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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.