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If we get a positive update.....if...., then I reckon that if they decide to drill downdip and if (again)....they get an even bigger payzone, then the recoverable reserves should double !....too much guesswork perhaps.....just hoping that we are not going to be disappointed but the signs look favourable, if some of the sources are reliable.

Seems to be going well!

Mna, Looking for 7Euro/£6 on final issue of flowtests here.

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All boats to be lifted in rising tide of Black Gold!

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Hermana,
Congratulations!

How much does 3514 BOPD equate to in terms of recoverable oil?

Thanks and best wishes.

Big success......Ireland has oil !.....and there is probably a lot more around the other side on the atlantic margin.....great result ....

Providence Resources reveals significantly better than expected results from Barryroe
7:01 am by Ian Lyall

Providence Resources (LON:PVR) weighed in with significantly better than expected drilling results from its appraisal well on the Barryroe Field in Ireland’s Celtic Sea.

The well flowed 3,514 barrels of highly mobile light sweet crude a day, or the equivalent of 4,000 barrels if gas is included.

This is more than double the 1,800 barrel figure deemed to make the field economic.

Providence is the operator of the field with 80 per cent, while Lansdowne Oil & Gas (LON:LGOP) has the remaining 20 per cent.

The results mean Barryroe has delivered the first ever commercial flow rates from an offshore block in Ireland.

Providence chief executive Tony O’Reilly said: “We are pleased to report flow rates of 3,514 barrels of oil a day, which materially exceed our stated pre-drill target of 1,800 barrels.

“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 and processing, rig procurement, drilling & testing) within such a challenging 15 month timeline.”

Besides the flow rate, there were a number of other positive surprises in today’s announcement.

The data reveals that the Barryroe discovery is not only bigger than first thought, but also thicker. This of course will have a direct impact when the company updates its reserves.

An independent audit carried out by RPS Energy indicated there are between 373 million barrels of proved and probable reserves and 893 million barrels of proved, probable and possible, or P10 reserves.

Meanwhile, the wax content of the crude was lower than anticipated, while the viscosity at 0.68 centipoises is lower than water.

The latter is an important point as it signals the oil would also be suitable for future water flood of the reservoir, which would materially increase potential recovery rates.

http://www.proactiveinvestors.co.uk/companies/news/40269/providence-resources-reveals-significantly-better-than-expected-results-from-barryroe-40269.html

190mbo.

ASSuming we get only 50% of it (95mbo), and 80% is PVR's (76 mbo) and taking out all other factors (50% = 38mbo)and assuming 30 $/ barrel, we are looking at a revenue of $1billion, am I getting this wrong?

Any comments on this?

Field is estimated 900m barrels with a recoverability factor of 14-16%(conservative). Leaves PVR with a possible 190m barrels.

Someone said share price would double with positive RNS,has not happened, will s.p. increase with future revised valuations etc.,any views.

From UK Analyst Evening Stockmarket report:

"Ireland is a step closer to increasing its oil production thanks to Providence Resources' (PVR) work in the North Celtic Seas Basin. The Barryroe appraisal well generated stabilised flow rates of 3.500 barrels of oil a day (bopd), almost twice the company's 1,800 bopd target, the minimum required for the well to be classed as commercially viable. Shares in Providence, the operator and 80% owner of the prospect, surged 52p to 482p, while those in 20% shareholder Lansdowne Gas and Oil (LOGP) inched 1p higher to 55.75p. "

Davy Research


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Providence Resources
(PRP ID)
Production up to best expectations and more besides
15 March 2012
Job Langbroek
Closing Price: 515c

FACTS: Providence Resources has announced (March 15th) that the Barryroe well (48/24-10z) has flowed at a rate of 3,514 bopd, rising to 4,000 boepd when the associated gas is taken into account. The oil and gas was produced from a 24ft net reservoir section in the lower Wealden basal sand. The oil has a wax content of 20% but is light, at 42 degrees API. A second gas-bearing interval will also be tested when the gas will be co-mingled with the deeper, more oily section. Providence has an 80% stake in Barryroe with Lansdowne Oil & Gas holding the balance.

ANALYSIS: The Barryroe well was drilled close to a Marathon well (48/24-3) drilled in 1990 which flowed oil at just over 1,500 bopd. Barryroe was designed to provide as much data as possible on this earlier discovery and also to demonstrate that the oil could be produced commercially.

Considerable data has been garnered and the important process of calibrating the recently acquired 3D seismic to the actual rock characteristics in the well can now proceed. However, the really impressive thing about Barryroe is that the viscosity measurement and the much higher-than-expected flow rates suggest that the oil is extremely mobile. While this mobility has been facilitated by the use of vacuum insulated tubing (VIT), which ensures that the oil stays at temperatures well above the pour point, no artificial lift was employed. The oil rate of 3,500 b/d is nearly twice the 1,800 b/d taken as the economic threshold before the well was drilled.

Another important feature of this well is that the thickness of the sand and the ability to demonstrate lateral continuity (by combining the well result with the 3D seismic programme) suggest that the Basal Wealden has the potential for substantial quantities of oil. Pre-drill expectations were based on an independent report which suggested that the combined Barryroe middle and lower Wealden contains close to 59m barrels of recoverable oil (P50 basis) — in fact, the lower Wealden contribution was minimal in this analysis. Given that all the data from this well are actually sourced from the lower Wealden, the current well suggests that this is a conservative estimate.

DAVY VIEW: So far, this well has been up to best expectations and should provide an initial platform to pursue a commercial development of the Barryroe reservoirs. Taking into account its new equity position at 80%, we value Barryroe at 369p per share risked (462p unrisked) using the conservative 59m barrel assumption. However, this is just part of an overall Irish offshore portfolio that should now be more a more attractive overall package. Consequently, we now value the group in total at £11.60 (risked) per share (formerly £9.87). Apart from the much-better-than-hoped-for flow rates, the real success of Barryroe might well be that it kicks-starts the Irish offshore in earnest with all the positive implications that has for Providence and its partners.

Providence says the well result could also have ancillary benefits as other oil companies seek to buy acreage offshore Ireland. O'Reilly expects approaches "because we're the biggest acreage holder offshore Ireland so hopefully people will come and talk to us and that will be good news for our shareholders as well."

Providence is likely to sell part of its 80% stake in the Barryroe field to get it into development, he said, adding that offers have been made. "We see ourselves more as a front-end exploration and initial appraisal company, so we should leverage the relevant capabilities of development-focused companies to help us exploit the resources," O'Reilly said.


I like the bit OFFERS have been made

Ireland oil strike raises hopes for exploration boom
Providence Resources boss Tony O'Reilly Junior said: 'I think this discovery also creates a reappraisal in the minds of global oil corporations about coming back to Irish waters to drill for oil'

Henry McDonald in Dublin
guardian.co.uk, Thursday 15 March 2012 15.51 GMT [

Providence Resources oil rig operating in Barryroe, off County Cork. The company's oil is expected to trigger an oil exploration boom in the Republic.

Oil has been struck off the County Cork coast in a potentially multibillion-pound discovery that could help to drag Ireland's recession-stricken economy out of the mire.

Dublin-based Providence Resources announced on Thursday that oil has successfully started to flow from its Barryroe well in the first big find in Irish territorial waters.

The oilfield, which is about 50 kilometres off the Cork coast, has a flow of more than 3,500 barrels a day, a number which exceeds the company's original projections of 1,800 barrels.

One recent audit of the area found that it might contain the potential to produce almost 1bn barrels of oil, making the field worth billions at today's crude prices of well over $100 a barrel.

The test area off the Cork coast covered 300 sq km, which according to Providence is equivalent to a medium-to-large North Sea oil field. The oil was discovered at a depth of about 100 metres in the sea bed.

Successful drilling at the Barryroe well will increase pressure on the Irish government to grant permission for oil exploration at five further sites in Irish waters. These include the most controversial site, at Dalkey Island in Dublin Bay, close to an exclusive stretch of the capital's coastline which is home to Irish rock stars such as Bono and Enya.

If an oil rig were constructed near the uninhabited island it would be in the line of sight of homes belonging to celebrities on Dublin's so-called "gold coast". An alliance of community groups in one of the richest parts of Ireland as well as conservation groups such as Birdwatch Ireland and An Taisce, the republic's National Trust, are understood to be planning a campaign against the drilling project. The island is home to a seal colony and the waters around it are used for fishing pollock and mackerel as well sea diving.

Providence Resources, whose chief executive is Tony O'Reilly Jr, the son of the former boss of Independent News and Media, said it was pleased the flow rates from Barryroe were higher than the pre-drilling target.

O'Reilly said the discovery was a "seminal day for Ireland, especially in the runup to St Patrick's Day". Of the higher than expected oil flows he said: "As the Americans say, 'We didn't hit a home run, we knocked the ball out of the park'. I think this discovery also creates a reappraisal in the minds of global oil corporations about coming back to Irish waters to drill for oil. Irish territorial waters are massively under-explored." The oil was of good quality, described as "light but waxy crude".

O'Reilly said the company was exploring for oil in Northern Ireland near Rathlin Island and he hoped the Barryroe find would lead to the creation of an onshore oil industry in Ireland.

"We've always said as an Irish company we want to use as much Irish infrastructure and resources as we can. We don't have an oil industry in Ireland at present but I hope something like Barryroe and the success we are getting in that will thrive more interest in creating more of an infrastructure in Ireland."

While the find is small by the standards of the Middle East or even the North Sea it could reduce the republic's national energy bill and have a significant spinoff for the entire economy.

Ireland is heavily dependent on imported oil and gas. The Irish Offshore Operators' Association points out that more than 90% of Irish gas is imported while oil accounts for nearly 60% of overall Irish energy consumption.

Fergus Cahill of the Irish Offshore Operators' Association said: "It's very encouraging and positive. First of all it's the first discovery in Irish waters that looks to be declared commercial. The flow rates are encouraging. Secondly, it will encourage other explorers because one of the problems that have dogged Ireland has been the explorations in the past. Almost all of these discoveries were of gas, not oil. If it gets developed, which we hope it will, it will reduce our dependency on imports, increase taxation revenue and create jobs."

The Irish exchequer will benefit from the potential oil boom as the republic's department of finance gains a 25% tax take from any oil or gas revenues.

Offers from who is the question?