Providence Resources (LON:PVR) announced this morning details of an upgraded resource estimate at the Barryroe oil field in the North Celtic Sea Basin. Analysis of data gathered at two new areas within the field suggests there could be the equivalent of an extra 1.165 billion barrels of oil available.
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."
Broker FoxDavies said: 'Investors will now be looking forward to future well data over these two specific zones (Lower Wealden and Purbeckian sands) which will be required in order to firm up the final resource estimates.'
Providence Resources are currently trading at 631.90 pence a share, up 0.94% on opening.
Fortune Oil (LON:FTO) announced this morning that it has signed a contract for a gas gathering system to connect its Liulin Coal Bed Methane field in Shanxi Province to an existing wholesale station.
Mr. Tee Kiam Poon, Chief Executive of Fortune Oil, said: "We are pleased with the progress we continue to make in 2012 at Liulin especially as we are seeing gas flow at commercial levels from our horizontal wells. The decision to move to the construction phase has now been taken with our goal to achieve commercial gas sales in 2013. Our achievements at Liulin continue to position the Company as a significant developer of unconventional gas, in line with China's natural gas strategy, and pave the way for commercial gas sales and a new source of revenue for the Company."
Broker FoxDavies said: 'With the construction scheduled for completion by mid-2013, we can expect steep rises in production to align with the larger market potential. Expect positive movements today.'
Fortune Oil are currently trading at 9.22 pence a share, up 2.44% on opening.
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