공시 • Feb 05
Lansdowne Oil & Gas plc Announces the Results of Technical Studies and Resulting Resources Estimates Carried Out on the Barryroe Field
Lansdowne Oil & Gas plc announced the results of technical studies and resulting resources estimates carried out on the Barryroe Field, which lies in shallow water of about 100m some 50km off the south coast of Ireland and also welcomes the announcement by the Operator, Providence Resources PLC, providing an update on the outcome of its strategic review. In September 2021, Providence announced that it had commenced a strategic review of the optimum way forward for Barryroe and the preliminary outcome of this was announced in December 2021 in relation to a phased development programme, involving a Phase 1A development commencing with a potential appraisal well, to be followed by the Phase 1B development. This announcement by Providence of the conclusion of its review, now confirms that an appraisal well is a vital next step in moving the Barryroe Field forward under a phased development programme. The 48/24-10z well on the Barryroe Field established good oil flow rates from the Basal Wealden A Sand (3,504 bpd), 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. During 2021, a number of important third-party technical studies were carried out to evaluate the potential of a first phase of development of the Barryroe Field, centred around the 48/24-10z well and surrounding central parts of the Barryroe Field. These studies included reservoir modelling of the sub-area to be targeted in the Phase 1 development, updated well design and costings, and an updated conceptual development study, focused only on the oil-bearing Basal Wealden A Sand. These technical studies fed into a new Competent Person's Report produced by RPS ("RPS CPR"). The RPS CPR has addressed the potential oil volumes in the Basal Wealden A Sand, the reservoir reviewed in the earlier full-field CPR carried out by Netherland Sewell & Associates Inc. ("NSAI") in 2012. Importantly, it has not addressed the gas volumes present in the overlying C Sand and, furthermore, it has only addressed oil volumes in the sub-area of the Barryroe Field to be potentially targeted by the proposed Phase 1A and Phase 1B development. The RPS CPR concluded that the Phase 1A development, in the P50 Case, has the potential to recover 58.3 million barrels of oil gross (11.66 million barrels net to Lansdowne), from a Best Estimate of 173 million barrels in place (STOIIP), held in fault blocks 1, 2 and 3. This development scenario involves the drilling of 5 producer wells, 4 water injector wells and a single gas-injection well, with estimated plateau oil rate production of 20,000 bpd gross (4,000 bpd net to Lansdowne), produced from sub-sea wells, tied back to a Floating Production and Storage and Offloading vessel ("FPSO"). The Phase 1A development is expected to be followed by the Phase 1B development, targeting an additional Best Estimate 105 million barrels in place in the more southerly Fault Block 4, which has the P50 potential to deliver an additional 22.9 million barrels of oil gross (4.58 million barrels net to Lansdowne). The Phase 1B development involves the drilling of an additional 3 Producer and 2 water injector wells. The total P50 volumes estimated for the combined Phase 1A and 1B developments amount to 81.2 million barrels of oil recoverable gross (16.24 million barrels net to Lansdowne) from a Best Estimate of 278 million barrels of oil in place (STOIIP). An economic evaluation, documented in the RPS CPR, covers both Phase 1A and 1B developments and in the 2C oil resources case, delivers an NPV10% for Lansdowne's 20% share of $104 million under a Brent Oil Price assumption of USD 68 per barrel in 2027, rising to $70/bbl in 2028 and 2029 and inflated at 2% per annum thereafter. This equates to a NPV10% of $6.40/bbl. Lansdowne notes that the current Brent Oil Price is now around USD 90 per barrel. Lansdowne's 20% interest in the Barryroe Field has a higher economic NPV10% value per barrel for its working interest share than Providence's, as Lansdowne's is free from the San Leon 4.5% Net Profits Interest ("NPI") held over Providence's working interest. The application for a Lease Undertaking for the Barryroe Field remains under consideration by the Irish Department of the Environment, Climate and Communications (DECC) and requires Ministerial approval. Award of a Lease Undertaking is an essential precursor to returning to active operations and moving the project forward.