Licence 1/11 (“Barryroe”) incorporates part blocks 48/22, 48/23, 48/24,48/27,48/28,48/29 and 48/30; covering an area of 614 sq km along the axis of the North Celtic Sea Basin.
Following the recently completed Farm-out, the Barryroe Licence is held by Lansdowne (10 per cent), APEC (50 per cent) and EXOLA (40 per cent).
Part of the Barryroe acreage lies beneath the Seven Heads Gas Field, with the boundary between the two concessions lying at 4,000 ft (approximately 1,250m) sub-sea.
The reservoir sands in the Barryroe Field lie in the Lower Cretaceous Wealden sequence.
The original discovery well on Barryroe was drilled by Esso in 1973 – 48/24-1 and this tested oil at an aggregate rate of 1300 barrels per day from the Middle Wealden.
An appraisal well drilled by Esso in 1974, 48/28-1, tested oil from a Middle Wealden sand at a rate of 1527 barrels per day.
A third well, 48/24-3, drilled by Marathon in 1990, tested oil from the Basal Wealden sand at an aggregate rate of 1619 barrels per day.
Lansdowne participated in the successful appraisal well 48/24-10z drilled in 2011/2012, which tested at a much better rate of 3514 barrels per day from the Basal Wealden sand. The oil is light, 43 degree API, with a wax content of c 17%.
|Barryroe Schematic Cross-Section
In 2018 a Farm-Out Agreement (“FOA”) was entered into between Lansdowne, EXOLA (a wholly owned subsidiary of Providence Resources) and APEC Energy Enterprises Limited (“APEC”).
Under the terms of the FOA, in consideration for APEC taking a 50% working interest in SEL1/11, with EXOLA reducing to 40% and Lansdowne to 10%, the key commercial and operational terms provide for APEC to:
- Pay 50% of all costs associated with the Drilling Programme (4 wells, plus side-track plus 4 well tests) and the Option wells (2 wells and testing) if applicable
- APEC to finance, by way of a non-recourse loan facility (the “Loan”), the remaining 50% of all costs attributable to EXOLA (Providence Subsidiary) and Lansdowne in respect of the Drilling Programme and the Option Wells (if applicable)
- The Loan will incur annual interest of LIBOR +5% and will be repayable from production cash-flow from SEL 1/11 with APEC entitles to 80% of cash-flow until the loan is repaid in full
- Following repayment of the Loan, APEC will be entitled to 50% of production cash-flow, with EXOLA and Lansdowne receiving 40% and 10%, respectively
EXOLA will operate the Drilling Programme and well planning and consenting is underway with drilling operations expected to commence in Q2 2019.
|Barryroe 2019 Drilling – Base Programme