Providence Resources P.l.c

Providence Resources P.l.c — H1 2017 Earnings Presentation

46 slides from Providence Resources P.l.c's earnings presentation, Sep 21, 2017

  1. Slide 1: Providence Resources 2017 Interim Results

    Photo courtesy of Stena Drilling Ltd. PROVIDENCE RESOURCES P.l.c. 2017 INTERIM RESULTS September 21st, 2017

  2. 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

  3. Slide 3: Agenda

    Agenda SECTION SLIDE Providence 4 H1 2017 Results 10 Post H1 2017 Events 15 Operational Update 17 The Providence Opportunity 42 3

  4. Slide 4: Providence

    & PROVIDENCE Providence

  5. Slide 5: Providence - Irish E&P Overview

    Providence - Irish E&P Overview IRELAND IS VERY ATTRACTIVE FOR E&P  Proven hydrocarbon systems in five basins A  Rockall Trough - A  Slyne Trough - B  Porcupine Basin - C  North Celtic Sea Basin - D Corrib  St George’s Channel Basin - E B  Two major gas fields developed to date  Kinsale Head

  6. Slide 6: Providence - Opportunity

    Providence - Opportunity CORPORATE STRATEGY  100% Irish focussed with portfolio approach to exploration and appraisal assets  Secure high equity stakes initially  Since 2007, secured US$ 200 million to invest in Ireland and leveraged in over US$ 300 million of industry capital co-investment  Por

  7. Slide 7: Providence - Opportunity

    Providence - Opportunity EXPLORATION & APPRAISAL STRATEGY  Leverage on its “first mover” acreage position in North Celtic Sea & Southern Porcupine Basins where it has more well & seismic data than any other Operator offshore Ireland  Proven capability in place to operate wells from shelf to ultra-

  8. Slide 8: Providence

    Providence BOARD OF DIRECTORS SENIOR MANAGEMENT TEAM 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&L

  9. Slide 9: Providence - Key Assets Location

    Providence KEY ASSETS - LOCATION BARRYROE (PVR - 80%) Field Size (2C): c. 346 MMBOE REC Net to PVR: c. 277 MMBOE REC Operator – Providence DUNQUIN SOUTH (PVR - 27%) Prospect Size (Pmean): c. 1.389 BBOE REC Net to PVR: c. 373 MMBOE REC Operator - Eni NEWGRANGE PROSPECT (PVR - 80%) Prospect Size (Pmea

  10. Slide 10: H1 2017 Results

    H1 2017 Results & PROVIDENCE 10

  11. Slide 11: H1 2017 Results

    H1 2017 Results  BARRYROE, NORTH CELTIC SEA BASIN (SEL 1/11) ₋ Farm-out discussions continued  OFFSHORE PETROLEUM LEASE 1 (OPL1), NORTH CELTIC SEA BASIN ₋ Latest mapping shows that this area has the potential to host significant incremental resources  DUNQUIN SOUTH, SOUTHERN PORCUPINE BASIN (FEL

  12. Slide 12: H1 2017 Results - cont'd

    H1 2017 Results - cont’d  DRUID/DROMBEG & DIABLO, SOUTHERN PORCUPINE BASIN (FEL 2/14)  CAIRN FARM-IN ₋ Farm out agreed with Capricorn, a wholly owned subsidiary of Cairn Energy PLC ₋ In consideration for Capricorn taking a 30% working interest in FEL 2/14, with an effective date of 1 July 2016, Ca

  13. Slide 13: H1 2017 Results - cont'd

    H1 2017 Results - cont’d  AVALON, SOUTHERN PORCUPINE BASIN (LO 16/27)  TOTAL FARM-IN ₋ Farm-in agreed with TOTAL E&P Ireland B.V. (“TOTAL”), a wholly owned subsidiary of TOTAL S.A ₋ In consideration for TOTAL taking a 50% working interest and operatorship in LO 16/27, TOTAL agreed to: ₋ Pay its pr

  14. Slide 14: H1 2017 Results - cont'd

    H1 2017 Results - cont’d  FINANCIAL RESULTS ₋ Operating Loss for the period of €3.916 million versus €2.216 million in H1 2016 ₋ Loss of €3.441 million versus €4.440 million in H1 2106 ₋ Loss per share of 0.58 cents versus 3.17 cents in H1 2016 ₋ At June 30, 2017, total cash & cash equivalents were

  15. Slide 15: Post H1 2017 Events

    Post H1 2017 Events & PROVIDENCE 15

  16. Slide 16: Post H1 2017 Results

    Post H1 2017 Results  BARRYROE, NORTH CELTIC SEA BASIN (SEL 1/11) ₋ Extension to the 1st phase of SEL 1/11 to July 2019 and overall licence extension of 2 years to July 2021 ₋ New 3D seismic uplift provides significantly enhanced visualization of Barryroe reservoir interval ₋ Planning now underway

  17. Slide 17: Operational Update

    Operational Update & PROVIDENCE 17

  18. Slide 18: Providence - Leadership Role in the Porcupine Basin

    Providence - Leadership Role in the Porcupine Basin 2004  Licensed DUNQUIN & SPANISH POINT  ExxonMobil (XOM) farm-in 80% to DUNQUIN 2006  Licence Option secured for NEWGRANGE with XOM  2D seismic acquired over DUNQUIN, NEWGRANGE, DRUID & DROMBEG  Chrysaor farm-in 38% to SPANISH POINT  Licence

  19. Slide 19: North Atlantic Source Rock Superhighway

    North Atlantic Source Rock Superhighway 19

  20. Slide 20: Porcupine Basin Licence Activity - 2004 vs 2017

    Porcupine Basin Licence Activity – 2004 vs 2017 20

  21. Slide 21: Increasing Activity in the Southern Porcupine & Celtic Sea

    Increasing Activity in the Southern Porcupine & Celtic Sea * Based on latest scouting reports 21

  22. Slide 22: Drilling - 53/6-1 Exploration Well

    Drilling – 53/6-1 Exploration Well  DRUID & DROMBEG DRILLING, SOUTHERN PORCUPINE BASIN (FEL 2/14) ₋ 2 prospects evaluated with a single vertical ₋ Spud – July 11th, 2017 exploration well ₋ Well designation - 53/6-1 ₋ Druid – c. 4,000 m BML ₋ Operator – Providence ₋ Porous water wet reservoir – RNS

  23. Slide 23: Drilling - 53/6-1 Exploration Well

    Drilling – 53/6-1 Exploration Well  DRUID & DROMBEG DRILLING, SOUTHERN PORCUPINE BASIN (FEL 2/14)  NEXT STEPS - WELL ₋ Complete operations and P&A the well ₋ Post well detailed analysis will be undertaken by the JV partners in order to ascertain the impact that these well data have on the petroleu

  24. Slide 24: Dunquin South, Southern Porcupine Basin

    Dunquin South, 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, ExxonMobil) ₋ Recovera

  25. Slide 25: Dunquin South, Southern Porcupine Basin

    Dunquin South, Southern Porcupine Basin DUNQUIN SOUTH PROSPECT 25

  26. Slide 26: Newgrange, Goban Spur Basin

    Newgrange, Goban Spur Basin  NEWGRANGE – PROSPECT DETAILS ₋ 500 line km 2D seismic survey carried out in 2006 ₋ Significant structure identified on the southern flank of the Porcupine Basin ₋ Very shallow (BML) four way dip closure covers c. 1,000 km2 ( equivalent to 4 North Sea blocks) ₋ Cretaceou

  27. Slide 27: Newgrange, Goban Spur Basin

    Newgrange, Goban Spur Basin 62/7-1 NEWGRANGE PROSPECT Top Chalk Base Chalk Top Jurassic 27

  28. Slide 28: Newgrange, Goban Spur Basin

    Newgrange, Goban Spur Basin 62/7-1 WELL c. 1,000 square kilometre four way dip closure (4 North Sea blocks), c. 300 metres of vertical relief with crest c. 500 metres BML at the provisional well location in c. 1,000 metre water depth…. 28

  29. Slide 29: Diablo, Southern Porcupine Basin

    Diablo, Southern Porcupine Basin  DIABLO – PROSPECT DETAILS ₋ Located c. 5,250m BML the Diablo prospect comprises a large (186 km2) pre-Cretaceous fault controlled four-way dip closure on the top of the pre-rift seismic marker ₋ The Diablo prospect is one of a number of faulted pre- Cretaceous terr

  30. Slide 30: Diablo, Southern Porcupine Basin

    Diablo, Southern Porcupine Basin 30

  31. Slide 31: Diablo, Southern Porcupine Basin

    Diablo, Southern Porcupine Basin  Pre-Cretaceous tilted fault block  186 sq.km of structural closure  Vertical relief of c. 600m  c. 7,500 metres TVDSS 31

  32. Slide 32: Avalon, Southern Porcupine Basin

    Avalon, Southern 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 NORT

  33. Slide 33: Avalon, Southern Porcupine Basin

    Avalon, Southern Porcupine Basin Avalon 33

  34. Slide 34: Barryroe, North Celtic Sea Basin

    Barryroe, 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 400 BC

  35. Slide 35: Barryroe, North Celtic Sea Basin

    Barryroe, North Celtic Sea Basin 35

  36. Slide 36: Barryroe, North Celtic Sea Basin

    Barryroe, North Celtic Sea Basin Location: North Celtic Sea Basin Quadrant 48 Water Depth: c. 100 m Well Designation: 48/24-K Drilling Objectives: Reservoir Presence & Quality; Connectivity; Fluid Type/Distribution Well Programme: Drill/Log/Abandon – no well test Contingent side-track/deepening opti

  37. Slide 37: Lower Jurassic Source Rock Maturity, North Celtic Sea Basin

    Lower Jurassic Source Rock Maturity, North Celtic Sea Basin A thermally mature rich marine source rock is thought to underlie most of the North Celtic Sea Basin… 37

  38. Slide 38: Lower Jurassic Source Rock Maturity, North Celtic Sea Basin

    Lower Jurassic Source Rock Maturity, North Celtic Sea Basin This Liassic source rock is evidenced by the Helvick oil and Dragon gas condensate discoveries… 38

  39. Slide 39: All Exploration Wells, North Celtic Sea Basin

    All Exploration Wells, North Celtic Sea Basin 2019: Well # 1 + ST after Lansdowne Oil & Gas Many of the wells in the North Celtic Sea Basin probed shallow objectives… 39

  40. Slide 40: Middle Jurassic/Deeper Exploration Wells, North Celtic Sea Basin

    Middle Jurassic/Deeper Exploration Wells, North Celtic Sea Basin 2019: Well # 1 + ST after Lansdowne Oil & Gas No wells to date have probed the most thermally mature central axis of the basin… 40

  41. Slide 41: Jurassic/Triassic Seismic Imaging Comparison, North Celtic Sea Basin

    Jurassic/Triassic Seismic Imaging Comparison, North Celtic Sea Basin VINTAGE 2D SEISMIC DATA QUALITY CURRENT 3D SEISMIC DATA QUALITY 48/23-3 48/24-6 & 48/24-1 48/24-7 48/24-3 & 48/24-10z 48/23-3 48/24-6 & 48/24-1 48/24-7 48/24-3 & 48/24-10z Seven Heads Seven Heads Reservoir Reservoir Basal Wealden S

  42. Slide 42: The Providence Opportunity

    The Providence Opportunity 42

  43. Slide 43: Forward Activities

    Forward Activities  NORTH CELTIC SEA BASIN ₋ BARRYROE Well Programme ₋ Twin track farm-out process ₋ Jurassic exploration assessment – BARRYROE & regionally ₋ Opportunistic application of new technologies to ‘squeeze’ existing data sets ₋ Continue to progress marginal fields assessment – HELVICK, H

  44. Slide 44: Forward Activities Outlook - Potential Activity Offshore Ireland

    Forward Activities 5 year Outlook – Potential Activity Offshore Ireland* Licence Operator Partners 2017 2018 2019 2020 2021 Providence Licences Druid/Drombeg/Diablo Providence (56%) Cairn (30%), Sosina (14%) Drilling Post Well Analysis Barryroe Providence (80%)1 Lansdowne (20%) Planning/Consent Surv

  45. Slide 45: Providence - Corporate Strategy

    Providence CORPORATE STRATEGY  100% Irish focussed with portfolio approach to exploration and appraisal assets  Secure high equity stakes initially  Since 2007, secured US$ 200 million to invest in Ireland and leveraged in over US$ 300 million of industry capital co-investment  Portfolio de-risk

  46. Slide 46: Thank You

    d 9 PROVIDENCE Providence Resou rces Leadership in the Irish Offshore THANK YOU STENA ICEMAX ____ Photo courtesy of Stena Drilling Ltd. Wer SS a ee

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