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http://www.proactiveinvestors.co.uk/companies/news/38775/providence-resources-unveils-encouraging-results-from-its-secondary-target-on-barryroe-38775.html


Providence Resources unveils encouraging results from its secondary target on Barryroe

7:18 am by Ian Lyall

Data from 48/24-10z mirrors the findings from four other wells drilled on Barryroe, including the 48/24-3 well.

Providence Resources (LON:PVR) this morning provided a highly encouraging update on its Barryroe appraisal well in Ireland’s Celtic Sea.

Results from the secondary target reveal that “hydrocarbon shows” were uncovered that potentially contain a number of secondary reservoir units.

Data from 48/24-10z mirrors the findings from four other wells drilled on Barryroe, including the 48/24-3 well.

The current well is in the east part of Barryroe and data from previous wells shows that these secondary logged hydrocarbon-bearing sands thicken to the west.

Collectively, these five wells now span a total distance of 20 kilometres and confirm the presence of “potential incremental light oil resources within this secondary interval”, Providence said.

The primary objective of the drilling, however, is the basal sands, which will be cored and tested to demonstrate commercial flow rates in the order of 1,800 barrels a day.

Well 48/24-10z is at just short of 7,000 feet, which means work will continue for “another few weeks”, according to Providence.

Chief executive Tony O’Reilly said this morning: “The 48/24-10z preliminary well results indicate the presence of hydrocarbons within the secondary objective overlying our main basal sandstone target.

“We will evaluate and integrate these well data with our newly processed 3D seismic in order to fully assess its incremental resource potential.

“Most importantly, operations to evaluate the underlying primary Barryroe reservoir objective have now commenced and we look forward to further updating shareholders once the drilling phase of the programme has been completed.”

Providence is the operator of the block with 80 per cent, and is partnered with Lansdowne Oil & Gas (LON:LOGP), which owns the remainder.

Discovered in the 1970s, Barryroe previously flowed oil at the rate of 1,400-1,600 barrels a day.

A flow rate above 1,800 barrels a day makes Barryroe economic, according to an independent report compiled by RPS, which also estimates there is 60 million barrels of crude recoverable from 373 million barrels in place.

The economics of the field show that this one development prospect could be transformational.

Based on the field’s P50 reserves – those with a 50 per cent chance or better of being recovered - the net present value for Barryroe is just over US$800 million using a 10 per cent discount rate.

Couple of weeks to go then max, for the primary target, which if good will herald significant upside for partner, LOGP

About 500 feet left to drill.

This should be the first of 3 RNS's.

First being secondary target TD reached - which it has, with oil as well as per todays RNS.

Second RNS will be when primary objective TD is reached.

Then a final RNS when testing is complete, flow etc...

Couple of weeks max, might be in 7 to 10 days.

Fox Davies comment :

Providence Resources (LON:PVR) (PVR LN, 271.0p, ▲ 1.3%) Appraisal well a technical success but is it commercial? Preliminary Results from the drilling of the 48/24-10z well indicate that the wells secondary objective had good hydrocarbon shows and a number of potential secondary units, some in communication with the nearby 48/24-3 well. Further study and a drill stem test of the primary basal sands target will be conducted to in order to ascertain flow rates and productivity of the reservoirs. While the news does not provide an uplift to the companys valuation (YET), it takes the asset one step closer to the point at which commerciality can be declared, or not. Irrespective it is good news for the basin and its operators.

Huge activity starting around the Irish coast.....should be interesting from now on....

DAVY VIEW: The news will be roundly welcomed by shareholders. After a prolonged wait, the intersection of the secondary objective above the primary zone meets a number of important early criteria. The drilling outcome so far is in line with the geological prognosis, data quality is excellent and the reservoir sands intersected are hydrocarbon-bearing. Given the proximity to the 48/24-3 well, it is a reasonable assumption that the deeper section in the current well will also meet pre-drill expectations. While the ultimate commerciality of this project depends on the rate at which the well can flow oil, the news so far provides comfort that the well is on track. Independent analysis suggests that the Barryroe prospect contains a P50 59m barrel resource of light but waxy crude. Assuming that it can be commercially produced, we value Barryroe at 113p per share risked and 287p un-risked. So far, so good and the next few weeks will tell all.

http://www.davy.ie/LR?id=2993

Dec 2011 Presentation : PDF Click here

Please note:

I see RAMPING
 &nbspevery time that
  &nbspthere is a new thread
     opened by you know who ......

       " PAPAL brown suace pants "

             &nbspI have seing it all before on the
                 RKH, CHAR, BOR, FOGL, AEX, .......

Could be on for a strong finish today, which would be good, got a few weak holders out this morning and then finish strongly.

Macho

Don't forget EOG as well.

You'll be sent to the naughty room .,.

http://www.iii.co.uk/articles/25128/barryroe-update-boosts-providence-and-lansdowne

Barryroe update boosts Providence and Lansdowne

By Sarah Modlock | Thu, 09/02/2012 - 11:36

AIM-listed partners Providence Resources (PVR) and Lansdowne Oil and Gas (LOGP) enjoyed a boost following a positive update on their Barryroe project.

The appraisal well, offshore southern Ireland, revealed hydrocarbon shows were encountered during the drilling of the section, which contains a number of potential secondary reservoir units.

Preliminary real-time logging-while-drilling (LWD) data demonstrated excellent sandstone package correlation with the nearby 48/24-3 well.

Commenting on the announcement, Providence chief executive Tony O'Reilly said: "The 48/24-10z preliminary well results indicate the presence of hydrocarbons within the secondary objective overlying our main basal sandstone target. We will evaluate and integrate these well data with our newly-processed 3D seismic in order to fully assess its incremental resource potential.

"Most importantly, operations to evaluate the underlying primary Barryroe reservoir objective have now commenced and we look forward to further updating shareholders once the drilling phase of the programme has been completed."

Providence has an 80% stake in the licence, with the remainder being held by partner Lansdowne.

The companies said that the original drilling timeline was initially set back by weather and later by rig performance issues which significantly delayed the drilling of the 12.25-inch section.

Drilling of this section recommenced on 2 February when the necessary rig repairs and maintenance programmes were completed by the rig owner.

Strong today, no surprise.

Anyone buying in yesterday is into profit - but so much more to come potentially :)

Very strong end to the day.

Decent gain already for those buying in on the recent drop, news should be very soon on the drilling to TD and by the way the share price moved and closed, the news looks to be good.

On the move again today, RNS about TD must be soon.

In and waiting.... Prosels.....

Waiting............ strong finish to the day today it looks like.

Strong burst..... looking nice.

Could SHOWTIME be with us early doors?

Yes, looks like news is soon.

We have been saying that for a few days.

One day it will be right :)

Good update out for LOGP

MIDLETON TOTAL P50 recoverable potential from 56 bcf to now 268 bcf

AMERGIN TOTAL P50 recoverable potential from 62 mmbo to now 231 mmbo



http://www.investegate.co.uk/Article.aspx?id=201202230700099310X


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And nicely moving up to the excellent news.

PVR moving up strongly, I am hoping that bodes well for the ongoing drill that PVR and LOGP are partners in.

There should (hopefully) be some news next week on reaching TD.

Well I am taking a guess that both LOGP and AEX will have news on Monday morning. Going to be an exciting week ahead.

From 6 mins in.

http://www.youtube.com/watch?feature=player_embedded&v=j_yARrMwb4o

On about Ireland, and he does seem confident on Barryroe (from 12'40" onwards)

'.......This will be Irelands first commercial oil field. Watch this space.........'



The focus on Ireland and how attractive it is might be a lead for PVR to farm into the LOGP area's, especially after the recent upgrades to the potential.

http://www.telegraph.co.uk/finance/comment/liamhalligan/9105796/Soaring-oil-prices-will-dwarf-the-Greek-drama.html

Monday 27 February 2012


........................While the escalation of any kind of tension in the Middle East is obviously a serious matter, I don't accept that is why crude prices are high. The real reason –perhaps less interesting, but no less important for that – is simple demand and supply. Global crude use is soaring, while the most important oil wells on earth are rapidly depleting.

In 2001, the world consumed 76.6m barrels of oil a day. Last year, just a decade on, global oil use was a hefty 89.1m barrels daily, 16pc higher. In 2011, the world economy was sluggish, with global GDP growth of 3.8pc, down from 5.2pc the year before. Yet world oil use still rose almost 1pc in 2011, with crude averaging $111 a barrel, more than 40pc up on 2010.

The International Energy Agency (IEA), the energy think-tank funded by oil-importing Western governments, tells us that crude demand is "declining remorselessly throughout the OECD [countries]". Given that the Western economies remain weak and the eurozone is heading for recession, the "advanced economies" are consuming less crude.

The fine print shows, though, that even IEA demand projections, which tend to be under-estimates, show OECD oil use falling just 0.9pc in 2012. Demand among the non-OECD countries, meanwhile, including the emerging giants of the East, is forecast to rise 2.8pc. Total global crude consumption, then, is still set to increase by another 1pc this year, mimicking the trend of 2011.

The "demand destruction" thesis is useful for Western governments desperate for cheaper oil – and it used to be true.

Not so long ago, OECD oil use was so important that a Western demand slow-down was enough to lower global crude prices, so helping us recover. But rampant non-OECD demand now accounts for half the world total – and rising. Chinese oil consumption has recently surged at an astonishing 7pc-8pc per annum and the People's Republic is now second only to the US in terms of overall oil use. Misguided Western attempts to print our way out of trouble using QE are also boosting crude demand and pushing up prices, as savvy investors seek an "anti-debasement" hedge.

On the supply side, while attention focuses on geopolitical flare-ups, the important trends relate to geology and finance. Since the 1960s, the discovery rate and size of new oil and gas fields has fallen markedly. More than four-fifths of the world's major fields are beyond peak production. The output of the world's largest 580 oil fields is declining at a 5.1pc annual average. Strategic oil traders now worry aloud about falling pressure at Saudi's Ghawar, Cantarell in Mexico and other giants fields. The credit-crunch, meanwhile, severely cut investment in exploration and well development, which is likely to have long term supply implications.

While there's lots of hype about tar sands and shale fuels, these new technologies often expend more energy than they create, while causing horrendous environmental and water-supply problems. Conventionally-produced crude will remain absolutely critical, and demand for it will spiral, until mankind bans the internal combustion engine, outlaws ammonium-based fertilisers, dismantles the global pharmaceutical industry and learns to live without plastic. I can't see that happening anytime soon.

Geo-political issues are important, of course. A major Gulf conflict would obviously see oil prices spike. But crude is now expensive not due to political argy-bargy but because of the fundamental truths of demand and supply. Meanwhile, Western share prices keep rising...................

Excellent news for LOGP / PVR from Barryroe.

http://www.investegate.co.uk/Article.aspx?id=20120227070028H9079


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Lovely jubbly, far better than expected and significant upside potential now :)



..........Reservoir development within this sand package is better than expected, with very good correlation of the overall sand packages with the offset 48/24-3 well.

........Indications of hydrocarbons were seen whilst drilling, and the subsequent results from wire-line logging have confirmed the presence of 41ft. of net pay (averaging 15% porosity and 87% hydrocarbon saturation), with no indication of a hydrocarbon water contact.

........Pressure data over this interval have revealed the presence of both oil and gas bearing zones, with the oil gradient being consistent to that of a light c. 40(o) API crude.

..........Preliminary pressure gradient analysis indicates that the basal sandstone could have the potential for an oil-water contact to be significantly down-dip from the current well location. It is notable that this basal sandstone package can be regionally correlated to the previous wells drilled on the Barryroe licence area, including the 48/23-1 well which was drilled by a previous operator some 20 kilometres to the west of the 48/24-10z well.

API 40 oil as well.

So much for heavy oil worries !

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Yes they have.

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Over 40p now :)

On to the flow test.

1800bopd or more (and given its 40 API oil confidence should rise in them significantly beating this).

Circa 10 days to go then.


http://www.rigzone.com/news/article.asp?a_id=115519&hmpn=1


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http://www.irishexaminer.com/business/field-could-be-producing-oil-for-public-usage-within-two-years-185380.html


..............With at least 59 million barrels of recoverable oil in the (fifth) Barryroe well, and with global oil prices consistently above $100 a barrel, the well could be producing oil for public usage within the next two years.................


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45p :) Lovely.

Taken some profits off the table, still holding for flow test results.

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32p to 47p in a couple of weeks, got to take some profit :) !

Still holding some for flow test results.

If the flows are good : 60p or more and 450p plus for PVR and SEA should zip up a few pennies as well....

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Providence oil to start flowing this week

Looking very good !!!!!!!!


http://www.irishexaminer.com/ireland/hopes-soar-as-oil-find-exceeds-targets-187042.html


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Hope that the source is reliable.......so we do have a man on the rig !....and I reckon that there is much more than 50 million barrels down there ......wells 20km apart....there has to be more....depends if these can be classified as recoverable as the costs involved in these waters are huge...

Flying......... 60p tomorrow with good news ? ;)

At a minimum!

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Must be true - its just been on Radio 4! :-)

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Yep...Eire has oil.....

Would have thought this would be much higher...seems to have shot up and slipped back .....

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Results way above expectation.....I took some profits but will keep the rest as this is just the start.....

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Agressive drilling program.....Offshore irish companies is the place to be !...

This is just ridiculous on almost double the flow expected and recoverable oil with the sp less than yesterday ???....

Taken a long time to get there too!

Should be way higher.....

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That one is even worse....should be around 45 to 50p minimum...

FoxDavies views from the trading floor – Lansdowne Oil & Gas

I have been keeping an eye on this one recently.

looks like you took too long mitzy.,.

I have Balerboy.

I've tendered my SEA shares but it might be a mistake......not sure what to do as possibility of withdrawal from what I understand...

Listen to Lansdowne Oil & Gas present at the oilbarrel conference.
Click the link below to watch;


http://www.brrmedia.co.uk/event/109556/stephen-boldy-chief-executive-officer

superb chart.