Providence Resources P.l.c — Shareholder Meeting (July 2020)
49 slides from Providence Resources P.l.c's shareholder meeting presentation, Jul 20, 2020
Slide 1: Annual General Meeting 2019 Results & 2020 YTD Update
Providence Resources P.l.c ANNUAL GENERAL MEETING 2019 RESULTS & 2020 YTD UPDATE July 20, 2020
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: COVID 19
COVID 19 Shareholders were requested not to attend the General meeting in person but instead avail of the proxy voting service. A facility is being provided for shareholders to listen to the proceedings of the AGM and view any presentation slides and the details of this service are included within t
Slide 4: COVID 19 continued
COVID 19 continued; The Company has taken guidance on health and safety in relation to COVID- 19 and has ensured all appropriate safety measures are in place to protect all parties present at the meeting. We appreciate your patience as we work through these necessary measures.
Slide 5: Agenda
Agenda AGM Resolutions 2019 Results Company Update thru’ June 2020 - April Placing - Licences Update - Site Survey Progress - Barryroe Update Strategy - Next Steps 5
Slide 6: AGM Resolutions
AGM Resolutions Ordinary Resolutions 1) To receive and consider the Directors’ Report and Financial Statements for the year ended 31 December 2019. 2) To elect Mr. Alan Linn as a Director. 3) To authorise the Directors to fix the remuneration of the Auditors. 6
Slide 7: AGM Resolutions continued; Special Resolution
AGM Resolutions continued; Special Resolution 4)That the Directors be and they are hereby empowered pursuant to Section 1022 and Section 1023(3) of the Companies Act 2014 to allot equity securities (within the meaning of Section 1023 of the Companies Act 2014) for cash as if the said Section 1022(1)
Slide 8: AGM Resolution continued
AGM Resolution continued; a)the allotment of equity securities in connection with or pursuant to any offer of equity securities open for a period fixed by the Directors, by way of rights issue, open offer or otherwise (an “Offering”) to the holders of ordinary shares and/or any other persons entitle
Slide 9: AGM Resolution continued
AGM Resolution continued; (or, as appropriate, the number of ordinary shares which such other persons are for the purposes of such Offering deemed to hold) on a record date fixed by the Directors (whether before or after the date of this meeting) and subject to such exclusions or other arrangements
Slide 10: AGM Resolution continued
AGM Resolution continued; b)pursuant to the terms of any scheme for Directors and/or employees etc. of the Company and/or its subsidiaries; and
Slide 11: AGM Resolution continued
AGM Resolution continued; c)otherwise than pursuant to sub-paragraphs (a) and (b) above, having in the case of the relevant shares (as defined by the said Section 1023 the allotment of equity securities up to a nominal aggregate amount equal to €83,539 (representing approximately 10% of the issued s
Slide 12: AGM Resolution continued
AGM Resolution continued; save that the Company may before such expiry make an offer or agreement which would or might require equity securities to be allotted or issued after such expiry and the Directors may allot equity securities (as defined by the said Section 1023) in pursuance of such offer o
Slide 13: Agenda
Agenda AGM Resolutions 2019 Results Company Update thru’ June 2020 - Financial Results - April Placing - Licences Update - Site Survey Progress - Barryroe Update Strategy - Next Steps 13
Slide 14: Company Update
Company Update New CEO appointed January 9th, 2020 Board structure rationalised and aligned with development and operational focus Cost base reduced and further savings possible Barryroe Development is our top priority Barryroe Jurassic exploration and near field discoveries Significant re-rating po
Slide 15: Financial Highlights
Financial Highlights Operating loss for the period of €25.9 million versus €4.4 million in 2018 Nett impairment - €21.1 million (West of Ireland Licences Key driver for the loss) Loss for the year of €26.8 million versus €4.8 million in 2018 Loss per share of 4.39 cents versus 0.80 cents in 2018
Slide 16: Financial Highlights continued
Financial Highlights continued; At 31 December 2019 total cash and cash equivalents were €0.710 million versus €7.617 million (at 31 December 2018) The Company had no debt at 31 December 2019 The total issued and voting share capital comprises 841,514,060 ordinary shares of €0.001 each as at 2 June
Slide 17: September 2019 and May 2020 Placings
September 2019 and May 2020 Placings Providence Resources raised c. €3.4m (c. $3.76 million) (before expenses) from shareholders in September 2019 to support the working capital requirements until February 2020 and fund a full re-structure of the business. The restructure was completed Following the
Slide 18: September 2019 and May 2020 Placings continued
September 2019 and May 2020 Placings continued In May 2020, Providence raised c. €3m (c.$3.3million) (before costs) through a placing and is funded until April 2021, providing time to progress an economically attractive farm-out of the Barryroe Asset. The April 2020 fundraising took place during wha
Slide 19: West of Ireland Exploration Relinquished
West of Ireland Exploration Relinquished Deepwater Shallow Offshore Offshore Dunquin South Barryroe, Helvick, and Dunmore, Hook Head, Avalon Dragon
Slide 20: Licence Status
Licence Status Barryroe, North Celtic Sea (SEL1/11) Lease Undertaking application submitted 2 Drilling Site Surveys complete 1 Planning Application in progress Farmout process continuing Dragon, St. George’s Channel (SEL 1/07) Under discussion with the regulatory authorities Hook Head, North Celtic
Slide 21: Licence Status continued
Licence Status continued; Dunquin South, Southern Porcupine (FEL 3/04) Repsol Exploracion Irland SA advised the JV Partners of its withdrawal from the licence. ENI Ireland B.V. advised the JV Partners of its withdrawal from the licence. May 2020 Providence advised JV partners of its withdrawal from
Slide 22: Licence Status continued
Licence Status continued; Diablo, Southern Porcupine (FEL 2/14) The JV partners voluntarily surrendered the licence effective 31 December 2019 Newgrange, Goban Spur (FEL 6/14) The JV Partners relinquished the licence in September 2019 Spanish Point, Northern Porcupine (FEL 2/04) Work programme compl
Slide 23: Barryroe Site Surveys - Well Locations A, B & K
Barryroe Site Surveys - Well Locations A, B & K Site Surveys for Well locations A & B complete. Seabed ready for the commencement of rig operations. Site Survey for the K Well location nearing the end of the permitting process.
Slide 24: Barryroe Development and Sustainable Irish Production
Barryroe Development and Sustainable Irish Production
Slide 25: Irish Resource Base with Exploration Potential
Irish Resource Base with Exploration Potential North Celtic Sea Focus Proven Shallow Water Offshore Basin Appraisal, Development and Exploration Barryroe, Helvick, Dunmore, Hook Head, Dragon
Slide 26: Focus and Priority
Focus and Priority • Appraise and Develop the Barryroe Gas and Oil resources with a Appraise partner capable of funding the work programme • Establish a phased field development programme designed to Establish maximise early cashflow and minimise overall development risk • Explore the potential for
Slide 27: Triple Bottom Line (TBL)
Triple Bottom Line (TBL) PARTNER PLANET PRODUCE The Triple Bottom Line (TBL) is a framework which commits businesses to focus on social and environmental issues alongside profits. To manage business risk and ensure consistent outcomes we will: • Deploy the Triple Bottom Line (TBL) approach when asse
Slide 28: Barryroe is one of the largest undeveloped fields offshore UK / Ireland
Barryroe is one of the largest undeveloped fields offshore UK / Ireland
Slide 29: Barryroe is one of the largest undeveloped fields offshore UK / Ireland
Barryroe is one of the largest undeveloped fields offshore UK / Ireland Conventional Shallow Water Offshore Development Oil and Gas 2C Resources of 346 MMBOE CPR (NSAI) Tested at Rates of c. 4000BOEPD (Well 48/24-10z) Phased Development Optimises Risk and Funding Profile Significant Upside Appraisal
Slide 30: Large Proven Resource Base with Significant Upside and Exploration Potential
Large Proven Resource Base with Significant Upside and Exploration Potential
Slide 31: Large Proven Resource with Appraisal and Exploration Potential
Large Proven Resource with Appraisal and Exploration Potential 100% GROSS STOIIP (MMBO) Low Mid High Middle Wealden1 31 287 706 Lower Wealden 416 663 Basal Wealden2 338 761 1135 Purbeck 362 502 Total 369 1826 3006 100% GROSS RECOVERABLE (MMBO) 1C 2C 3C Middle Wealden1 4 45 113 Lower Wealden Basal We
Slide 32: Appraisal/Development Programme
Appraisal/ Development Programme Complete two well appraisal programme, an extended well test and assess reservoir continuity Progress Eastern Core Area Development and Production Phased Development to Maximise Full Field Production Potential 32
Slide 33: UK Oil and Gas Authority Investment Performance Data for 2019
UK Oil and Gas Authority Investment Performance Data for 2019 Barryroe competes favorably with the best projects in the UK Barryroe valuation NPV10 $8.6/BOE after tax, based upon initial oil development of the Eastern Core area, recovering 102MMBOE at $55/Bbl oil and $6/MSCF gas. (IRR 51%) IRR % and
Slide 34: Share Price versus Barryroe Valuation
Share Price versus Barryroe Valuation NSAI (Netherland and Sewell Associates International) Competent Persons Report assessed 2C Recoverable Resources within Barryroe Base and Middle Wealden Reservoirs is 346Million BOE. Based upon a share price of 3.5 pence per share and 845,514,060 shares issued.
Slide 35: Sustainable Development
Sustainable Development Climate change is a global issue and Ireland has committed to carbon neutral by 2050 Barryroe development, in partnership with industry and government, can contribute to energy transition and a carbon neutral economy in Ireland Providence will fully assess the benefits of the
Slide 36: A Broader Investment Proposition
A Broader Investment Proposition 36
Slide 37: Barryroe Integrated Sustainable Development and Production
Barryroe Integrated Sustainable Development and Production 37
Slide 38: Company Structure
Company Structure EXOLA DAC - Focus upon Barryroe Development and Licences within the Celtic Sea Basin PROVIDENCE RENEWABLES DAC - Focus upon value potential within the renewable energy sector, including Carbon Capture and Storage and Blue Hydrogen PROVIDENCE RESOURCES P.l.c. PROVIDENCE EXOLA DAC RE
Slide 39: Barryroe Project Development: A Value Based Approach
Barryroe Project Development A Value Based Approach
Slide 40: A Value Based Partnership
A Value Based Partnership Customers want to maximise the economic benefits from projects and this is best achieved with partners, through alignment and mutual benefit. 40
Slide 41: A Value Based Partnership continued
A Value Based Partnership continued; The consortium approach has the potential to deliver value for all partners with careful management: • Mechanism in place to ensure optimal services deployed to maximise overall project value. • Services and goods provided with an open book and an agreed profit m
Slide 42: Agenda
Agenda AGM Resolutions 2019 Results Company Update thru’ June 2020 - April Placing - Licences Update - Site Survey Progress - Barryroe Update Strategy - Next Steps 42
Slide 43: Strategy
Strategy Providence’s core strategy is to economically appraise and develop the Barryroe Oil and Gas Field. A phased Barryroe development is expected to maximise field development returns by accelerating cash flow and progressively converting established resources to reserves.
Slide 44: Strategy continued
Strategy continued; Fully developed, the Barryroe field can become a processing hub, similar to a number of large field developments in the UK North Sea. Providence proposes economically linking the Barryroe facilities with near field discovered resources and exploration opportunities in the North C
Slide 45: Deliverables
Deliverables Create value for stakeholders by appraising Barryroe and transforming 2C resources into 2P reserves. Progress a phased Barryroe development designed to generate early cashflow and manage development capex and risk. Maintain a balanced portfolio of commercially attractive licences with I
Slide 46: Deliverables continued
Deliverables continued; Actively evaluate M&A and asset swap opportunities to build stakeholder value. Implement a Triple Bottom Line (“TBL”) approach to value creation. Support the government drive to carbon neutral by 2050 by assessing the benefits of linking Carbon Capture and Sequestration (CCS)
Slide 47: North Celtic Sea Basin – Under Explored
North Celtic Sea Basin – Under Explored
Slide 48: North Celtic Sea Basin – Under Explored
North Celtic Sea Basin – Under Explored Established Hydrocarbon Basin which has produced gas commercially for more than 40 years (~2TCF) No recent activity – Majority of drilling undertaken in the 1970’s and 80’s on limited 2D seismic data offering poor sub surface visualisation Limited use of 3D or
Slide 49: Thank You and Questions?
Providence Resources AGM THANK YOU and QUESTIONS?
Providence Resources P.l.c — Shareholder Meeting (July 2020) on 6ix