Audit confirms Barryroe potential

Irish oil and gas exploration firm Providence Resources has published a third-party audit of its Barryroe oil field off the coast of Ireland, confirming the potential of the resource.

The company said it had retained the services of Netherland Sewell & Associates Inc (NSAI) to examine the in place hydrocarbon and recoverable resources for the Basal Wealden oil reservoir. It found substantial recoverable resources at the reservoir, at 761 million barrels of oil in place, with 266 million recoverable. The audit beats Providence’s internal assessment last year of 756 million barrels in place.

The NSAI study also found significant gas resources.

A third party audit of the Middle Wealden was carried out by RPS Energy in 2011. That reported 45 million barrels of oil recoverable.

Providence’s technical director John O’Sullivan described the data as a “very positive step” for Barryroe. The company would now proceed with its planned farm out discussions, he said.

The Barryroe field is operated by Providence, which has an 80 per cent stake. The remaining 20 per cent is owned by Lansdowne Oil and Gas.

Lansdowne chief executive Steve Boldy welcomed the audit results, saying it endorsed Lansdowne’s view of the basin’s commercial attractiveness.

Davy Stockbrokers described today’s report as “an independent and important verification” of the Basal Wealden resource.

“The fact that the public statement was limited to a technical audit presumably reflects the commercial considerations of the farm-out process,” Davy said. “Notwithstanding this, the scale of the resource is a vital part of the value driver and today's news suggests this part of the project has bettered expectations.”