REG - Lansdowne Oil & Gas - Barryroe Update

Lansdowne Oil & GasAnnouncement

20/12/2021 07:00

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RNS Number : 1179W  Lansdowne Oil & Gas plc  20 December 2021

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain. If you have any queries on this, then
please contact Steve Boldy, the Chief Executive Officer of the Company
(responsible for arranging release of this announcement).

 

20 December 2021

Lansdowne Oil & Gas plc

("Lansdowne" or the "Company")

Barryroe Update

Lansdowne Oil & Gas plc (AIM: LOGP), the North Celtic Sea focused, oil and
gas company, welcomes the announcement today by Providence, providing an
update on the Barryroe Field, which lies in shallow water of about 100m some
50km off the south coast of Ireland.

 

Today's announcement recognises that an appraisal well is the vital next step
in moving the Barryroe Field forward to phased development, a position that
Lansdowne has long advocated.

 

The 48/24-10z well established good oil flow rates from the Basal Wealden A
Sand (3,504 bopd) as well as strong gas flow rates from the overlying gas
bearing Basal Wealden C Sand.

 

An area up-dip of the 48/24-10z well was identified as optimal for appraisal
and this was designated the K area. A site survey was acquired successfully in
November 2021 over the K area, with the work completed on time and under
budget.

 

The application for a Lease Undertaking for Barryroe, an essential precursor
to returning to operations and moving the project forward, is under
consideration by the Irish Department of the Environment, Climate and
Communications (DECC).

 

During 2021 there has been a growing concern about the security of energy
supply in Ireland, with a number of alerts issued by the regulator. This led
to the publishing of a new Government Policy Statement in November on the
Security of Energy Supply. This recognised the need for the development of new
conventional electricity generation (including gas-fired and
gasoil/distillate-fired generation) as a national priority.

 

Barryroe, containing significant resources of both oil and gas, can play an
important role in providing secure indigenous energy supplies for Ireland.

 

In addition to the oil resources in Barryroe, there are also substantial gas
resources. Previous Competent Person Reports have indicated some 207 BCF of
potential 2C resources. In addition to this the Basal Wealden C sand, that was
gas bearing in the 48/24-10z well, has been estimated to hold c. 400 BCF GIIP.

It is therefore a realistic expectation that Barryroe could yield more than
500 BCF of natural gas, equivalent to around half the reserves of the Corrib
Gas Field.

Oil and gas prices remain very robust, with the Brent oil price currently
above $70/bbl and European gas prices continuing at very high levels (UK NBP
above £2.50 per therm). Not surprisingly, Barryroe lying in shallow water (c.
100m), with relatively shallow reservoir depth - 7,000 to 7,500ft, has the
potential to deliver great value at these prices.

 

 

For further information please contact:

 Lansdowne Oil & Gas plc             +353 1 963 1760
 Steve Boldy

 SP Angel Corporate Finance LLP      +44 (0) 20 3470 0470
 Nominated Adviser and Joint Broker
 Stuart Gledhill
 Richard Hail

 Brandon Hill Capital                +44 (0) 20 3463 5061
 Joint Broker
 Oliver Stansfield

 

Notes to editors:

 

About Lansdowne

Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focused, oil and gas
exploration and appraisal company quoted on the AIM market and head quartered
in Dublin.

For more information on Lansdowne, please refer to www.lansdowneoilandgas.com
(http://www.lansdowneoilandgas.com) .

 

About Barryroe

Barryroe, located in the North Celtic Sea Basin, off the south coast of
Ireland, has had six wells successfully drilled on the structure.
Hydrocarbons have been logged in all six wells, with flow test results from
four wells.  Four wells were drilled in the 1970's by Esso with a further
appraisal well drilled in 1990 by Marathon Oil.  The sixth well was drilled
by Providence & Lansdowne in 2011/12.  The oil is light (43° API) with a
wax context of c. 17-20%.  The successfully tested reservoir sands are of
Cretaceous Middle and Lower Wealden age located between c. 4,500' TVDSS and
7,550' TVDSS.  The field is covered by both 2D and 3D seismic, the latter
which was acquired in 2011.

 

Following acquisition and interpretation of the new 2011 3D seismic data
together with the subsequent drilling and testing of the 48/24-10z Barryroe
appraisal well in 2012, Providence retained the services of Netherland Sewell
& Associates Inc. (NSAI) to carry out a third party contingent resource
audit (CPR) of the in-place hydrocarbon and recoverable resources for the
Basal Wealden oil reservoir.  NSAI reported that the Basal Wealden oil
reservoir has a 2C in-place gross on-block volume of 761 MMBO with recoverable
resources of 266 MMBO and 187 BCF of associated gas, based on a 35% oil
recovery factor.  A third party (CPR) audit of the overlying Middle Wealden,
which was carried out by RPS Energy (RPS) in 2011, reported a 2C in-place
gross on-block volume of 287 MMBO with technically recoverable resources of 45
MMBO and 21 BCF of associated gas, based on a 16% oil recovery factor.

 

The total combined audited gross on block 2C recoverable resources at Barryroe
therefore amount to 346 MMBOE, comprising 311 MMBO and 207 BCF.   The
following table summarises the range of total gross audited on-block Barryroe
oil resources:

 

 
 
      1C                       2C
            3C

 
 
         (MMBO)             (MMBO)
  (MMBO)

Basal Wealden STOIIP (NSAI)
 
   338                         761
        1,135

Basal Wealden Recoverable (NSAI)
                             85
                      266
           511

Middle Wealden STOIIP (RPS)
 
 
     31                         287
           706

Middle Wealden Recoverable (RPS)
                              4
             45                   113

 

TOTAL STOIIP
 
 369                     1,048                1,841

TOTAL RECOVERABLE OIL RESOURCES
 
     89                         311
           624

 

Note: The table above excludes recoverable solution gas (i.e. 207 BCF or 34.5
MMBOE in the 2C case)

 

Further incremental resource potential has been identified in logged
hydrocarbon bearing intervals within stacked Lower Wealden and Purbeckian
sandstones which Providence has previously estimated contains total associated
P90, P50 & P10 in place oil resources of 456 MMBO, 778 MMBO & 1,165
MMBO respectively. As there is currently limited reservoir and well test data
available over these two intervals, future well data over these specific zones
would be required in order to firm up their associated final recoverable
resource estimates.

 

 

 

 

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