Big picture - Why invest in Lansdowne Oil & Gas
Lansdowne Oil & Gas Snapshot
Lansdowne's portfolio consists of Cretaceous gas exploration and appraisal assets that primarily flank the Kinsale Energy ( PETRONAS) operated Kinsale Head and Seven Heads gas-fields and associated infrastructure. Lansdowne, through the acquisition of Milesian Oil & Gas Limited in December 2007, acquired a substantial position along the basin margin in already identified Jurassic exploration targets with potential for oil and gas. Lansdowne further consolidated its position in the NCSB with the award of a Licence 1/11 giving it, and its joint-venture partner, rights to the proven oil productive horizons beneath the Seven Heads gas-field discovered by the Esso/Marathon consortium in the 1970s. Oil from Cretaceous reservoirs was successfully tested at flow rates of between 1,300 bopd and 1,600 bopd, from three previously drilled wells on what is now called the Barryroe Oilfield. Lansdowne, as a 20% equity partner, recently participated in the successful Barryroe 48/24-10z appraisal well that tested 3514bopd in March, 2012.
Lansdowne has targeted the Irish offshore shallow shelf areas for exploration and exploitation as it considers the proven oil and gas productive NCSB relatively underexplored in the context of the North Sea neighbouring basins. Lansdowne's portfolio of opportunities offers a relatively low-cost shallow water drilling environment that combined with competitive fiscal terms afford a realistic expectation of high returns on investment within the medium term. Lansdowne's in-house knowledge and experience as provided by its management and technical team, coupled with its comprehensive data-base, assures its competitive advantage within the industry in this region.
Lansdowne Oil & Gas Plc continues to pursue its focused approach to explore and develop its licensed areas in the North Celtic Sea basin, off the south coast of Ireland.
The Company continues its strategy of evaluating quality drillable prospects on its licensed areas and combining a long-term exploration programme for commercial oil with near-term exploitation of shallow gas targets. As a result, Lansdowne now holds rights, through its wholly owned subsidiaries, to five Standard Exploration Licences in the Irish offshore.
Standard Exploration Licence 4/07 – “Midleton / East Kinsale”
Licence 4/07 incorporates part-blocks 49/11, 49/12, 49/17 and 49/18 immediately south-east of the Kinsale Head Gas field along the axis of the North Celtic Sea Basin. The licence encompasses an area of 542 sq km and Lansdowne holds a 20% interest. This licence contains the Midleton gas discovery and the East Kinsale gas prospect.
Midleton lies approximately 20 km northeast of the Kinsale Head gas field (c. 1.7 TCF reserves) and also 20km to the east of the Ballycotton gas field (c. 60 bcf reserves).
It was drilled by the 49/11-3 well in the summer of 2015.
Good quality reservoirs were found in the Greensand and Upper Wealden formations of the Lower Cretaceous.
Gas was found in the Greensand, but the volumes were not considered commercial and the well was plugged and abandoned.
Post well evaluation studies are continuing and the results will be integrated to assess the impact on the other gas prospects in the portfolio.
East Kinsale Prospect
The East Kinsale Prospect area lies some 15 to 20 km to the east of the Kinsale Head Field (c 1.7 TCF reserves) and immediately to the north of the Old Head gas field, established recently by the 49/23-1, 49/23-2 and 49/23-2Z wells.
A number of low relief anticlinal closures have been mapped, some of which may form extensions of the Old Head accumulation.
A NE -SW trending faulted anticline that may form a separate structure has been labelled the East Kinsale Prospect and this shows evidence of gas escape on seismic.
Standard Exploration Licence 5/07 – “Rosscarbery”
Licence 5/07 incorporates part-blocks 48/17, 48/18 and 48/19 adjacent to and immediately north-west of the Kinsale Head Gas field. The licence encompasses an area of 181 sq. kms, lies in water depth of circa 100 metres, and is currently held 99% by Lansdowne as operator. This licence contains the Galley Head gas discovery with potential for 30 BCF GIIP/ 25 BCF recoverable and the SE Rosscarbery and Rosscarbery Prospects with combined P50 prospective resources of 324 BCF GIIP/ 247 BCF recoverable .
The Galley Head discovery well (48/18-1), lying some 6km northeast of the main Rosscarbery Prospect, was drilled by BP in 1985 and tested gas at 13.7 mmscfd from the Lower Cretaceous Greensand, ‘A’ Sand, reservoir.
In post-well evaluation studies, BP identified a number of other structures, with the main prospect being what is now called Rosscarbery.
Standard Exploration Licence 5/08 – “Amergin”
Licence 5/08 incorporates part-blocks 47/25, 48/21 and 48/22 on the north-western flank of the North Celtic Sea Basin. Situated in water depths of c.100 metres, the blocks cover an area of 227 sq kms and are approximately 30km from the south coast of Ireland.
Two large structures, Amergin and Eremon, have been mapped at Jurassic level.
Mapped on 3D seismic, Amergin is a tilted fault block with dual primary reservoir objectives at Basal Wealden & Basal Upper & Middle Jurassic levels. The Basal Wealden sandstone is a proven reservoir with the Barryroe 48/24-10z appraisal to the south having tested oil at 3514 bopd in March 2012. The primary Jurassic reservoir target tested at a rate of 6,467 bopd in the Gulf Oil 49/9-2 discovery of the Helvick Field in 1983. Secondary reservoir targets may exist in deeper Jurassic (Sinemurian) sandstones and shallower Cretaceous (Wealden) sandstones.
Amergin has potential for 739 mmbbls STOIIP / 231 mmbbls recoverable.
Another feature, the Eremon structure is a northeast-southwest trending horst block mapped at Jurassic level, the only structure of this type identified on the northern flank of the basin.
Lansdowne acquired 489 kms of new 2D seismic data in May 2008 over both the Amergin and Eremon structures and 3D seismic over the Amergin structure in 2011.
This data has been processed and interpreted.The new 2011 3D seismic data has resulted in much better imaging of the Amergin structure and has confirmed the prospect as a robust structural closure ready for drilling.
Standard Exploration Licence 2/07 (49/9p) – “Helvick”
(lease undertaking application under consideration)
The Helvick field is situated some 40km offshore Ireland in c. 80m (265 ft) water depth. The field was discovered in 1983 by Gulf Oil with the drilling of the 49/9-2 discovery well. This well was tested and flowed at a cumulative rate of c. 10,000 BOPD from four zones. The Helvick oil is a light (44° API) and non-waxy crude oil, contained in high permeability Upper Jurassic sands.
Standard Exploration Licence 1/11 – “Barryroe”
Licence 1/11 (“Barryroe”) incorporates part blocks 48/22, 48/23, 48/24, 48/27, 48/28, 48/29, 48/30 covering an area of 614 sq km along the axis of the North Celtic Sea Basin. The Barryroe Licence is held by Lansdowne (20 per cent) and Providence Resources plc (80 per cent). Part of the Barryroe acreage lies beneath the Seven Heads Gas Field, with the boundary between the two concessions lying at 4,000ft (approximately 1,250m) sub-sea.
Lansdowne participated in the successful appraisal well 48/24-10z which tested 43 degree API oil at 3514 bopd. Three previous wells tested oil in the Barryroe Licence acreage which lies directly below the Kinsale Energy Limited operated Seven Heads Gas Field. The reservoir sands are in the Cretaceous Middle and Lower Wealden sequences between 1,400m and 2,300m (approximately 4,600 to 7,550ft) below sea level.
Two wells drilled by Esso in 1973/1974 tested oil. Well 48/24-1 from Middle Wealden sands at an aggregate rate of 1300 barrels per day and 48/28-1 tested oil from a Middle Wealden sand at 1527 barrels per day. A third well, 48/24-3 drilled by Marathon in 1990, tested oil from Lower Wealden sands at an aggregate rate of 1619 barrels per day.
Oil tested is a light 43 degree API, with a high wax content ranging c.17%
Lansdowne’s share of 2C recoverable resources in Barryroe is 69 MMBOE
Following integration of the successful appraisal well results the updated Oil In Place P50 Resource estimate by the Operator for Barryroe is 1,043 mmbbls.
John Greenall joined RC Greig & Co in Glasgow in 1960 becoming a partner in 1965. He assisted in the formation and subsequent fund raising of London and Scottish Marine Oil (LASMO) and Clyde Petroleum. Mr Greenall was instrumental in creating Greig Middleton through the merger of RC Greig and WN Middleton in 1983. He joined The Stock Exchange Council in 1985 and served on the Board of its Successor – The Securities Association. In 1994 he joined HCIB (a subsidiary of Guinness Mahon (“GM”)) as director of Corporate Broking. When GM was taken over by Investec in 1998 he headed up the corporate broking team at that bank. One of HCIB’s specialist research areas was the Exploration & Production sector and he oversaw a number of flotations in the sector the most recent being Venture Production before he retired in 2002.
Dr Stephen Boldy
Chief Executive Officer
Dr. Stephen Boldy is a petroleum geologist with 35 years experience. From 1980 to 1984 Dr Boldy worked as a petroleum geologist for the Petroleum Affairs Division of the Department of Energy in Dublin and then spent almost 19 years with Amerada Hess Corporation, where his appointments included U.K. Exploration Manager and International Exploration Manager. In March 2003 he joined Ramco (now SeaEnergy PLC) as Vice President Ireland and led the flotation of Lansdowne Oil and Gas in 2006.
Dr Boldy has extensive experience of working Irish offshore basins and the basins west of Britain and earned his Ph.D in geology from Trinity College Dublin.
Con Casey has an honours degree in Business Management from Trinity College and is a Fellow of the Association of Chartered Certified Accountants. He has over 30 years experience in advising companies in the natural resources sector as well as acting as adviser to a number of publicly quoted companies and semi-state organisations. He specialises in the area of corporate finance and is a founding partner of LHM Casey McGrath, one of Ireland’s leading accountancy firms, as well as being a former non-executive director of San Leon Energy Plc and Petroceltic International Plc where he held a board position for 13 years.
John Aldersey-Williams has worked in energy since 1984. He started his career as an oil company geologist before completing an MBA. He then spent some years in investment banking, with an energy focus, before returning to the oil industry in financial and commercial roles. From 1999 to 2001, he served as finance director to Texaco’s North Sea Upstream Business Unit. From 2001 until 2008, he was a consultant active across the energy sector, before being appointed a Director and subsequently CEO of SeaEnergy PLC in 2012. He has been a director of Lansdowne Oil & Gas plc since 2012.
Viscount Torrington graduated from Oxford University as a geologist in 1964. He served in technical and managerial roles with Anglo American plc and Lonrho plc. In 1975, he became managing director of the Attock Oil Company, later Anvil Petroleum plc. The latter was merged with Berkeley Exploration in 1986, and acquired by Ranger Oil the same year. In 1987, he became a Director of Flextech plc and chief executive of Exploration & Production Services (Holdings) Limited, better known as Expro, a major UK oilfield services contractor. In 1995, he became Managing Director of Heritage Oil & Gas Limited, later listed in Toronto as Heritage Oil Corporation.
Steven George Lampe
Steven Lampe is an investment manager based in New York, USA. He is a managing member of Lampe, Conway & Co LLC, a limited liability company organised in the state of Delaware.
Jeffrey David Auld
Jeffrey Auld has more than 20 years of financial and commercial experience in upstream oil and gas development and production. His career has involved periods working for exploration and production companies – Premier Oil, PetroKazakhstan and Equator Exploration; as well as periods spent in financial institutions – Goldman Sachs, Canaccord Adams and Macquarie.
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