Providence Resources P.l.c — H1 2016 Earnings Presentation
43 slides from Providence Resources P.l.c's earnings presentation, 2016
Slide 1: Interim Results 2016 Leading Offshore Ireland
Interim Results 2016 Leading Offshore Ireland Courtesy Ocean Rig
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 Providence Today 4 Focussed on Offshore Ireland 6 H1 2016 Results 9 Post June 30 Events 14 Portfolio 18 Leadership Role in the Porcupine Basin 21 Druid Drilling – 2017 37 The Providence Opportunity 41 3
Slide 4: Providence Today
o PROVIDENCE Providence Today
Slide 5: Providence Today
Providence Today BALANCE SHEET RESTRUCTURED AND FINANCIAL POSITION SECURED Providence now debt free Financial resources in place to execute programme SHAREHOLDER ENDORSED STRATEGY Notable shareholders include – (as of Sept 28, 2016) : • M&G Investments 14.67% • The Capital Group 9.71% • Hender
Slide 6: Focussed on Offshore Ireland
Focussed on Offshore Ireland 6
Slide 7: Focused on Offshore Ireland
Focused on Offshore Ireland Providence is Central to the Irish E&P Space Key Management Focused on early stage exploration & appraisal opportunities Tony O’Reilly Fergal Murphy Chief Executive Geophysical Consultant Over 30 years exploring offshore Ireland 26 years experience 19 years experience A
Slide 8: Focused on Offshore Ireland
Focused on Offshore Ireland Key Assets - Location Key Assets – Resource Estimates 1. Barryroe Oil Project (PVR - 80%) Field Size (2C): c. 346 MMBOE REC Net to PVR: c. 277 MMBOE REC 2. Hook Head Oil Project (PVR - 72.5%) Field Size (2C): c. 35 MMBOE REC Net to PVR: c. 25 MMBOE REC 3. Spanish Point Ga
Slide 9: H1 2016 Results
o PROVIDENCE H1 2016 Results
Slide 10: H1 2016 Results
H1 2016 Results Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11) ₋ Upper C-Sand GIIP within SEL 1/11 & OPL1 Option area now estimated at c. 400 BSCF ₋ Well cost estimates for single vertical well c. US$25 million Spanish Point Gas Condensate Project, Northern Porcupine Basin (FEL 2/04 & 4
Slide 11: H1 2016 Results – cont’d
H1 2016 Results – cont’d Newgrange Prospect, Goban Spur Basin (FEL 6/14) ₋ Seismic supports top seal and reservoir presence for Cretaceous target ₋ Pre-Cretaceous structural closure far larger than previously mapped ₋ Adjacent third party Licensing Options awarded in 2015 Atlantic Margin Licensing
Slide 12: H1 2016 Results – cont’d
H1 2016 Results – cont’d FINANCIAL RESULTS Further reduction in administration costs and legal expenses Operating loss for the period of €2.216 million (€3.787 million in H1 2015) Loss of €4.440 million (€8.425 million in H1 2015) Loss per share of 3.17 cents (7.94 cents in H1 2015) At Jun
Slide 13: H1 2016 Results – cont’d
H1 2016 Results – cont’d TRANSOCEAN LITIGATION April 2016 Court of Appeal Ruling ₋ Mandated payment of c.US$6.77 million to Transocean ₋ Mandated payment of Transocean’s legal costs (plus interest) of the appeal in the sum of gross £225,000 and £183,000 Outstanding Matters at June 30, 2016 ₋ Par
Slide 14: Post June 30 Events
o PROVIDENCE Post June 30 Events 14
Slide 15: Post June Events
Post June 30 Events Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11) ₋ Farm out discussions continue Druid/ Drombeg Oil Prospects, Southern Porcupine Basin (FEL 2/14) ₋ Election made to enter Phase 2 of Licence (includes the commitment of one exploration well) ₋ Druid 2017 Drilling Progra
Slide 16: Post June Events – cont’d
Post June 30 Events – cont’d Spanish Point Gas Condensate Project, Northern Porcupine Basin (FEL 2/04) ₋ Farm out campaign continues Dunquin Oil Prospect, Southern Porcupine Basin (FEL 3/04) ₋ ENI assumes Operatorship following withdrawal of XOM ₋ Providence’s equity increased to 26.846%* PLACIN
Slide 17: Post June Events – cont’d
Post June 30 Events – cont’d POST FINANCING EVENTS Melody Debt Retired ₋ The Company is debt free Court mandated gross payment of $6.7 million plus £183k interest made to Transocean ₋ Part 36 matter to be heard in the Commercial Court in London on October 14, 2016 BOARD CHANGES Appointment of
Slide 18: Portfolio
o PROVIDENCE Portfolio 18
Slide 19: Barryroe Oil Field, North Celtic Sea Basin
Barryroe Oil Field, North Celtic Sea Basin Barryroe - Project Details • 6 wells drilled (4 tested) & 3D seismic coverage • 4 stacked reservoir systems • Resource audits - RPS (2011) & NSAI (2013) - 346 MMBOE REC • Field size covers area of c. 300 km2 Upside Potential • Tested C-Sand gas – est. GIIP
Slide 20: Spanish Point Gas Condensate Field, Northern Porcupine
Spanish Point Gas Condensate Field, Northern Porcupine Spanish Point – Project Details • Tested well and 3D PSDM seismic coverage • Senergy CPR Resource Audit (2011) - 2C c. 97 MMBOE REC • Updated Operator estimates (2015) - HIIP of c. 730 MMBOE and combined contingent plus prospective recoverable r
Slide 21: Leadership Role in the Porcupine Basin
Leadership Role in the Porcupine Basin 21
Slide 22: Providence’s Leadership Role in the Porcupine Basin
Providence’s Leadership Role in the Porcupine Basin 2004 • Licensed Dunquin & Spanish Point December 2004 2006 • ExxonMobil (XOM) farm in to Dunquin • Licence Option secured for Newgrange with XOM • 2D seismic acquired over Dunquin, Newgrange & Druid/Drombeg 2008 • Chrysaor farms into Spanish Point
Slide 23: North Atlantic Source Rock Superhighway
North Atlantic Source Rock Superhighway 23
Slide 24: Porcupine Basin Licence Activity – 2004 vs 2016
Porcupine Basin Licence Activity – 2004 vs 2016 December 2004 June 2016 24
Slide 25: Schlumberger Exploration Collaboration Project
Schlumberger Exploration Collaboration Project September 2015 • Providence and Schlumberger sign Strategic Exploration Collaboration Agreement • Project commenced primarily designed to focus on the Druid, Drombeg, Newgrange and Dunquin South exploration prospects • 30 technical professionals worked
Slide 26: Results of Schlumberger Exploration Collaboration Project
Results of Schlumberger Exploration Collaboration Project Druid & Drombeg Druid Multi-domain analysis confirms that the 3D seismic responses from the Druid and Drombeg prospects are consistent with the presence of two large vertically stacked stratigraphically Drombeg trapped oil accumulations T
Slide 27: Druid/Drombeg/Diablo Prospects – 3D Seismic Reflection Profile
Druid/Drombeg/Diablo Prospects – 3D Seismic Reflection Profile Druid Drombeg Diablo 27
Slide 28: Druid Oil Prospect, Southern Porcupine Basin
Druid Oil Prospect, Southern Porcupine Basin Druid - Prospect Details • Two fans c. 1,750 m BML and structurally up-dip from a potential significant NEAR STACK fluid escape feature from the underlying pre-Cretaceous Diablo Ridge • Cumulative in-place un-risked prospective resources of 3.180 BBO (PMe
Slide 29: Druid Oil Prospect – Depth Conformant AVO Anomaly
Druid Oil Prospect – Depth Conformant AVO Anomaly SPECTRAL DECOMPOSITION DEPTH CONFORMANT AVO AVO product (Far – Near)*Far 29
Slide 30: Drombeg Oil Prospect, Southern Porcupine Basin
Drombeg Oil Prospect, Southern Porcupine Basin Drombeg - Prospect Details • Located c. 2,750 m BML and structurally up-dip from a potential significant fluid escape feature from the underlying pre-Cretaceous Diablo Ridge • In-place un-risked prospective resource of 1.915 BBO (PMean) • Pre-stack seis
Slide 31: Drombeg Oil Prospect, Southern Porcupine Basin
Drombeg Oil Prospect, Southern Porcupine Basin 31
Slide 32: Druid/Drombeg – Vp/Vs Supports Two Stacked Sandstone Rich Fan Systems
Druid/Drombeg – Vp/Vs Supports Two Stacked Sandstone Rich Fan Systems Well 53/6-A 32
Slide 33: Druid/Drombeg – Provisional Well Location
Druid/Drombeg – Provisional Well Location 33
Slide 34: Newgrange Gas Prospect, Goban Spur Basin
Newgrange Gas Prospect, Goban Spur Basin Newgrange - Prospect Details • 500 line km 2D seismic survey carried out in 2006 • Significant structure identified in basin • Cretaceous target c. 400 metres BML in c. 1,000m water depth • BCU structural closure covers c. 1800 km2 (1,000 km2 within Providenc
Slide 35: Dunquin South Oil Prospect, Southern Porcupine Basin
Dunquin South Oil Prospect, Southern Porcupine Basin Dunquin South - Prospect Details • 2nd of two isolated carbonate platforms – Dunquin North & South • Dunquin North exploration well drilled in 2013 • Dunquin South – Prospective Resources • Hydrocarbons in place – c. 3.475 BBOE (Pmean, XOM) • Reco
Slide 36: Avalon Oil Prospect, Porcupine Basin
Avalon Oil Prospect, Porcupine Basin Avalon - Prospect Details • Mapped on 2D vintage seismic data as part of recent 2015 Irish AMLR • Significant Palaeocene basin floor stratigraphic trap identified in basin axis • Target is c. 2,500 m BML in c. 1,300 m water depth • Located close to the Dunquin No
Slide 37: Druid Drilling - 2017
o PROVIDENCE Druid Drilling - 2017 37
Slide 38: Druid Drilling – Provisional Well Location Schematic
Druid Drilling – Provisional Well Location Schematic DRILLING – 2017 Well designated 53/6-A Projected spud date – June 2017 Lloyds Register (LR) appointed Well Management Company Invitation to tender for Rig contract issued to the market Druid drilling cost now estimated at c. $35 million
Slide 39: Druid Drilling – Well Management: Lloyds Register at a glance
Druid Drilling – Well Management Lloyds Register at a glance > 9,000 Employees +60,000 Clients, worldwide from SMEs to Fortune 500 3 Regions companies £1 billion Turnover 3 Business divisions 39
Slide 40: Drilling - Druid/Drombeg – Global Analogues
Drilling - Druid/Drombeg – Global Analogues 40
Slide 41: The Providence Opportunity
The Providence Opportunity 41
Slide 42: The Providence Opportunity
The Providence Opportunity IRELAND Proven hydrocarbon systems 2015 Atlantic Margin Licensing Round and Providence’s Schlumberger collaboration - major catalysts Attractive fiscal regime Established ports/infrastructure and connected to the European gas supply network PROVIDENCE Uniquely po
Slide 43: Q&A Session
Q&A Session www.providenceresources.com
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