Spanish Point, an Irish Atlantic Frontier oil discovery dating from 1981, is almost certainly commercial, according to its operator Providence Resources.
Interpretation of the 3D seismic data acquired in 2009 and incorporated into a comprehensive technical assessment of the discovery has been completed. An appraisal well is planned for 2012.
Moreover, Providence said last month (November) that additional analysis has been undertaken on core obtained from the original discovery well but only made available to the partnership in 2009.
The results from new core-based goniometric, capillary pressure and rock mechanics studies together with hydraulic fracture modelling and new fluid compositional modelling have also been fed into the assessment.
Chrysaor, a partner in Spanish Point, carried out the work, which also included structural, static and dynamic modelling, integrated probabilistic modelling, development concept evaluation and economics.
“On the basis of this work, the partnership has concluded that successful appraisal of the Spanish Point discovery will likely result in a commercial development,” said Providence in an update note.
“The partners have focused on two volumetric scenarios which indicate an in-place resource which ranges from about 200-510million barrels oil equivalent with about 100-200million barrels recoverable respectively.”
The current view is that field development would require 6-14 horizontal fracture stimulated production wells depending on the final resource base.
Most likely peak field production in all volumetric cases would be about 250million cu ft of gas and 30,000 barrels of oil per day (72,000 barrels oil equivalent per day).
Tony O’Reilly, CEO of Providence, said in a statement: “The completion of this technical work finally awakens the sleeping giant that is Spanish Point. This is not only a significant event for Providence and its partners, but for the whole Irish offshore.
“The last two years work has significantly de-risked Spanish Point and as such, it gives us every confidence in the successful future appraisal and development of this tested discovery.
“We have already identified the primary appraisal well location and have commenced well planning with a view to drilling in 2012.”
Spanish Point is located in the Porcupine Basin, offshore western Ireland. It was found by Phillips Petroleum in 1981, around 170km (105 miles) offshore.
The 35/8-2 well encountered oil and gas in Upper Jurassic Volgian sands with one zone flowing at about 5million cu ft of gas and 1,000 barrels of oil per day.
The discovery was not appraised due to lack of gas infrastructure and market in Ireland at the time. In 2004, Providence with Sosina licensed the discovery and following in depth subsurface and pre-development studies,
Chrysaor farmed in during 2008 by agreeing to fund the 3D seismic survey of 2009.