Providence Resources P.l.c

Providence Resources P.l.c — FY2016 Earnings Presentation

32 slides from Providence Resources P.l.c's earnings presentation, Apr 12, 2017

  1. Slide 1: FY 2016 Results

    FY 2016 Results April 12th, 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 Focussed on Offshore Ireland 8 FY 2016 Results 11 Post FY 2016 Events 16 Leadership Role in the Porcupine Basin 18 Druid & Drombeg Drilling – 2017 24 The Providence Opportunity 29 3

  4. Slide 4: Providence

    & PROVIDENCE Providence

  5. Slide 5: Providence

    Providence IRELAND IS ATTRACTIVE FOR E&P  Proven hydrocarbon systems and attractive fiscal regime  2015 Atlantic Margin Licensing Round and Providence/ Schlumberger Exploration Collaboration Project - major catalysts  Established ports/infrastructure and connected to the European gas supply netwo

  6. Slide 6: Providence – cont'd

    Providence – cont’d STRONG FINANCIAL POSITION  2016 capital raise at £0.12 /share raised c. $70 million  Provided the financial resources to execute the planned programme  Providence is now debt free  Year end cash of €31.4 million  Industry cost profile at 10 year lows SHAREHOLDER ENDORSED STR

  7. Slide 7: Providence – cont'd

    Providence – cont’d FORWARD PROGRAMME  Drill dual objective exploration well DRUID 3.2 BBO STOIIP (Pmean) DROMBEG 1.9 BBO STOIIP (Pmean) 5.1 BBO STOIIP (Pmean)  Target farm outs BARRYROE 346 MMBOE (2C REC) DRUID & DROMBEG 5.1 BBO STOIIP (Pmean) SPANISH POINT 337 MMBOE (2C REC) DUNQUIN SOUTH 1.4 BB

  8. Slide 8: Focussed on Offshore Ireland

    Focussed on Offshore Ireland 8

  9. Slide 9: Providence - Strategy & Development

    Providence - Strategy & Development GEOGRAPHIC FOCUS GEOGRAPHIC FOCUS  Ireland – specifically the BARRYROE appraisal asset in the Celtic Sea and the DRUID & DROMBEG, DUNQUIN SOUTH, AVALON, and NEWGRANGE exploration assets in the southern Porcupine Basin ASSET FOCUS ASSET FOCUS  Via farm-outs/bala

  10. Slide 10: Providence - Focused on Offshore Ireland

    Providence - Focused on Offshore Ireland KEY ASSETS - LOCATION KEY ASSETS – RESOURCE ESTIMATES DRUID OIL PROSPECT (PVR - 56%*) Prospect Size (Pmean): c. 3.180 BBO STOIIP Net to PVR: c. 1.780 BBO STOIIP DROMBEG OIL PROSPECT (PVR - 56%*) Prospect Size (Pmean): c. 1.915 BBO STOIIP Net to PVR: c. 1.072

  11. Slide 11: FY 2016 Results

    FY 2016 Results & PROVIDENCE 11

  12. Slide 12: 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

  13. Slide 13: 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

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

    FY 2016 Results – cont’d  Avalon Oil Prospect, Porcupine Basin (LO 16/27) ₋ Award of new Licensing Option in 2016 from the 2015 Atlantic Margin Licensing Round ₋ Large AVO stratigraphic Paleocene oil play identified ₋ Identified prospect is analogous to and spatially larger than the Druid prospect

  15. Slide 15: 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 €

  16. Slide 16: Post FY 2016 Events

    Post FY 2016 Events & PROVIDENCE 16

  17. Slide 17: Post FY 2016 Events

    Post FY 2016 Events  Druid & Drombeg Oil Prospects, Southern Porcupine Basin (FEL 2/14) ₋ Farm Out with Cairn, subject to Ministerial approval ₋ 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) ₋ Payme

  18. Slide 18: Leadership Role in the Porcupine Basin

    Leadership Role in the Porcupine Basin 18

  19. Slide 19: 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 farms into SPANISH POINT  Licence Opti

  20. Slide 20: North Atlantic Source Rock Superhighway

    North Atlantic Source Rock Superhighway 20

  21. Slide 21: Porcupine Basin Licence Activity – 2004 vs 2017

    Porcupine Basin Licence Activity – 2004 vs 2017 21

  22. Slide 22: Schlumberger Exploration Collaboration Project

    Schlumberger Exploration Collaboration Project 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 worke

  23. Slide 23: 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

  24. Slide 24: Druid & Drombeg Drilling - 2017

    Druid & Drombeg Drilling - 2017 24

  25. Slide 25: 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

  26. Slide 26: 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 26

  27. Slide 27: Drilling - Druid & Drombeg – Global Analogues

    Drilling - Druid & Drombeg – Global Analogues 27

  28. Slide 28: Increasing Activity in the Southern Porcupine

    Increasing Activity in the Southern Porcupine * Based on latest scouting reports 28

  29. Slide 29: The Providence Opportunity

    The Providence Opportunity 29

  30. Slide 30: Potential Activity in Providence's Core Assets

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

  31. Slide 31: The Providence Opportunity

    The Providence Opportunity IRELAND IS ATTRACTIVE FOR E&P  Proven hydrocarbon systems and attractive fiscal regime  2015 Atlantic Margin Licensing Round and Providence/ Schlumberger Exploration Collaboration Project - major catalysts  Established ports/infrastructure and connected to the European

  32. Slide 32: Providence Resources

    ¢ Providence Resources Leadership in the Irish Offshore PROVIDENCE

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