Providence Resources P.l.c — H1 2018 Earnings Presentation
27 slides from Providence Resources P.l.c's earnings presentation, September 2018
Slide 1: Providence Resources P.l.c H1 2018 Results
Photo courtesy of Stena Drilling Ltd. Providence Resources P.l.c H1 2018 Results PVR LN / PRP ID September 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 Providence – Portfolio, Partners & People 4 H1 2018 Results & Post H1 2018 Events 6 Barryroe - Farm-out to APEC 9 Current Projects & Prospects 13 Providence Opportunity 25 3
Slide 4: Providence – Portfolio, Partners & People
Providence – Portfolio, Partners & People PORTFOLIO PARTNERS PEOPLE • Significant equity in • Track record of successfully • Dedicated in-house material prospects & partnering with majors and technical & operational projects super majors teams – a unique skill set offshore Ireland • Most diversified
Slide 5: Providence - World Class Assets & Partners
Providence - 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. 5
Slide 6: H1 2018 Results
H1 2018 Results KEY LICENCE ACTIVITY ▪ Barryroe, North Celtic Sea Basin (SEL 1/11) ₋ Signed a Farm-Out Agreement with APEC Energy Enterprise Limited in March 2018 ₋ Farm-out provides for drilling of a number of wells and was subject to various closing conditions ₋ (See POST H1 2018 EVENTS below) ▪ D
Slide 7: H1 2018 Results
H1 2018 Results OTHER LICENCE ACTIVITY ▪ Spanish Point & Spanish Point North, Northern Porcupine Basin (FEL (FEL 2/04 & 4/08) ₋ Under discussion with the Irish regulatory authorities as to future status ▪ Dragon, St George’s Channel Basin (SEL 2/07) ₋ Under discussion with the Irish regulatory autho
Slide 8: Post H1 2018 Events
Post H1 2018 Events KEY LICENCE ACTIVITY ▪ Newgrange, Goban Spur Basin (FEL 6/14) ₋ Completed site survey over Newgrange ₋ Large number of seabed pockmarks imaged on site survey data ₋ Discussions with potential third party farminees continue and and possible synergistic rig opportunities continue ▪
Slide 9: Barryroe - Farm-out to APEC: Wells firm & Drilling
Barryroe - Farm-out to APEC 4 Wells firm & Drilling Signed site survey, well Updated FOA 1 Side-track planning and procurement all + Testing* underway Potential Optional $19.5m 2 wells $10m future cash advances for cash injection* operational costs + Testing * subject to exercise of warrants by APEC
Slide 10: Barryroe - Farm-out to APEC
Barryroe - Farm-out to APEC OPERATOR: EXOLA (40.0%) (Providence subsidiary) PROVIDENCE EQUITY: 40.0% PARTNERS: APEC (50.0%) Lansdowne (10.0%) MAIN PROSPECT: Barryroe RECENT ACTIVITY: Farm-out to APEC (2018) CURRENT ACTIVITY: Planning/Consenting for 2019 Drilling FUTURE ACTIVITY: - Drilling of 4 well
Slide 11: Barryroe - Farm-out to APEC: Main Commercial Terms
Barryroe - Farm-out to APEC MAIN COMMERCIAL TERMS • APEC to pay $9 million to EXOLA to cover project related costs & site survey acquisition costs by the end of September 2018; • Further $10.5 million payment to EXOLA to cover future operational costs, such payment to be made prior to the commenceme
Slide 12: Barryroe - Farm-out to APEC: Main Operational Terms
Barryroe - Farm-out to APEC MAIN OPERATIONAL TERMS • Base drilling programme entails the drilling of: – 4 vertical wells to allow for the evaluation of the main Basal Wealden reservoir; and – A 200-metre horizontal reservoir section in the Basal Wealden; – Drill-stem testing is planned for three of
Slide 13: 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 • Discussions • Progress • Farm-out • Farm-out • Farm-out • Eni assume •
Slide 14: 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 50% established license option assumed op. 25% of acquired over Collaborative of Barryroe to •ESM /1997 with of Dunquin Dunquin
Slide 15: Leadership Offshore Ireland – 2004 vs 2018
Leadership Offshore Ireland – 2004 vs 2018 15
Slide 16: Update – Diablo
Update – Diablo OPERATOR: TOTAL (35.0%) PROVIDENCE EQUITY: 28.0% PARTNERS: Cairn Energy (30.0%) Sosina (7.0%) MAIN PROSPECT: Diablo RECENT ACTIVITY: - Farm-out to TOTAL (2017) - Farm-out to Cairn (2017) - Drilled 53/6-1 well (2017) CURRENT ACTIVITY: - Post well analysis & evaluation of other prospec
Slide 17: Update – Diablo vs Iolar 2D Seismic Schematic
Update – Diablo vs Iolar 2D Seismic Schematic Not tos cale 53/6-1 DRUID DROMBEG c. 2 km Indicative only: Not to scale 17
Slide 18: Update – Dunquin South
Update – Dunquin South OPERATOR: Eni (36.913%) PROVIDENCE EQUITY: 26.846% PARTNERS: Repsol (33.557%) Sosina (2.684%) MAIN PROSPECT: Dunquin South RECENT ACTIVITY: - 3D seismic (2017) CURRENT ACTIVITY: - Evaluating 3D FUTURE ACTIVITY: - Assessment of future exploration well potential 18
Slide 19: Update – Dunquin North v South – New 3D Seismic Data
Update – Dunquin North v South – New 3D Seismic Data DUNQUIN NORTH DUNQUIN SOUTH (DRILLED) (UNDRILLED) NW SE Potential Breach 250m Residual Oil Column FAULT CONTROL Faulting Courtesy of CGG The new 3D seismic data substantially differentiate between Dunquin North & Dunquin South in terms of faulting
Slide 20: Update – Newgrange
Update – Newgrange OPERATOR: Providence PROVIDENCE EQUITY: 80.0% PARTNER: Sosina (20.0%) MAIN PROSPECT: Newgrange RECENT ACTIVITY: - 2D seismic (2014) - Joint Exploration Assessment with Schlumberger (2016) - Site Survey (2018) CURRENT ACTIVITY: - Post Site survey technical evaluation - Farm-out pro
Slide 21: Update – Newgrange – 2D Seismic Schematic
Update – Newgrange – 2D Seismic Schematic 62/16-A 62/7-1 NE SW (Drilled) (Planned) • Exploration well site survey carried out in summer 2018 • Farm-out process ongoing 21
Slide 22: Update – Avalon
Update – Avalon OPERATOR: TOTAL (50.0%) PROVIDENCE EQUITY: 40.0% PARTNERS: Sosina (10.0%) MAIN PROSPECT: Avalon RECENT ACTIVITY: - Licenced in Atlantic Margin Licensing Round (2016) CURRENT ACTIVITY: - Conversion to FEL FUTURE ACTIVITY: - Assessment of future exploration well potential 22
Slide 23: Update - Avalon – 3D GeoPerspective
Update - Avalon – 3D GeoPerspective Avalon Dunquin North Dunquin South • TOTAL assumed Operatorship • Application made to convert from Licensing Option to Frontier Exploration Licence 23
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 S
Slide 25: Providence Opportunity
Providence Opportunity PVR - COMPETITIVE ADVANTAGE • World class portfolio of assets • >20 years drilling experience • 1st mover in the “right postcode” alongside significant players • Holds most diverse portfolio of authorisations offshore Ireland with a focus on high impact exploration prospects •
Slide 26: 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 ARCON, C&L Britsurvey, Lynx Chief Executive
Slide 27: Providence Resources - Leadership in the Irish Offshore
¢ Providence Resources Leadership in the Irish Offshore PROVIDENCE
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