Providence Resources P.l.c

Providence Resources P.l.c — Shareholder Meeting (May 2017)

43 slides from Providence Resources P.l.c's shareholder meeting presentation, May 24, 2017

  1. Slide 1: AGM Presentation

    AGM PRESENTATION May 24th 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 INTRODUCTION & AGM RESOLUTIONS  Pat Plunkett, Chairman OPERATIONAL & TECHNICAL UPDATE  Tony O’Reilly, Chief Executive  Dr. John O’Sullivan, Technical Director CLOSING REMARKS  Pat Plunkett, Chairman Q&A 3

  4. Slide 4: Introduction & AGM Resolutions

    INTRODUCTION & AGM RESOLUTIONS Pat Plunkett Chairman 4

  5. Slide 5: Providence: Ireland Is Attractive for E&P

    Providence IRELAND IS ATTRACTIVE FOR E&P  Proven hydrocarbon systems  Attractive geopolitical environment and attractive fiscal regime  2015 Atlantic Margin Licensing Round and Providence/ Schlumberger Exploration Collaboration Project - major catalysts  Established ports/infrastructure and conn

  6. Slide 6: Board of Directors and Key Management

    Providence BOARD OF DIRECTORS KEY MANAGEMENT Pat Plunkett James McCarthy Tony O’Reilly Fergal Murphy Chairman Non-Executive Director Chief Executive Geophysical Consultant 27 years experience 20 years experience Tony O’Reilly Dr. John O’Sullivan ARCON, C&L Britsurvey, Lynx Chief Executive Technical

  7. Slide 7: Providence - Focused on Offshore Ireland

    Providence - Focused on Offshore Ireland KEY ASSETS - LOCATION KEY ASSETS – RESOURCE ESTIMATES BARRYROE OIL PROJECT (PVR - 80%) Field Size (2C): c. 346 MMBOE REC Net to PVR: c. 277 MMBOE REC DRUID OIL PROSPECT (PVR - 56%) Prospect Size (Pmean): c. 3.180 BBO STOIIP Net to PVR: c. 1.780 BBO STOIIP DRO

  8. Slide 8: Providence Opportunity

    Providence Opportunity FINANCIAL STRENGTH  Capital raise fixed Balance Sheet  Providence now debt free  Concluded TO litigation  Provided working capital to finance cost of drilling the Druid exploration well in 2017  Cash of €31.4 million (31/12/16) COMMERCIAL FLEXIBILITY  Allowed commercial

  9. Slide 9: AGM Resolutions

    AGM Resolutions ORDINARY BUSINESS 1. To receive and consider the Directors’ Report and Financial Statements for the year ended 31 December 2016 2. (a) To re-elect Mr. Pat Plunkett as a Director (b) To re-elect Mr. Tony O’Reilly as a Director (c) To re-elect Dr. John O’Sullivan as a Director 3. To au

  10. Slide 10: Operational & Technical Update

    OPERATIONAL & TECHNICAL UPDATE Tony O’Reilly Chief Executive 10

  11. Slide 11: FY 2016 Results

    FY 2016 Results  Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11) ₋ 2 year extension to the 1st phase of SEL 1/11 to July 2017 and an extension to 2nd phase term to July 2019 ₋ Area of SEL 1/11 increased by c.118 km2 to accommodate mapped potential extensions of Barryroe, formerly located wi

  12. Slide 12: FY 2016 Results – cont’d

    FY 2016 Results – cont’d  Dunquin Oil Prospect, Southern Porcupine Basin (FEL 3/04) ₋ Dunquin North post-well technical studies continuing with evidence of more significant residual oil ₋ Adjacent third party Licensing Options awarded in 2016 from the 2015 Atlantic Margin Licensing Round ₋ Eni appo

  13. Slide 13: FY 2016 Results – cont’d

    FY 2016 Results – cont’d  Newgrange Prospect, Goban Spur Basin (FEL 6/14) ₋ Schlumberger Collaboration Project supports top seal and reservoir presence for Cretaceous target ₋ Prospective Resource Potential of c. 13.6 TSCF GIIP or c. 9.2 BBO STOIIP ₋ Top Seal capacity analysis indicates potential f

  14. Slide 14: FY 2016 Results – cont’d

    FY 2016 Results – cont’d FINANCIAL RESULTS  Operating Loss for the period of €18.844 million versus €13.080 million (2015)  Loss of €20.546* million versus €24.147 million (2015)  Loss per share of 5.80 cents versus 19.57 cents (2015)  At December 31, 2016, total cash and cash equivalents were €

  15. Slide 15: Post FY 2016 Events

    Post FY 2016 Events  Druid & Drombeg Oil Prospects, Southern Porcupine Basin (FEL 2/14) ₋ Farm-in by Cairn for 30% equity participation in return for: ₋ the payment of 30% of sunk costs ₋ payment of 45% of well costs (up to a gross well cost of $42 million) ₋ payment of 40% of costs for a contingen

  16. Slide 16: Druid & Drombeg – Implications of Cairn Farm-in Deal

    Druid & Drombeg – Implications of Cairn Farm-in Deal ORIGINAL POSITION - JULY 2016 DRILLING: % COST % DRUID ONLY COMPANY EQUITY $'S OF COST PROVIDENCE RESOURCES PLC 80.0% 28,000,000 80.0% $35 MILLION SOSINA EXPLORATION LTD 20.0% 7,000,000 20.0% WELL COST 100.0% 35,000,000 100.0% PVR’S COST = $28 MIL

  17. Slide 17: Druid & Drombeg – Implications of Cairn Farm-in Deal

    Druid & Drombeg – Implications of Cairn Farm-in Deal ORIGINAL POSITION - JULY 2016 % COST % COMPANY EQUITY $'S OF COST PROVIDENCE RESOURCES PLC 80.0% 28,000,000 80.0% SOSINA EXPLORATION LTD 20.0% 7,000,000 20.0% WITH CAIRN 100.0% 35,000,000 100.0% FARM-IN PVR’S CAIRN FARM-IN – MAY 2017 COST REDUCED

  18. Slide 18: Druid & Drombeg – Implications of Cairn Farm-in Deal

    Druid & Drombeg – Implications of Cairn Farm-in Deal ORIGINAL POSITION - JULY 2016 % COST % COMPANY EQUITY $'S OF COST PROVIDENCE RESOURCES PLC 80.0% 28,000,000 80.0% SOSINA EXPLORATION LTD 20.0% 7,000,000 20.0% 100.0% 35,000,000 100.0% CAIRN FARM-IN – MAY 2017 EXPLORATION WELL CARRY CAIRN PAYS 45%

  19. Slide 19: Druid & Drombeg – Implications of Cairn Farm-in Deal

    Druid & Drombeg – Implications of Cairn Farm-in Deal ORIGINAL POSITION - JULY 2016 % COST % COMPANY EQUITY $'S OF COST PROVIDENCE RESOURCES PLC 80.0% 28,000,000 80.0% SOSINA EXPLORATION LTD 20.0% 7,000,000 20.0% 100.0% 35,000,000 100.0% CAIRN FARM-IN – MAY 2017 EXPLORATION WELL CARRY CAIRN PAYS 45%

  20. Slide 20: Providence – Forward Programme

    Providence – Forward Programme  Drilling in 2017 DRUID 3.2 BBO STOIIP (Pmean) DROMBEG 1.9 BBO STOIIP (Pmean) 5.1 BBO STOIIP (Pmean)  3D seismic in 2017 Licence 1,800 km2 3D seismic over DUNQUIN  Target farm-outs & drilling in 2018 and beyond BARRYROE 346 MMBOE (2C REC) DRUID & DROMBEG 5.1 BBO STO

  21. Slide 21: Operational & Technical Update

    OPERATIONAL & TECHNICAL UPDATE Dr. John O’Sullivan Technical Director 21

  22. Slide 22: 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

  23. Slide 23: Spanish Point Gas Field, Northern Porcupine

    Spanish Point Gas 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 resources of

  24. Slide 24: Providence - Leadership Role in the Porcupine Basin

    Providence - Leadership Role in the Porcupine Basin 2004  Licensed DUNQUIN & SPANISH POINT 2006  ExxonMobil (XOM) farm-in to DUNQUIN  Licence Option secured for NEWGRANGE with XOM  2D seismic acquired over DUNQUIN, NEWGRANGE, DRUID &DROMBEG 2008  Chrysaor farm-in to SPANISH POINT  Licence Opti

  25. Slide 25: 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, ExxonMobil

  26. Slide 26: Dunquin South Oil Prospect, Southern Porcupine Basin

    Dunquin South Oil Prospect, Southern Porcupine Basin 26 26

  27. Slide 27: North Atlantic Source Rock Superhighway

    North Atlantic Source Rock Superhighway 27

  28. Slide 28: Porcupine Basin Licence Activity – 2004 vs 2017

    Porcupine Basin Licence Activity – 2004 vs 2017 28

  29. Slide 29: Schlumberger Exploration Collaboration Project

    Schlumberger Exploration Collaboration Project 2015 2015  Providence and Schlumberger sign agreement to carry out Exploration Collaboration Project  Project commenced primarily designed to focus on the DRUID & DROMBEG, NEWGRANGE and DUNQUIN SOUTH exploration prospects  30 technical professionals

  30. Slide 30: Results of Schlumberger Exploration Collaboration Project

    Results of Schlumberger Exploration Collaboration Project DRUID&&DROMBEG DRUID DROMBEG DRUID  Multi-domain analysis confirms that the 3D seismic responses from the DRUID & DROMBEG prospects are consistent with the presence of two large vertically stacked stratigraphically trapped DROMBEG oil accumu

  31. Slide 31: 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

  32. Slide 32: Druid Oil Prospect, Southern Porcupine Basin

    Druid Oil Prospect, Southern Porcupine Basin 32 32

  33. Slide 33: 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

  34. Slide 34: 2017 Drilling Programme – Druid & Drombeg

    2017 Drilling Programme – Druid & Drombeg DRILLING DRILLING–- 2017 2017 Well 53/6-A  DRUID & DROMBEG prospects to be evaluated with a single vertical exploration well  Well currently designated 53/6-A  Lloyds Register (LR) appointed Well Management Company  Stena Drilling awarded drilling contra

  35. Slide 35: Stena IceMAX Drillship

    Stena IceMAX Drillship  Ice class drillship  Build Year – 2012  Flag – UK  DP 3 station keeping  Water depth rating – 3,000m  Drilling depth rating – 10,000 metres  Accommodation – 180 persons 35

  36. Slide 36: Drilling - Druid & Drombeg – Global Analogues

    Drilling - Druid & Drombeg – Global Analogues 36

  37. Slide 37: 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

  38. Slide 38: Newgrange Oil/Gas Prospect, Goban Spur Basin

    Newgrange Oil/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 PVR l

  39. Slide 39: Potential Activity in Providence’s Core Assets

    Potential Activity in Providence’s Core Assets* 2017 2018 2019 2020 2021 DRUID & DROMBEG DRILLING POST WELL ANALYSIS DRILLING BARRYROE SITE SURVEY FARM-OUT DRILLING POST WELL ANALYSIS DRILLING DUNQUIN 3D POST 3D ANALYSIS DRILLING AVALON STUDIES 3D (TBD) DRILLING NEWGRANGE 3D FARM-OUT DRILLING * Mana

  40. Slide 40: Increasing Activity in the Southern Porcupine

    Increasing Activity in the Southern Porcupine * Based on latest scouting reports 40

  41. Slide 41: Closing Remarks

    CLOSING REMARKS Pat Plunkett Chairman 41

  42. Slide 42: Providence Today

    Providence Today IRELAND IS ATTRACTIVE FOR E&P  Proven hydrocarbon systems & attractive fiscal regime  Established ports/infrastructure and connected to the European gas supply network  Ireland is now a leading destination for international E&P companies PROVIDENCE IS CENTRAL TO THE IRISH E&P SPA

  43. Slide 43: Providence Resources: Leadership in the Irish Offshore

    ¢ Providence Resources Leadership in the Irish Offshore PROVIDENCE

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