Providence sees potential in Irish appraisal well - UPDATE

23rd Mar 2012 07:06

UK- and Ireland-focused oil and gas group Providence Resources has announced that testing at its Barryroe well, offshore southern Ireland, has proven the reservoirs to be highly productive.The productivity of the the gas bearing interval on the 48/24-10z Barryroe appraisal well far exceeded expectations and had constrained the ability to fully open the well up to its maximum potential.Preliminary modelling of the pressure data showed a co-mingled flow rate of 17m standard cubic feet of gas per day and 3,350 barrels of oil a day - this equates to 6,183 barrels of oil equivalents per day - at a flowing well head pressure of 500 pounds per square inch gauge."We are very pleased to confirm that the gas zone was far more productive than we had anticipated," said Chief Executive Officer Tony O'Reilly."The well lies just 3 km from installed pipeline infrastructure which may provide a future route to monetize any surplus Barryroe gas production. It is particularly pleasing to note that both the oil and gas zones have far exceeded our pre-drill expectations, both in terms of reservoir development and more importantly, oil and gas flow rates," he said.Well suspension operations are now complete and the rig will be demobilised to the UK imminently, the group said.The well is located 100m water depth 50km offshore Ireland in the Standard Exploration Licence (SEL) 1/11 in the North Celtic Sea Basin. Providence is the operator of SEL 1/11 with an 80%. Lansdowne Oil & Gas owns the remaining 20% stake.San Leon Energy assigned its 30% working interest in SEL 1/11 to Providence in December in exchange for a 4.5% net profit interest on the full field.BC