Analysts: Providence Has Potential Billion Barrels at Barryroe

UAnalysts: Providence has potential Billion Barrels at Barryroe

Irish oil and gas junior Providence Resources could be sitting on more than one billion barrels of oil in place at its Barryroe discovery, according to a research report issued by oil analysts at London-based Liberum Capital.

The research note, published Friday, stated that Liberum estimates Barryroe could contain around one billion barrels of oil in place and more than 160 million barrels of recoverable oil based on technical disclosures concerning the Barryroe well made by Providence. These figures are around three times what investors in Providence are expecting from Barryroe, according to Liberum.
The investment bank's argument is that disclosures by Providence about the 48/24-10z Barryroe well have already provided key data points required to support the view that STOIIP (Stock Tank Oil Initially In Place) is at least one billion barrels. These include information on net pay (24 feet), porosity (15 percent) and hydrocarbon saturation (87 percent).
Meanwhile, although the areal extent of the basal section has not been formally disclosed,"there are a number of clues in [Providence's] announcements". These include:
  • The basal sand has been logged as hydrocarbon bearing in all five wells that have been drilled into it – two of which (48/23-1 and 48/22-10z) are around 13 miles apart.
  • No oil water contact has been established.
  • 3D seismic covers around 92 square miles and "there is no hint that the extremities of the field have been established".
Consequently, Liberum's analysts believe that an update later this month could indicate total Barryroe STOIIP of at least one billion barrels, and perhaps as much as 1.6 billion barrels.
Providence has an 80-percent interest in the license that covers the Barryroe discovery and the firm operates this license on behalf of its partner Lansdowne Oil and Gas.


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.