Providence Resources P.l.c — FY2013 Earnings Presentation
49 slides from Providence Resources P.l.c's earnings presentation, Jun 27, 2014
Slide 1: Financial Results for the period ending December 31st, 2013
Providence Resources P.l.c. Financial Results for the period ending December 31st, 2013 June 27th, 2014
Slide 2: Disclaimer
Disclaimer The document attached hereto and the presentation of which it forms part (together the “Materials”) have been prepared by Providence Resources plc (“Providence” or the “Company”) and are confidential and personal to you and the Materials are furnished to you as background information to p
Slide 3: Agenda
Agenda Tony O’Reilly Overview & Highlights Chief Executive Officer John O’Sullivan Operational Update Technical Director Simon Brett Financial Update Chief Financial Officer Tony O’Reilly Outlook Chief Executive Q&A 3
Slide 4: Overview & Highlights
Overview & Highlights Tony O’Reilly 4 Chief Executive Officer
Slide 5: Brief History of the Irish Offshore
BRIEF HISTORY OF THE IRISH OFFSHORE 5
Slide 6: The Irish E&P Sector – Large Area
The Irish E&P Sector – Large Area 6
Slide 7: Irish Offshore Resource Potential
The Irish– Offshore Ireland Resource– Potential Large Potential Ireland’s offshore basins are highly prospective but under-explored Assessments indicate a ‘Yet to Find’ Reserve potential of c. 10 billion barrels of oil equivalent on Atlantic Margin COUNTRY REGION SOURCE BBOE Ireland Atlantic Mar
Slide 8: Ireland Offshore – Large Potential Conjugate Margins
The Irish- Conjugate Ireland Offshore – Large Potential Margins 8
Slide 9: Irish E&P Sector – Track Record
The Irish– E&P Ireland Sector Track – History Record 158 wells drilled over the past 45 years Majority of these wells were drilled in the 1970’s/1980’s High proportion intersected hydrocarbons, but only 4 commercial gas fields: Kinsale Gas Field commenced production in 1978 Ballycotton gas
Slide 10: Ireland – Well Database
Ireland – Well Database Exploration and Appraisal Wells (1970 – 2013) Exploration wells: 130 Appraisal wells: 28 Total: 158 (43 exploration wells west of Ireland) 10
Slide 11: Ireland – Well Database
Ireland — Well Database Wells Spudded and Drilled Offshore Ireland 25 Development Wells @Exploration/Appraisal Wells 20 4 215 4 2 - r-) Pa s 2 5 310 4 5 4 o 4 Bean ann canna nnn nnn answer iiVPNNNNNNYNNNNNND ELELLRFELSERQCLSRSPSRSSSLSRSSSSBSESSSSSBSSSSSSSESSSSSSLSLSA SGILNVBETDHDNYNSBGGOASNHNBGARTAN
Slide 12: What Has Changed?
WHAT HAS CHANGED? 12
Slide 13: The Irish E&P Sector
The Irish E&P Sector TECHNOLOGY INFRASTRUCTURE PRICING FISCAL REGIME 13
Slide 14: Technology – Ireland Seismic Database
Technology Ireland – Seismic Database 66% of 2D seismic surveys 2% of 3D seismic surveys acquired offshore Ireland are pre-1990 vintage To 31 Mar 2014 14
Slide 15: Technology – Seismic Acquisition
Technology – Seismic Ireland – Seismic Acquired Acquisition 15
Slide 16: Technology – New Deep Exploration Seismic Acquisition
Technology North Celtic– Sea NewBasin Seismic Acquisition – Deep Exploration Some Recent/Planned Activity (2010-2014) • Providence - 3D seismic in Celtic Sea (Barryroe) • Kosmos - 3D seismic in Porcupine • Fastnet - 3D seismic in Celtic Sea • Polarcus - Multi-client 3D seismic in South Porcupine (Dr
Slide 17: Infrastructure – Ireland Gas Infrastructure
Infrastructure Ireland – Gas Infrastructure • Gas supply delivered via a network of c. 13,150km of pipelines • 2,380km of high pressure sub-sea and cross-country transmission pipe • 10,750km of lower pressure distribution pipe connecting customers to the system. • Gas Demand of c. 245 BCF/yr (185 BC
Slide 18: Infrastructure
Infrastructure Kinsale Infrastructure Whitegate oil refinery 18 Corrib Infrastructure Bantry Bay Oil Storage Facility
Slide 19: Fiscal Regime
FISCAL REGIME 19
Slide 20: Fiscal Regime – 2014 Terms
Fiscal Regime – 2014 Terms • New Terms • Announced on June 18th, 2014 • Different calculation methodology than previous terms, with a maximum state take of 55%, (depending on individual field size/profitability) • Imposed on new licences to be issued – so all existing licenses will remain governed b
Slide 21: Commodity Pricing
Commodity Pricing PROVIDENCE
Slide 22: Recent Developments
RECENT DEVELOPMENTS 22
Slide 23: Recent Developments
Recent Developments CELTIC SEA BASIN • 3 D seismic acquired over Barryroe (2011) • Drilling/testing of the Barryroe oil field (2012) SOUTHERN PORCUPINE BASIN • 2D acquired in Porcupine Basin over Dunquin (2006), Drombeg and Newgrange (2008) and Kosmos blocks (2013) • 3D acquired in Porcupine Basin o
Slide 24: Growing International Interest
Growing Some international of the Players interest 24
Slide 25: More Licence Activity – Ireland Licensing
More Licence Ireland Activity – Licensing 50 Number of Offshore Exploration Licences and Licensing Options at end-December each year (1970 - March 2014) 45 Exploration Licences End of year information for Licensing Options Licensing Options 1998-2013 prior to 1998 is in offsite archive and not readi
Slide 26: Highest Levels of Licensing Activity
Highest–levels Ireland of licence activity Licensing January 2011 March 2014 26
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Slide 28: Providence is at the centre of Irish offshore activity
Providence is at the centre of Irish offshore activity EXPLORE, APPRAISE AND DEVELOP IRISH OFFSHORE PORTFOLIO - Mixture of exploration prospects & appraisal projects - Focus on the Atlantic Margin - Carry out subsurface evaluation/ seismic - Leverage in relevant industry partners - Multi-basin drill
Slide 29: Providence is targeting 5 BBOE in 8 basins
Providence is targeting 5 BBOE in 8 basins EXPLORATION Asset Basin Operator % Dunquin North South Porcupine ExxonMobil 16.0% Dunquin South South Porcupine ExxonMobil 16.0% Cuchulain Goban Spur ENI 5.0% Drombeg South Porcupine Providence 80.0% Cama Porcupine Cairn 32.0% Wilde Porcupine Cairn 32.0% Be
Slide 30: Highlights
Highlights BARRYROE • Publication of NSAI Competent Person’s Report • Increase in area of SEL 1/11 • Commencement of farm out process DUNQUIN • Completion of drilling of Dunquin North well FARM OUTS • Farm in by Cairn into Spanish Point • Farm in by ABT Oil and Gas into Helvick/Dunmore LICENSING AUT
Slide 31: Operational Update
Operational Update John O’Sullivan 31 Technical Director
Slide 32: Appraisal
— a —_ _ == _ Appraisal
Slide 33: Barryroe Oil Field, North Celtic Sea Basin
Barryroe Oil Field, North Celtic Sea Basin • PROVIDENCE HOLDS 80% (Operator) • Partner is LANSDOWNE (20%) • AUDITED GROSS ON BLOCK RESOURCES OIP REC 2C/P50 2C/P50 Main Sands MMBO MMBO AUDIT Middle Wealden - oil 287 45 RPS Basal Wealden - oil 761 266 NSAI 1,048 311 Associated gas (BOE) 35 RPS/NSAI BA
Slide 34: Large, High Value Resource Base
Large, High Value Resource Base BIG RESOURCE BASE HIGH QUALITY CRUDE OIP REC Basal Wealden Oils 2C/P50 2C/P50 Main Sands MMBO MMBO In-Situ Viscosity (cP) 0.68 Middle Wealden - oil * 287 45 Soln GOR (scf/stb) 800 Basal Wealden - oil ** 761 266 API 43o Wax Content 17-20% 1,048 311 Incremental Sands LA
Slide 35: Spanish Point Gas Condensate Field, Northern Porcupine Basin
Spanish Point Gas Condensate Field, Northern Porcupine Basin • PROVIDENCE HOLDS 32% • Operator is Cairn (38%) • Other partners are Chrysaor (26%) and Sosina (4%) • SPANISH POINT - AUDITED GROSS RESOURCES • Tested well and 3D coverage • 225 MMBOE in-place (2C/P50) (Senergy) SPANISH POINT • 100 MMBOE
Slide 36: Dragon Gas Field, St George's Channel Basin
Dragon Gas Field, St George’s Channel Basin • PROVIDENCE HOLDS 100% • DRAGON – ESTIMATED REC RESOURCES • Tested well and 3D coverage • c. 60 BSCF REC (1C/P90) (PVR) • c. 200 BSCF REC (2C/P50) (PVR) • LICENCE ACREAGE - AUDITED GROSS RESOURCES • Both UK and Irish blocks held 100% by Providence DRAGON
Slide 37: Exploration
Exploration
Slide 38: Ireland – Conjugate Margins
North Atlantic Ireland Source - Conjugate Rock Superhighway Margins 38
Slide 39: Dunquin Prospects, Southern Porcupine Basin
Dunquin Prospects, Southern Porcupine Basin • PROVIDENCE HOLDS 16% • Operator is ExxonMobil (25.5%) • Other partners are ENI (27.5%), Repsol (25%), Atlantic Petroleum (4%) and Sosina (2%) • REGIONAL ACTIVTY • 2D (2006) coverage across Dunquin Ridge • Kosmos Energy acquiring large 3D seismic survey i
Slide 40: Drombeg Prospect, Southern Porcupine Basin
Drombeg Prospect, Southern Porcupine Basin • PROVIDENCE HOLDS 80% • Operator is Providence • Partner is Sosina (20%) • REGIONAL ACTIVTY • 2D (2008) coverage across area • Drilling of Dunquin North exploration well (2013) • Kosmos Energy targeting similar Lower Cretaceous sandstone play – major regio
Slide 41: Newgrange Prospect, Goban Spur Basin
Newgrange Prospect, Goban Spur Basin • PROVIDENCE HOLDS 80% • Operator is Providence • Partner is Sosina (20%) • REGIONAL ACTIVTY • 2D (2008) coverage across area • Dunquin exploration well (2013) • Kosmos Energy 3D seismic surveying • Woodside enter the basin • Oil discoveries in conjugate Flemish
Slide 42: Polaris Prospect, Rathlin Basin
Polaris Prospect, Rathlin Basin • PROVIDENCE HOLDS 100% • One onshore licence over Rathlin Island POLARIS • Six block offshore licence in Rathlin Basin • REGIONAL ACTIVTY • Hydrocarbon concept proven by onshore Ballinalea-1 well (drilled by Rathlin Energy) • Well thought to be located close to OWC i
Slide 43: Kish Prospect, Kish Bank Basin
Kish Prospect, Kish Bank Basin • PROVIDENCE HOLDS 50% • Operator is Providence • Partner (50%) is Kinsale Energy (PETRONAS) KISH • REGIONAL ACTIVTY • 2D seismic coverage across basin • PROVIDENCE ACTIVITY • Major structure identified in basin • P50 REC – 250 MMBO (PVR) Basin – Kish Bank Basin Distan
Slide 44: Silverback Prospect, South Celtic Sea Basin
Silverback Prospect, South Celtic Sea Basin • PROVIDENCE HOLDS 100% • Operator is Providence • REGIONAL ACTIVTY • PGS long offset Geostreamer 2D seismic (2013) • Fastnet Oil & Gas pursuing Triassic oil objective in NE sector of the basin • PROVIDENCE ACTIVITY SILVERBACK • Licensing Option covers c.
Slide 45: Financial Update
Financial Update Simon Brett 45 Chief Financial Officer
Slide 46: Financial Update – Key Financial Highlights
Financial Update KEY FINANCIAL HIGHLIGHTS • Sale of UK Onshore business for $66 million • Repayment of Deutsche Bank Pre-paid Swaps - $44 million • Cash (& cash equivalents) at December 31st, 2013 was €8.998 million • Operating loss of €7.230 million • Loss for the year attributable to equity holder
Slide 47: Financial Update – Key Financial Figures
Financial Update KEY FINANCIAL FIGURES For the year ending December 31st In euros (unless otherwise stated) FY 2013 FY 2012 Operating Loss € (7.230) million € (5.432) million Loss from continuing operations € (7.768) million € (8.233) million Profit /(loss) from discontinued € 4.971 million € (15.95
Slide 48: Outlook
Outlook 48
Slide 49: Multi-Basin Drilling Programme - Partnership
Multi-Basin Drilling Programme - Partnership 1. Barryroe Oil Field, North Celtic Sea Basin (PVR-80%) 4 - Providence Operated; Partner – Lansdowne - 346 MMBOE REC 2. Dunquin Oil Prospects, South Porcupine (PVR-16%) - ExxonMobil Operated; Partners – ENI, Repsol, Atlantic Petroleum, Sosina - Under Revi
Providence Resources P.l.c. — FY2013 Earnings Presentation on 6ix