TO APPEAL REFUSED
21 October 2016
COMMERCIAL COURT RULING ISSUED - PROVIDENCE SUCCESSFULLY DEFENDS TRANSOCEAN’S PART 36 COSTS APPLICATION
18 February 2016
ASSET PORTFOLIO UPDATE - CELTIC SEA BASINS

Related press release - 2015

3 December 2015
COMMERCIAL UPDATE - PROVIDENCE GRANTED EXCLUSIVE OPTION TO ACQUIRE A 60% INTEREST IN THE SOUTHERN PORTION OF OPL 1 IN THE NORTH CELTIC SEA BASIN FROM PSE KINSALE ENERGY LIMITED
3 November 2015
LICENCE UPDATE - STANDARD EXPLORATION LICENCE 1/11, BARRYROE OIL FIELD
9 February 2015
MARKET UPDATE

Related press release - 2014

7 August 2014
LICENCE UPDATE - BARRYROE OIL PROJECT, NORTH CELTIC SEA BASIN, OFFSHORE IRELAND
15 April 2014
BARRYROE FARM OUT - UPDATE
18 February 2014
LICENCE UPDATE - BARRYROE OIL FIELD, NORTH CELTIC SEA BASIN

Related press release - 2013

5 April 2013
BARRYROE OIL FIELD - TECHNICAL UPDATE - CPR

Related press release - 2012

12 October 2012
BARRYROE TECHNICAL UPDATE - RESERVOIR ANALYSIS UPDATE
5 September 2012
BARRYROE UPDATE - ADDITIONAL OIL IN PLACE RESOURCE ESTIMATES FOR TWO NEW RESERVOIR INTERVALS
9 August 2012
PROVIDENCE OFFERED NEW LICENSING OPTION ADJACENT TO BARRYROE
25 July 2012
BARRYROE - OIL IN PLACE RESOURCE UPDATE
21 June 2012
BARRYROE TECHNICAL UPDATE - GEOLOGICAL DATA
6 June 2012
TECHNICAL UPDATE - BARRYROE OIL ASSAY COMPLETE
24 May 2012
BARRYROE WELL TEST ANALYSIS CONFIRMS PRODUCTIVITY POTENTIAL
10 May 2012
BARRYROE SEISMIC INVERSION STUDY CONFIRMS SIGNIFICANT AREAL RESERVOIR POTENTIAL
23 March 2012
BARRYROE WELL TESTING UPDATE
15 March 2012
BARRYROE WELL SUCCESSFULLY FLOWS OIL AND GAS
27 February 2012
BARRYROE APPRAISAL WELL OPERATIONAL UPDATE
9 February 2012
BARRYROE APPRAISAL WELL - OPERATIONAL UPDATE

Related press release - 2011

23 December 2011
STANDARD EXPLORATION LICENCE 1/11 - INCREASE IN EQUITY IN BARRYROE
14 December 2011
BARRYROE 48/24-10 APPRAISAL WELL - INTERIM UPDATE - DRILLING OF PRIMARY AND SECONDARY OIL OBJECTIVES IMMINENT
21 November 2011
CELTIC SEA DRILLING UPDATE - COMMENCEMENT OF DRILLING AT BARRYROE
7 November 2011
DELIVERY OF ARCTIC III RIG FOR BARRYROE APPRAISAL DRILLING PROGRAMME, OFFSHORE IRELAND
19 October 2011
2011 CELTIC SEA DRILLING UPDATE
4 July 2011
OPERATIONAL UPDATE - PROVIDENCE COMPLETES BARRYROE 3D SEISMIC SURVEY
8 June 2011
PROVIDENCE COMMENCES 3D SEISMIC SURVEY OPERATIONS OVER THE BARRYROE OIL DISCOVERY IN THE NORTH CELTIC SEA
18 April 2011
PROVIDENCE SECURES RIG FOR IRISH OFFSHORE DRILLING PROGRAMME
7 March 2011
PROVIDENCE CONTRACTS 3D SEISMIC VESSEL FOR SURVEY OVER BARRYROE OIL DISCOVERY IN THE NORTH CELTIC SEA
18 February 2011
NORTH CELTIC SEA OIL RESOURCE UPDATES
7 February 2011
PROVIDENCE AND SHELL SIGN MEMORANDUM OF AGREEMENT

Related press release - 2010

3 December 2010
PROVIDENCE INCREASES INTEREST IN BARRYROE DISCOVERY FOLLOWING ASSET DEALS WITH LANSDOWNE

Related press release - 2008

14 July 2008
PROVIDENCE NEW LICENSING OPTION AWARD