Tuesday 21 November 2017

Providence begins 3D seismic survey of Celtic Sea oil prospect

EXPLORATION

John Mulligan

John Mulligan

Oil and gas exploration firm Providence Resources has embarked on a 3D seismic survey of its Barryroe oil discovery in the north Celtic Sea.

The company controls 50pc of the prospect, with San Leon Energy holding 30pc and Lansdowne Oil and Gas the other 20pc.

It is expected the survey will take two weeks to complete and it will be used to assist in the pre-development drilling programme, according to Providence. Drilling is slated to start toward the end of the summer.

A semi-submersible rig has already been contracted for the drilling programme.

Providence said the new 3D seismic data combined with modern well technology and high oil prices would be "key components" to unlocking value at Barryroe.

Providence reckons Barryroe could contain as much as 60 million barrels of oil.

Providence has previously stated that studies have indicated the complex reservoir architecture together with the waxy nature of the Barryroe crude could pose a challenge to commercial development.

However, the company believes the current environment, better technology and seismic data could help it overcome such challenges.

"The drilling campaign will cover six basins and represents the largest drilling campaign ever carried out offshore Ireland," said chief executive Tony O'Reilly.

The company boosted its holding in the Barryroe discovery from 30pc to 50pc last December as part of an asset swap with Lansdowne.

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