PVR Providence Resources Plc

 
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)

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