TIDMLOGP
RNS Number : 2884O
Lansdowne Oil & Gas plc
01 October 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain. If you have any queries on this, then please contact
Steve Boldy, the Chief Executive Officer of the Company
(responsible for arranging release of this announcement).
1 October 2019
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Standard Exploration Licence 1/11
Barryroe, North Celtic Sea Basin
Update on Barryroe Farm-out Transaction
Lansdowne Oil & Gas plc (AIM: LOGP), the North Celtic Sea
focused, oil and gas company, today provides a commercial update in
relation to Standard Exploration Licence ("SEL") 1/11, which
contains the Barryroe oil accumulation (the "Barryroe Project").
The Barryroe Project is operated by EXOLA DAC ("EXOLA" or the
"Operator", 40%), a wholly-owned subsidiary of Providence Resources
P.l.c ("Providence"), on behalf of its partners, APEC Energy
Enterprises Limited ("APEC") and Lansdowne Celtic Sea Limited
("Lansdowne", 10%). The area lies in c. 100 metre water depth in
the North Celtic Sea Basin and is located c. 50 km off the south
coast of Ireland.
Background
On June 5, 2019, the Company announced that APEC, EXOLA and
Lansdowne (together, the "Barryroe Partners") had agreed certain
amendments to the Farm-Out Agreement (the "Updated FOA") for the
Barryroe Project, including a revised backstop date with APEC for
receipt of the US$9 million loan advance to June 14, 2019, which
was subsequently extended through various extensions to September
30, 2019.
Non-Receipt of Funds
As at close of business on September 30, 2019, no funds had been
received in EXOLA's account. Noting this specific contractual
non-performance to the amended terms to the Updated FOA,
Providence/EXOLA and Lansdowne have not agreed any further
extension with APEC to the Updated FOA. Without prejudice to any
other legal remedies that Providence/EXOLA and Lansdowne may have,
EXOLA has now advised APEC that it will commence with the licence
reversion process of APEC's 50% working interest in SEL 1/11 to
EXOLA and Lansdowne on a 40% and 10% basis, respectively.
Additionally, APEC has been advised that it no longer retains
exclusivity over SEL 1/11 and that Providence/EXOLA and Lansdowne
are free to initiate commercial discussions with third parties on
the Barryroe asset. Further announcements will be made in due
course.
Steve Boldy, Chief Executive Officer of Lansdowne,
commented:
"We continue to believe Barryroe offers a highly attractive
appraisal opportunity in shallow water for a number of potential
industry farm-in partners. We are now free to pursue discussions
with other interested parties while the door remains open for APEC
to deliver funds as called for under the Farm-out Agreement and
proceed with the planned Drilling Programme.
"Barryroe holds substantial 2C resources, independently audited
at 346 MMBOE Gross. In the event Lansdowne reverts to 20% working
interest, this results in net 2C Resources of 69 MMBOE. At our
current share price these 2C resources are valued at only
c.12c/BOE. The recent site survey has covered two locations, A
& B, that will target both the Middle Wealden and Basal Wealden
reservoirs and, combined with the area already appraised by the
48/24-10z well, can address more than 70% of the 2C resource
potential".
For further information please contact:
Lansdowne Oil & Gas plc +353 1 963 1760
Steve Boldy
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Nominated Adviser and Joint Broker
Lindsay Mair
Richard Hail
Stephen Wong
Brandon Hill Capital +44 (0) 20 3463 5061
Joint Broker
Oliver Stansfield
Qualified Person Review
This release has been reviewed by Stephen Boldy, Chief Executive
of Lansdowne, who is a petroleum geologist with 39 years'
experience in petroleum exploration and management. Dr Boldy has
consented to the inclusion of the technical information in this
release in the form and context in which it appears.
Notes to editors:
About Lansdowne
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focused,
oil and gas exploration and appraisal company quoted on the AIM
market and head quartered in Dublin.
For more information on Lansdowne, please refer to
www.lansdowneoilandgas.com
About Providence Resources
Providence Resources is an Irish based Oil & Gas Exploration
Company with a portfolio of appraisal and exploration assets
located offshore Ireland. Providence's shares are quoted on the AIM
in London and the Euronext Growth Market in Dublin. Further
information on Providence can be found on
www.providenceresources.com
About APEC
APEC Energy Enterprise Ltd. was established in 2014 as a Hong
Kong registered company with headquarters in Beijing. In addition
to its original focus on offshore oil & gas services, APEC
provides upstream energy acquisition advice and management services
in partnership with Chinese Oil Companies, offshore and onshore
service providers, and SOE investment groups.
www.apecenergy.com.
ABOUT BARRYROE
Barryroe, located in the North Celtic Sea Basin, off the south
coast of Ireland, has had six wells successfully drilled on the
structure. Hydrocarbons have been logged in all six wells, with
flow test results from four wells. Four wells were drilled in the
1970's by Esso with a further appraisal well drilled in 1990 by
Marathon Oil. The sixth well was drilled by Providence &
Lansdowne in 2011/12. The oil is light (43deg API) with a wax
context of c. 17-20%. The successfully tested reservoir sands are
of Cretaceous Middle and Lower Wealden age located between c.
4,500' TVDSS and 7,550' TVDSS. The field is covered by both 2D and
3D seismic, the latter which was acquired in 2011.
Following acquisition and interpretation of the new 2011 3D
seismic data together with the subsequent drilling and testing of
the 48/24-10z Barryroe appraisal well in 2012, Providence retained
the services of Netherland Sewell & Associates Inc. (NSAI) to
carry out a third party contingent resource audit (CPR) of the
in-place hydrocarbon and recoverable resources for the Basal
Wealden oil reservoir. NSAI reported that the Basal Wealden oil
reservoir has a 2C in-place gross on-block volume of 761 MMBO with
recoverable resources of 266 MMBO and 187 BCF of associated gas,
based on a 35% oil recovery factor. A third party (CPR) audit of
the overlying Middle Wealden, which was carried out by RPS Energy
(RPS) in 2011, reported a 2C in-place gross on-block volume of 287
MMBO with technically recoverable resources of 45 MMBO and 21 BCF
of associated gas, based on a 16% oil recovery factor.
The total combined audited gross on block 2C recoverable
resources at Barryroe therefore amount to 346 MMBOE, comprising 311
MMBO and 207 BCF. The following table summarises the range of total
gross audited on-block Barryroe oil resources:
1C 2C 3C
(MMBO) (MMBO) (MMBO)
Basal Wealden STOIIP (NSAI) 338
761 1,135
Basal Wealden Recoverable (NSAI) 85
266 511
Middle Wealden STOIIP (RPS) 31
287 706
Middle Wealden Recoverable (RPS) 4
45 113
TOTAL STOIIP 369 1,048 1,841
TOTAL RECOVERABLE OIL RESOURCES 89
311 624
Note: The table above excludes recoverable solution gas (i.e.
207 BCF or 34.5 MMBOE in the 2C case)
Further incremental resource potential has been identified in
logged hydrocarbon bearing intervals within stacked Lower Wealden
and Purbeckian sandstones which Providence has previously estimated
contains total associated P90, P50 & P10 in place oil resources
of 456 MMBO, 778 MMBO & 1,165 MMBO respectively. As there is
currently limited reservoir and well test data available over these
two intervals, future well data over these specific zones would be
required in order to firm up their associated final recoverable
resource estimates.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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