Providence Resources P.l.c — FY2017 Earnings Presentation
25 slides from Providence Resources P.l.c's earnings presentation, May 2018
Slide 1: Providence Resources P.l.c FY 2017 Results
Photo courtesy of Stena Drilling Ltd. Providence Resources P.l.c FY 2017 Results PVR LN / PRP ID May 2018 AIM / ESM
Slide 2: Disclaimer
Disclaimer Important: You must read the following before continuing. By attending any oral presentation made in conjunction with this presentation or by accepting this presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the content
Slide 3: Agenda
Agenda SECTION SLIDE Ireland - Very Attractive for E&P 4 Providence – Portfolio, Partners & People 5 FY 2017 Results 7 Post Year End Events 12 Current Projects & Prospects 16 Providence Opportunity 23 3
Slide 4: Ireland – Very Attractive for E&P
Ireland – Very Attractive for E&P Proven hydrocarbon 2 Major gas fields World leading 5 1 oil appraisal systems in basins project - fiscal terms Barryroe Leading Good Port & international 2015 Infrastructure E&Pcompanies network – Atlantic Margin – connected to operating in significant interest Euro
Slide 5: Providence – Portfolio, Partners & People
Providence – Portfolio, Partners & People PORTFOLIO PARTNERS PEOPLE • 100% Ireland focused • Track record of successfully • Dedicated in-house partnering with majors and technical & operational • Significant equity in super majors teams – a unique skill set material prospects & offshore Ireland proj
Slide 6: World Class Assets & Partners
World Class Assets & Partners SHALLOW DEEPWATER OFFSHORE OFFSHORE BARRYROE, DUNQUIN, DIABLO, HOOK HEAD, NEWGRANGE, AVALON HELVICK, DUNMORE SPANISH POINT Photo c ourtesy of Stena Drilling Ltd. 6
Slide 7: Providence - Highlights
Providence - Highlights Concluded 3 Farm-outs generated over Drilled Exploration deepest water 45 million $ depth ever Farm-out in incremental offshore NW capital Europe deals Signed TOTAL New 3D became Barryroe data at Operator Dunquin Farm-Out of 2 Licences Deal 7
Slide 8: FY 2017 Results
FY 2017 Results ▪ Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11) ₋ Farm-out discussions continued – Period of exclusivity granted ₋ Extension to 1st phase of SEL 1/11 to July 2019 and overall license to July 2021 ₋ New 3D seismic uplift provided significantly enhanced visualisation of Barry
Slide 9: FY 2017 Results – cont’d
FY 2017 Results – cont’d ▪ Cairn Farm-in to 30% of FEL 2/14 ₋ Farm-in by Cairn where Cairn paid 45% (US$18.9 million) of 53/6-1 well costs, subject to a gross well cap of US$42 million, and thereafter at 30% cost share ₋ Cairn made a cash payment of US$2.82 million on a pro-rata 80/20 basis to Provi
Slide 10: FY 2017 Results – cont’d
FY 2017 Results – cont’d ▪ Avalon Oil Prospect, Porcupine Basin (LO 16/27) ₋ Generated calibrated Petroleum Systems Model (“PSM” c.48,000 km2), which supports the potential of a working petroleum system ₋ Model demonstrated that Avalon could potentially access a TOTAL hydrocarbon resource charge of
Slide 11: FY 2017 Results – cont’d
FY 2017 Results – cont’d FINANCIAL RESULTS ▪ Operating Loss for the period of €21.402 million versus €18.844 million in 2016 ▪ Loss of €20.419 million versus €20.546 million in 2016 ▪ Loss per share of 3.42 cents versus 5.80 cents in 2016 ▪ At December 31, 2017 total cash & cash equivalents of €19.6
Slide 12: Barryroe - Overview
Post Year End - Barryroe - Overview • Successfully drilled and flow tested by Providence in 2012 • 50km offshore in 100m water depth • Significant oil accumulation - 2C TOTAL resources of 346 MMBOE REC (NSAI) • Low risk appraisal - shallow oil bearing reservoir, normally pressured • Deeper Jurassic
Slide 13: Barryroe - Farm-out to APEC
Post Year End - Barryroe - Farm-out to APEC Significant Financial Appraisal Partners & Operational through with Providence capacity to take retaining 40% of a major asset Barryroe from ….. Production No risk and Potential Potential no upfront testing of the $10m future deeper Jurassic cash injection
Slide 14: Barryroe - Farm-out to APEC cont’d
Post Year End - Barryroe - Farm-out to APEC cont’d Farm-out (Announced March 28, 2018) • APEC Energy Enterprise Ltd. has a strategic partnership with China Oilfield Services Co., Ltd. (COSL) & JIC Capital Management Limited (JIC) • COSL is a majority owned subsidiary of the Chinese state-owned compa
Slide 15: Barryroe – Farm-out to APEC cont’d
Post Year End - Barryroe – Farm-out to APEC cont’d Main Commercial Terms • APEC to pay their pro rata share (50%) of the drilling programme costs • APEC to finance Providence’s (40%) & Lansdowne’s (10%) share of the drilling programme costs – Financing by way of a non-recourse loan • Loan secured ag
Slide 16: Current Prospects & Projects – Appraisal / Exploration
Current Prospects & Projects – Appraisal / Exploration BARRYROE SPANISH HELVICK / HOOK DIABLO AVALON DUNQUIN NEWGRANGE POINT DUNMORE HEAD SOUTH (40.0%)* (58.0%) (56.3%/65.3%) (72.5%) (28.0%) (40.0%) (26.8%) (80.0%) • Farm-out to • Farm-out • Progress • Farm-out • Farm-out • Farm-out • Eni assume • P
Slide 17: Leadership Offshore Ireland
Leadership Offshore Ireland 1997-2005 2006-7 2008-10 2011-13 2014-15 2016-17 2018-19 •1997 – PVR •Newgrange •ExxonMobil •Farm-out of •3D seismic •Schlumberger •Farm-out of established license option assumed op. 25% of acquired over Collaborative 50%* of Barryroe •ESM /1997 with of Dunquin Dunquin to
Slide 18: Leadership Offshore Ireland – 2004 vs 2018
Leadership Offshore Ireland – 2004 vs 2018 18
Slide 19: Dunquin North vs Dunquin South – 2D Seismic
Post Year End - Dunquin North vs Dunquin South – 2D Seismic DUNQUIN NORTH DUNQUIN SOUTH (DRILLED) (UNDRILLED) FAULT CONTROL SEA-LEVEL CONTROL NW SE 3D seismic substantially differentiates between Dunquin North & Dunquin South 19
Slide 20: Dunquin North Well Results
Post Year End - Dunquin North Well Results • c. 600 MMBO low saturation oil accumulation Lower Cretaceous carbonate reservoir 20
Slide 21: Newgrange Prospect – 2D Seismic
Post Year End - Newgrange Prospect – 2D Seismic 62/16-A 62/7-1 NE SW (Planned) (Drilled) • Contract signed with Gardline for site survey acquisition in Q3 2018 • Farm-out process ongoing 21
Slide 22: Avalon Prospect
Post Year End - Avalon Prospect Avalon Dunquin North Dunquin South • TOTAL assume Operatorship • Application made to convert from Licensing Option to Frontier Exploration Licence 22
Slide 23: Providence Opportunity - Market Backdrop
Providence Opportunity - Market Backdrop MARKET & INDUSTRY PVR - COMPETITIVE ADVANTAGE • Oil production must increase to meet • 100% Irish focused portfolio demand • >20 years drilling experience • Demand supported by robust global • 1st mover in the “right postcode” alongside economy significant pl
Slide 24: Outlook – Potential Key Activity Offshore Ireland
Outlook – Potential Key Activity Offshore Ireland# Licence Operator Partners 2017 2018 2019 2020 2021 Providence Licences PROVIDENCE (28%) Post Well DRUID/DROMBEG/DIABLO TOTAL (35%) Cairn (30%) Drilled Analysis Sosina (7%) PROVIDENCE (40%)* APEC Energy Enterprise Ltd (50%)* BARRYROE Planning/Consent
Slide 25: Corporate Information
Corporate Information BOARD OF DIRECTORS KEY PERSONNEL Pat Plunkett James McCarthy Tony O’Reilly Fergal Murphy Chairman Non-Executive Director Chief Executive Geophysical Consultant Tony O’Reilly Dr. John O’Sullivan 27 years experience 20 years experience Chief Executive Technical Director ARCON, C&
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