Providence: Potential Oil Resource of Barryroe (Ireland)

Providence Resources P.l.c., (“Providence”) the Irish oil and gas exploration and production company, whose shares are quoted in London (AIM) and Dublin (ESM), provides a further update on the resource potential of Barryroe in the North Celtic Sea Basin, offshore Ireland. Providence (80%) operates Barryroe on behalf of its partner Lansdowne Oil and Gas plc (20%). The area is located in Standard Exploration Licence (SEL) 1/11 and Licensing Option (LO) 12/4, situated in c. 100 metre water depth and is c. 50 kilometres off the south coast of Ireland.

Additional resource estimates for the lower Wealden and Purbeckian

In its RNS of July 25th, 2012, the Company issued updated oil in place figures for the Middle Wealden and Basal Wealden reservoir zones of 1,043 MMBO (P50) and 1,612 MMBO (P10). At that time, the Company also noted that there was further upside potential in the hydrocarbon bearing Lower Wealden and Purbeckian sands, as well as identifying the exploration potential of a deeper Upper Jurassic objective.

Providence has now completed an evaluation of the in place volumetric resource for these two additional logged hydrocarbon bearing intervals at Barryroe. This assessment, which was based on previous well data, together with 2D and 3D seismic data, estimates an additional total P50 oil in place resource of 778 MMBO and P10 resource of 1,165 MMBO. However, as there is limited reservoir and well test data available over these two intervals, future well data over these two specific zones would be required in order to firm up the final resource estimates. As such, these zones have not been included in the Barryroe dynamic reservoir simulation modelling, which is currently ongoing, with the results expected within the next six weeks. The resource potential of the underlying Upper Jurassic exploration objective has not been quantified as no wells have penetrated this deeper target at this location. The Barryroe partners plan to reprocess the 3D seismic data during Q4, and it is hoped that this will allow for better imaging of these deeper zones, prior to quantifying any associated prospective resource potential.

Commenting on the additional resource update, Mr. John O’Sullivan, Technical Director said:

“Whilst our focus remains firmly fixed on progressing the Middle and Basal Wealden sands into development, it is very encouraging to have identified this additional resource potential at Barryroe. It is clear that more data are required over these intervals, however, the numbers are potentially material and provide room for significant resource growth in the Barryroe project in the longer term. In the meantime, we look forward to providing shareholders with an update on recovery factors from the dynamic modelling project.”

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Press Release, September 05, 2012