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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?

Tesco, Asda, Sainsburys....could be anybody......perhaps even Chevron...or BP...etc..

Expecting offers for "this full bodied Claret".

I prefer burgundys myself.

Anything but tar pour moi!

Resource Upgrade within months at Barryroe and over 60 enquiries from Aberdeen about it according to today's Irish Independent.

The discovery of Ireland’s first commercial oilfield has raised the hope that the country’s ailing economy might be revived. Possibly worth $110bn at yesterday’s prices, the wealth is comparable to the €85bn emergency bailout arranged for Ireland in 2010. The find, about 30 miles off Cork, was announced yesterday by Providence Resources, which owns 80% of the field. “It’s just like winning the lottery,” said the chief executive, Tony O’Reilly Jr, whose father is the tycoon who owns Independent News and Media. “It’s a defining moment for the Irish offshore oil and gas industry,” said Mr O’Reilly, who added that it could bring about an Irish oil bonanza and help to remove Ireland’s almost complete dependence on imported energy. More than 90% of its gas comes from overseas, and oil accounts for nearly 60% of energy use overall, the Irish Offshore Operators’ Association said, The Times reports.

Oil production at Ireland's first commercial discovery could reach as high as 20,000 barrels a day when production commences at the Barryroe field in the next three years. Yesterday, Providence Resources chief executive Tony O'Reilly Jnr confirmed Wednesday's Irish Examiner story that a commercial oil field had been discovered. Providence Resources technical director John O'Sullivan said that depending on the production strategy deployed, the field could produce as much as 20,000 barrels per day (bopd). The UCC geology graduate said they may utilise horizontal wells to give better access to the 300 sq km oil field - equivalent to a medium to large North Sea oil field. Mr O'Reilly said flow rates of 3,514 bopd had been discovered at 100-metre depth in the North Celtic Sea Basin. "The well has also confirmed that the basal sands are laterally continuous, highly productive and that the oils are of a very high quality," he said. This is twice the 1,800 bopd target set by Providence as being large enough to deem it a commercial find. Mr O'Reilly, whose family owns a 20pc stake in Providence, said the company was looking to upgrade the total field estimates, standing at 60 million barrels of recoverable oil. "Hopefully those resource figures will increase and the recovery factor will increase and allow us to have substantial production... we haven't put out any numbers though we do feel that there is an opportunity for an upgrading in the size of this accumulation," he said. Mr O'Sullivan said the 500 bopd equivalent in gas, which the well is throwing off, would be used to power a production oil rig. Any spare capacity could be diverted to the gas pipeline serving the Seven Head Gas Filed, just 3km from Barryroe discovery. The Irish Examiner

Providence And Lansdowne Deliver Ireland’s First Commercial Offshore Oil Flows

No doubt there were a few champagne corks popped in Dublin on Thursday when Irish resource company Providence Resources delivered the first ever commercial oil flows offshore Ireland. This event has been many years in the making: the Barryroe field in the Celtic Sea, which underlies the Seven Heads gas field, was first discovered in 1974 by Esso but technical challenges, low oil prices and regulatory terms conspired to hold back its development. AIM-quoted Providence, however, which only took over operatorship in late 2010, saw that times had changed and that Barryroe was now ripe for development as long as its waxy crude could flow at commercially viable rates.

That question has now been comprehensively answered, with the 48/24-10z appraisal well, the sixth on the field, flowing 3,514 barrels of oil per day and 2.93 million cubic feet per day (4,000 barrels of oil equivalent per day). The wax content is 20 per cent but the crude is light (42 degree API) and highly mobile. In fact, the oil quality is better than expected; the company had thought the wax content would be slightly higher and did not expect the viscosity to be as low as 0.68 centipoises (which is lower than water) – this means the field could be a candidate for future water flood which would, the company says, “materially” increase recovery rates. Faulting is also relatively low compared to the overlying Seven Heads gas field, where unexpected compartmentalisation impacted production rates and sank project operator Ramco Energy.

Barryroe’s highly commercial flowrate – much higher than the 1,800 bpd anticipated and the 1,300 to 1,600 bpd delivered by earlier exploration and appraisal wells – came from only a 24 feet thick net pay interval in the oil-bearing basal Wealden sandstone (and rates were constrained by equipment limitations) with the upper gas-bearing basal reservoir section now being prepared for testing. High angle production wells could actually deliver even higher rates than this simple vertical well.

As a company briefing note puts it, “in layman terms, it’s bigger in overall size, thicker in reservoir intervals and with much better flow rates than we had hoped for”.
Importantly, the company says the well confirms that this basal sand reservoir is continuous and the oil water contact much deeper than previously thought. This all has implications for the reserve potential. The primary basal sandstone reservoir spans some 300 sq km, about the size of medium to large North Sea oilfield.

Chief executive Tony O’Reilly, who at last month’s oilbarrel.com conference delivered an upbeat assessment on the future for Ireland’s offshore industry after many decades of disappointment, said the well had confirmed that the basal sands were laterally continuous and highly productive. Prior to this well, RPS Energy gave the field P50 and P10 oil-in-place estimates of 373 million barrels of oil and 893 million barrels respectively. The 2C technically recoverable contingent resource was put at 59 million barrels. Providence has an 80 per cent interest alongside fellow AIM company Lansdowne Oil & Gas with 20 per cent (another AIM company, San Leon Energy, gave its 30 per cent interest in Barryroe to Providence in return for a 4.5 per cent net profit interest on the field).

Now work begins to move the field towards development using horizontal wells with artificial lift. The first step is to complete testing of the upper gas zone and suspend the well for future use. Development modeling will get underway, as will permitting. Providence is also seeking to bring in farm-in partners to reduce its capex exposure and ensure there are the right skills in place to handle the offshore development.

This is good news for the co-venturers, which both saw their shares advance on the news, and for cash-strapped Ireland, which in late 2010 took an IMF bailout to stave off bankruptcy. As O’Reilly told delegates at oilbarrel.com last month, the Irish offshore has seen a number of false dawns in recent decades, with sporadic bursts of exploration over that time yielding a number of discoveries but only the Kinsale Head, Ballycotton and Seven Heads gas fields have actually made it into production. That all changes with this positive oil test.

“There are a number of legacy discoveries offshore Ireland – unconventional and straightforward – that may now be taken much more seriously,” said analysts at Dublin stockbrokers Davy. “Providence is particularly well poised to avail of this opportunity with the foremost licence position offshore Ireland.”

Providence certainly plans to play the role of catalyst when it comes to the Irish offshore. Barryroe is the first in a two-year multi-well, multi-basin US$500 million drilling campaign, the largest ever offshore Ireland (Providence will be on the hook for US$80 to US$120 million of this). The potentially game-changing work programme, which will really put Ireland on the oil and gas map, will include a rank exploration well at Dalkey Island offshore Dublin (with a planned spud in Q3), an appraisal well on the Dragon gas field in the East Irish Sea, drilling on Rathlin Island in Northern Ireland and then the big stuff off the west coast, Spanish Point, where there’s a potential 200 million boe recoverable resource, and the “uber-giant”, Dunquin, which could hold 1.7 billion boe.

Back Print this news item

http://oilbarrel.com/news/providence-and-lansdowne-deliver-irelands-first-commercial-offshore-oil-flows

Been a superb week for them.....bit of a waiting time till the next spud....and this coming year will be exciting...