PROVIDENCE RES. Corporate Update
01 Octubre 2019 - 1:00AM
UK Regulatory
TIDMPVR
FOR IMMEDIATE RELEASE
CORPORATE UPDATE
-- Barryroe Update
-- Non-receipt of funds from APEC
-- No further extension granted and exclusivity removed
-- Corporate Update
-- Implementation of Redundancy Programme
-- Changes to Composition of Providence's Board
-- Licence Update
-- Voluntary Surrender of Frontier Exploration Licence 2/14 - Diablo
Dublin and London -- October 1, 2019 -- Providence Resources P.l.c. (PVR
LN, PRP ID), the Irish based Energy Company ("Providence" or the
"Company"), today provides the following corporate update which includes
a commercial update in relation to Standard Exploration Licence ("SEL")
1/11, which contains the Barryroe oil accumulation (the "Barryroe
Project") and a licence update in relation to Frontier Exploration
Licence ("FEL") 2/14, which contains the Diablo prospect.
SEL 1/11 is operated by EXOLA DAC ("EXOLA" or the "Operator", 40%), a
wholly-owned Providence subsidiary, on behalf of its partners, APEC
Energy Enterprises Limited ("APEC") and Lansdowne Celtic Sea Limited
("Lansdowne", 10%), collectively the "Barryroe Partners". The area lies
in c. 100-metre water depth in the North Celtic Sea Basin and is located
c. 50 km off the south coast of Ireland.
FEL 2/14 is operated by TOTAL E&P Ireland B.V. (35.0%), a wholly owned
subsidiary of TOTAL S.A., on behalf of its partners, Capricorn (30%), a
wholly owned subsidiary of Cairn Energy PLC, Providence Resources P.l.c.
(28%) and Sosina Exploration Limited (7%), collectively referred to as
the "JV Partners". The area lies c. 1,300-metre water depth in the
southern Porcupine Basin and is located c. 150 km off the west coast of
Ireland.
BARRYROE UPDATE
Background
On June 5, 2019, the Company announced that it had agreed certain
amendments to the Farm-Out Agreement (the "Updated FOA") for the
Barryroe Project with APEC Energy Enterprises Limited ("APEC") and,
together with EXOLA and Lansdowne, the "Barryroe Partners", including a
revised backstop date with APEC for receipt of the US$ 9 million loan
advance to June 14, 2019, which was subsequently extended through
various extensions to September 30, 2019.
Non-Receipt of Funds
As at close of business on September 30, 2019, no funds had been
received in the Company's account. Noting this specific contractual
non-performance to the amended terms to the Updated FOA, the Company has
not agreed any further extension with APEC to the Updated FOA. Without
prejudice to any other legal remedies that the Company may have, the
Company has now advised APEC that it will commence with the licence
reversion process of APEC's 50% working interest in SEL 1/11 to EXOLA
and Lansdowne on a 40% and 10% basis, respectively. Additionally, APEC
have been advised that APEC no longer retains exclusivity and that the
Company is now free to open up commercial discussions with third parties
on the Barryroe asset. Further announcements will be made in due
course.
BUSINESS RE-ENGINEERING
Implementation of Redundancy Programme
Following the approval at the Extraordinary General Meeting held
yesterday of the resolution to effect the Placing to raise gross
proceeds of US$ 3.76 million, the Company is now moving forward with the
implementation of the redundancy programme, where technical and support
staff will be made redundant as part of the re-engineering of the
Company's business model.
Changes to Composition of Providence's Board
Mr. Lex Gamble and Mr. Philip O'Quigley, both Non-Executive Directors,
have stepped down from the Board of Directors effective September 30,
2019. The Board of Directors of Providence now comprises Mr. Pat
Plunkett (Chairman), Dr. Angus McCoss (Senior Independent Director) and
Mr. Tony O'Reilly (Chief Executive Officer).
The Company projects that the above restructuring measures, plus other
measures outlined in the Circular issued to shareholders on September
12, 2019, will reduce the Company's annual cost base (excluding CAPEX)
from US$ 5.3 million currently to US$ 1.9 million, representing an
approximate 65% reduction in annualised costs.
LICENCE UPDATE
Voluntary Surrender of FEL 2/14 - Diablo
Following further detailed technical assessment of FEL 2/14, the JV
partners could not recommend any further prospect maturation and
accordingly, TOTAL, on behalf of the JV partners, has now confirmed that
it has written to the Department of Communications, Climate Action and
Environment confirming that the JV partners will voluntarily surrender
the licence with effect from December 31, 2019.
INVESTOR ENQUIRIES
--------------------------------------
Providence Resources P.l.c. Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive Officer
Cenkos Securities plc Tel: +44 131 220 9771
Neil McDonald/Derrick Lee
J&E Davy Tel: +353 1 679 6363
Anthony Farrell
Mirabaud Securities Limited Tel: + 44 20 3167 7221
Peter Krens
MEDIA ENQUIRIES
--------------------------------------
Powerscourt Tel: +44 207 250 1446
Peter Ogden
Murray Consultants Tel: +353 1 498 0300
Pauline McAlester
ANNOUNCEMENT & FORWARD-LOOKING STATEMENTS
This announcement contains certain forward-looking statements. Actual
results may differ materially from those projected or implied in such
forward-looking statements. Such forward-looking information involves
risks and uncertainties that could significantly affect expected
results. No representation is made that any of those statements or
forecasts will come to pass or that any forecast results will be
achieved. You are cautioned not to place any reliance on such statements
or forecasts. Those forward-looking and other statements speak only as
at the date of this announcement. Providence Resources P.l.c undertakes
no obligation to update any forward-looking statements.
ABOUT PROVIDENCE RESOURCES PLC
Providence Resources is an Irish based Oil & Gas Energy Company with a
portfolio of appraisal and exploration assets located offshore Ireland.
Providence's shares are quoted on the AIM in London and the Euronext
Growth Market in Dublin. Further information on Providence can be found
on
https://www.globenewswire.com/Tracker?data=PM7YLylwU8WK-4hv5T6AM3YtCDC9pdQzOykXiPR74CpkMsFShmYlLkqiTXGx-aOsjAhSBeLopF0EdyEy_gChKgAIRW34zAl4b0wRJxRFt6icC86zO42Nuq2oz7tM62iU
www.providenceresources.com
(END) Dow Jones Newswires
October 01, 2019 02:00 ET (06:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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