Barryroe Update

RNS Number : 8522F

San Leon Energy PLC

21 June 2012

 



21 June 2012

San Leon Energy Plc

("San Leon" or the "Company")

Barryroe Update

San Leon, the specialist oil and gas company with an extensive portfolio of assets across Europe and North Africa, notes this morning's announcement from Providence Resources plc ("Providence") of the technical update by Providence on the Barryroe oil discovery in the North Celtic Sea Basin, offshore Ireland. San Leon announced, on 23 December 2011, that the Company has assigned its 30% working interest in Standard Exploration Licence 1/11 to Providence in exchange for a 4.5% NPI on the full field. San Leon Energy will not pay any further appraisal or development costs on the Licence and is not paying any costs towards the 48/24-10 well. 

The full announcement by Providence stated the following:

BARRYROE TECHNICAL UPDATE

·      RESERVOIR CORE ANALYSIS COMPLETED

·      PERMEABILITIES IN BASAL OIL BEARING RESERVOIR INTERVAL EXCEED EXPECTATIONS 

·      GOOD PERMEABILITIES ALSO CONFIRMED IN SECONDARY LOGGED HYDROCARBON BEARING SAND 

·      CONFIRMATION OF MARINE INFLUENCE IN LOWER PART OF WEALDEN DEPOSITIONAL SETTING 

Providence Resources P.l.c., ("Providence") the Irish oil and gas exploration and production company, whose shares are quoted in London (AIM) and Dublin (ESM), is pleased to provide a further technical update on the Barryroe oil discovery in the North Celtic Sea Basin, offshore Ireland. Providence (80%) operates Barryroe on behalf of its partner Lansdowne Oil and Gas plc. The area lies in c. 100m water depth and is c. 50 km off the south coast of Ireland.

Permeability analysis of side wall cores carried out by Corelab over the basal oil bearing interval in the recent 48/24-10z Barryroe appraisal well has now been completed. These analyses have confirmed average reservoir permeability in the basal oil bearing reservoir sands of c. 600 mD, confirming the high productivity nature of this reservoir interval as observed during well testing operations. In addition, analysis of cores from overlying secondary reservoir sands, which were logged as hydrocarbon bearing in the 48/24-10z well, has demonstrated permeabilities of up to c. 100 mD. These secondary sands are thinly developed at the 10z well location but they thicken significantly to the west, where previous logging by a previous operator shows porosities of up to c. 30% (ref. Esso-operated 48/23-1 Barryroe well.)

Third party micro-paleontological studies have now revealed the presence of a significant marine flooding surface within the lower part of the Wealden section, confirming that the environment of deposition had more of a marine influence than previously considered. Log motif analysis also shows that the deposition of the basal oil bearing sand may have been in a distributary channel setting as part of a broad delta plain which would support the evidence of marine influence.

Speaking today, John O'Sullivan, Technical Director of Providence said,

"It is pleasing to note that the post well analysis from Barryroe keeps on getting better. The results of the sidewall core analysis are very positive as they confirm the high productivity nature of the main oil bearing basal reservoir interval. The permeability data from the overlying secondary reservoirs is welcome news as previously we had no information as to their potential productivity. These sands are now likely to add further resource potential to Barryroe. The evidence for marine influence in the lower part of the Wealden is consistent with the previous Esso-Marathon core analysis, which suggested the basal reservoir interval to have been deposited in a delta plain setting. With the completion of these post well studies, in conjunction with all the other post well works that have now been carried out, we look forward to providing a revised resource update for Barryroe later this summer."

-ENDS-

For further information contact:

San Leon Energy Plc	Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
Macquarie Capital (Europe) Limited	Tel: [phone]
Paul Connolly John Dwyer Westhouse Securities Richard Johnson Antonio Bossi	Tel: [phone]
College Hill Associates	Tel: [phone]
Nick Elwes

www.sanleonenergy.com

Qualified person

John Buggenhagen, who has reviewed this update, has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy Group and based in San Leon's Warsaw office in Poland.

 

END

 

 

MSCLIFLTRIILFIF