PROVIDENCE RES. Barryroe Update, Strategic Review And Licence Update

 
TIDMPVR 
 
   FOR IMMEDIATE RELEASE 
 
   Providence Resources P.l.c. 
 
   Corporate Update 
 
   Barryroe Update, Strategic Review and Licence Update 
 
   Dublin and London -- February 13, 2020 -- Providence Resources P.l.c. 
(PVR LN, PRP ID), the Irish based Energy Company ("Providence" or the 
"Company"), today provides the following corporate update. 
 
   BARRYROE UPDATE 
 
 
 
   Exola DAC, a subsidiary of Providence and operator of the Barryroe Field, 
has notified APEC that it has commenced the regulatory process required 
to transfer the 50% equity in Standard Operating Licence ("SEL") 1/11, 
which contains the Barryroe field ("Barryroe"), currently assigned to 
APEC, back to the original owners. This will result in Exola DAC and 
Lansdowne Celtic Sea Limited reverting to their original 80% and 20% 
interest respectively on completion. 
 
   Exola DAC as operator of Barryroe has recommenced the farm-out process 
and a number of companies are actively assessing the field data. 
Following the Company's review of the field's resource potential, which 
confirms that there is a considerable gas resource within the Barryroe 
structure in addition to the recognised oil resource, which was the 
original focus of the farm-out process, several additional companies not 
included within the initial process have expressed interest in the gas 
potential and have been invited into the data room. 
 
   The Barryroe appraisal work programme is expected to include at least 
two appraisal wells and an extended production test. The Barryroe 
structure has been independently verified as containing large volumes of 
both gas and oil, and the proposed appraisal programme is expected to 
confirm the presence of either a large oil field with a gas cap or a 
large gas field surrounded by an oil rim. The programme will also assess 
reservoir continuity. The appraisal programme is being designed to 
directly address these reservoir uncertainties, and deliver the 
information required to support development planning ahead of an 
investment decision. 
 
   The independently verified reports of the hydrocarbons recoverable 
within the Barryroe field concluded that a mid-case of 346 MMBOE of 2C 
resources was present within the Middle and Basal Wealden sands.  (Note: 
1BOE 6SCF of gas). 
 
   In addition to the discovered resources within the Barryroe structure, 
the Jurassic formation beneath the field remains undrilled. Deepening 
one of the appraisal wells to assess this additional potential deeper in 
the Barryroe structure is under consideration. 
 
   Providence Resources is assessing the potential for a carbon neutral gas 
development as an option for the Barryroe field. Several nearby depleted 
gas fields are being prepared for decommissioning, and a number of 
industry studies have assessed their potential for carbon sequestration 
(CO2 storage within the depleted gas fields). It may be possible to 
minimise the carbon footprint of a Barryroe development by recycling 
some of the existing pipelines and infrastructure associated with the 
depleted fields and participating in a broader carbon capture 
initiative. 
 
   Exola DAC as operator of SEL 1/11 has received approval to apply for a 
site survey at a third appraisal location on the Barryroe field. This 
application was submitted to ensure all preferred appraisal locations 
are operationally ready. The application is subject to public 
consultation and review in accordance with applicable directives. 
 
   STRATEGIC REVIEW 
 
   Following the appointment of a new Chief Executive Officer in early 
January, the board and management team are primarily focused in the 
short to mid-term on the successful appraisal of the Barryroe field and 
on finalising plans to facilitate its future development 
 
 
 
   The Barryroe field contains the potential for additional resource within 
the Jurassic formation which lies beneath the discovered reservoirs. The 
Jurassic formation remains undrilled and this potential will be 
prioritised ahead of the remaining exploration within the Providence 
portfolio. 
 
 
 
   All exploration licences are being re-assessed based on cost and 
relevance to the new business model. 
 
 
 
   Following on from the RNS dated 12 September 2019, which set out details 
of the September placing and the re-engineering of Providence's business 
model, the Company advises that it currently has sufficient working 
capital to fund Providence's costs through to the end of March/ early 
April 2020. The Company has completed its redundancy program and 
materially reduced the cost base. With the farm-out process continuing 
the Company confirms that additional funds will be required to provide 
sufficient working capital to support the business in the near term and 
the board is currently considering its funding options. 
 
   LICENCE UPDATE 
 
 
 
   Farmout FEL3/04 -- Dunquin South 
 
   ENI has advised Providence that it plans to relinquish its interest in 
and operatorship of FEL3/04 which contains the Dunquin South prospect. 
The Dunquin North prospect which was drilled in July 2013, confirmed the 
presence of both reservoir and residual hydrocarbon within the 
structure; however, the reservoir was breached allowing hydrocarbon to 
migrate out of the structure. The Dunquin South prospect appears less 
likely to have been breached, based upon the high-quality 3D seismic 
available over the prospect and remains an attractive exploration 
prospect. Providence is preparing to farm out a material interest in the 
FL3/04 licence on completion of the ENI relinquishment. 
 
 
 
   Voluntary Surrender of FEL 2/14 - Diablo 
 
   The Department of Communications, Climate Action and Environment in a 
letter dated 28 January 2020 to the JV partners (Total E&P Ireland 
Limited, Sosina Exploration Limited and Capricorn Ireland Limited) 
confirmed that the licence had been accepted for Voluntary Surrender 
with an effective date from 31 December 2019. 
 
 
 
 
INVESTOR ENQUIRIES 
---------------------------------- 
Providence Resources P.l.c.         Tel: +353 1 219 4074 
Alan Linn, Chief Executive Officer 
Pat Plunkett, Chairman 
Cenkos Securities plc               Tel: +44 131 220 9771 
Neil McDonald/Derrick Lee 
J&E Davy                            Tel: +353 1 679 6363 
Anthony Farrell 
Mirabaud Securities Limited         Tel: + 44 20 3167 7221 
Peter Krens 
 
MEDIA ENQUIRIES 
---------------------------------- 
Murray Consultants                  Tel: +353 1 498 0300 
Pauline McAlester 
 
 
 
 
 
   ANNOUNCEMENT & FORWARD-LOOKING STATEMENTS 
 
   This announcement contains certain forward-looking statements. Actual 
results may differ materially from those projected or implied in such 
forward-looking statements. Such forward-looking information involves 
risks and uncertainties that could significantly affect expected 
results. No representation is made that any of those statements or 
forecasts will come to pass or that any forecast results will be 
achieved. You are cautioned not to place any reliance on such statements 
or forecasts. Those forward-looking and other statements speak only as 
at the date of this announcement. Providence Resources P.l.c undertakes 
no obligation to update any forward-looking statements. 
 
   ABOUT PROVIDENCE RESOURCES PLC 
 
   Providence Resources is an Irish based Oil & Gas Energy 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 
 
   SEL 1/11 is operated by EXOLA DAC ("EXOLA" or the "Operator", 40%), a 
wholly-owned Providence subsidiary, on behalf of its partners, APEC 
Energy Enterprises Limited ("APEC") and Lansdowne Celtic Sea Limited 
("Lansdowne", 10%), collectively the "Barryroe Partners". 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. 
 
   FEL 2/14 is operated by TOTAL E&P Ireland B.V. (35.0%), a wholly owned 
subsidiary of TOTAL S.A., on behalf of its partners, Capricorn (30%), a 
wholly owned subsidiary of Cairn Energy PLC, Providence Resources P.l.c. 
(28%) and Sosina Exploration Limited (7%), collectively referred to as 
the "JV Partners". The area lies c. 1,300-metre water depth in the 
southern Porcupine Basin and is located c. 150 km off the west coast of 
Ireland.
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