PROVIDENCE RES. Barryroe Update, Strategic Review And Licence Update
13 February 2020 - 6:00PM
UK Regulatory
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.
(END) Dow Jones Newswires
February 13, 2020 02:00 ET (07:00 GMT)
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