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Providence Resources 2015 results

Published by
Oilfield Technology,

Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil and Gas Exploration Company, has announced annual results for the year ended December 31, 2015.

Tony O’Reilly, Chief Executive Officer commented:

“2015 was a year of unprecedented dislocation in the global oil and gas industry and provided a very tough backdrop for us to operate in. Market volatility has continued into 2016 but I am happy to report that, despite market turmoil, we have made significant progress in developing and realising value from our unique portfolio of assets offshore Ireland. Regardless of short term market flux, the Irish offshore remains a very attractive location for the global industry majors as evidenced by the record interest expressed in the recent Atlantic Margin Licensing Round.

“Thanks to the very significant support of our existing shareholders and new investors, we will have the financial resources and capability to advance our very extensive portfolio of assets. The proceeds from the recently announced equity capital raise, which is subject to shareholder approval, will not only allow Providence to repay the Melody debt facility and its court mandated obligations to Transocean, but it will also restore our flexibility in commercial negotiations on farm outs in relation to Barryroe, Spanish Point and the Porcupine Basin. Importantly, it will also allow us to fund our share of drilling costs associated with the high impact Druid exploration prospect in 2017, which is a key asset in our Porcupine Basin exploration portfolio.

“We look forward to updating shareholders on further developments as we continue to consolidate our leading position offshore Ireland.”

2015 Operational highlights

  • ?Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11)
  • Farm out discussions continued.
  • 2 year extension to the 1st phase of SEL 1/11 to July 2017 and an extension to 2nd phase to July 2019.
  • Area of SEL 1/11 increased by c.118 km2 to accommodate mapped potential extensions of Barryroe, formerly located within LO 12/4, which has now expired.
  • Assessed separate fast-track development options of the highly productive C-Sand gas bearing reservoir
  • ? Offshore Petroleum Lease 1 (OPL 1) South Option, North Celtic Sea Basin
  • Option with PSE Kinsale Energy Limited for a right to earn a 60% working interest in southern portion of OPL 1 (subject to Ministerial consent) exercisable for a 3 year period.
  • Option is earned through the 100% financing and drilling of an exploration well.
  • Based on mapping, this area has the potential to host significant incremental resources.
  • ? Spanish Point Gas Condensate Project, Northern Porcupine Basin (FEL 2/04 and 4/08).
  • Acquired Chrysaor E&P Ireland Limited which increased the Company’s working interest in 
  • Spanish Point licences (FEL 2/04 and FEL 4/08) from 32% to 58% and FEL 1/14 from 32% to 43%.
  • HIIP of c. 730 MMBOE and combined contingent plus prospective recoverable resources of up to 337 million boe
  • Farm out campaign launched in October 2015.
  • ? Dunquin Oil Prospect, Southern Porcupine Basin (FEL 3/04)
  • Agreed to acquire Atlantic Petroleum (Ireland) Limited’s 4% working interest in FEL 3/04 increasing the Company’s working interest to 20% (subject to Ministerial approval)
  • Druid/Drombeg Oil Prospects, Southern Porcupine Basin (FEL2/14).
  • Major post 3D seismic analysis carried out; 3D seismic morphologies consistent with large stacked Lower Cretaceous and Paleocene deepwater fan systems at Drombeg and Druid.
  • Apparent depth consistent Class II AVO responses noted on both fan systems.
  • Large deeply buried pre-Cretaceous Diablo Ridge presence confirmed.

  • 2015 Financial highlights

  • ? Operating loss for the period of €13.080 million versus €6.463 million in 2014.
  • ? Loss of €24.137 million versus €11.489 million in 2014.
  • ? Loss per share of 19.57 cents versus 17.77 cents in 2014.

  • Adapted from a press release by Louise Mulhall

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