http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Thu, 24 May 2018 16:40:43 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Providence Resources offering investors a 'unique opportunity ahead of next wave of activity' ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/9309/providence-resources-offering-investors-a-unique-opportunity-ahead-of-next-wave-of-activity--9309.html Wed, 16 May 2018 16:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/9309/providence-resources-offering-investors-a-unique-opportunity-ahead-of-next-wave-of-activity--9309.html <![CDATA[News - Providence Resources upbeat on Barryroe and West Coast exploration after busy 2018 ]]> http://www.proactiveinvestors.co.uk/companies/news/196703/providence-resources-upbeat-on-barryroe-and-west-coast-exploration-after-busy-2018-196703.html Providence Resources PLC (LON:PVR) chief executive Tony O’Reilly, in the Irish oil explorer’s financial results statement for 2018, told investors that it was an “extremely busy” year, albeit, the most significant recent event came after the reporting period.

“During the year, we agreed 3 major exploration farm-out transactions which provided significant momentum to our portfolio development activities and also delivered incremental capital to enhance our financial resources,” O’Reilly said.

READ: Providence Resources set for catalysts thanks to Barryroe breakthrough

This April, meanwhile, saw Providence unveil a long awaited farm-out transaction which will see the Barryroe oil field advance towards development, with a proposed three-well appraisal drill programme and testing.

In essence, the deal sets a roadmap to production from the field in Ireland’s Celtic Sea.

“Importantly, the structure of the farm-out transaction means that Providence has no upfront risk or capital exposure for the initial appraisal drilling, whilst also providing a roadmap to take this project, subject to the results of the drilling, to project sanction and on to production,” O’Reilly said.

In 2017, the operational focus for on exploration off the West Coast - though the Druid & Drombeg dual exploration well delivered disappointing results but it was not a total loss.

“Unfortunately, as we announced last summer, both targets were water wet which was very disappointing - but as a by-product, valuable regional geology, reservoir development and pressure regime data were obtained,” the Providence chief executive explained.

“As only the second wildcat exploration well ever drilled in the southern Porcupine Basin, the well data will be useful for any future planned drilling of the deeper Diablo structure contained within FEL 2/14 or other Providence assets elsewhere within the basin. 

“Importantly, from a financing perspective, the farm-out deals structured with TOTAL and Cairn substantially mitigated our cost exposure to this drilling programme.”

O’Reilly added: “We continue to be by far the most active player offshore Ireland in terms of drilling activity, commercial deals and collaborations with world-class partners.

“Looking ahead, we have the portfolio, partners, people and financial resources in place to advance our portfolio through exploration & appraisal drilling for the benefit of all our shareholders."

Financial results

In terms of financial results, the group reported a €20.4mln loss for the year, including a €14.6mln impairment to exploration and evaluation assets.

As at December 31, Providence had €19.6mln of cash and equivalents and its exploration assets carried a book value of €74.8mln.

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Thu, 10 May 2018 07:23:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/196703/providence-resources-upbeat-on-barryroe-and-west-coast-exploration-after-busy-2018-196703.html
<![CDATA[News - Providence Resources set for summer seismic shoot at Newgrange ]]> http://www.proactiveinvestors.co.uk/companies/news/196528/providence-resources-set-for-summer-seismic-shoot-at-newgrange-196528.html Providence Resources PLC (LON:PVR) has updated investors on it exploration plans for the Newgrange project, off Ireland’s West Coast.

The Newgrange exploration partners have now hired Gardline to carryout a new 2D seismic data gathering programme, to examine the crest of the prospect and to provide additional data to support permitting for a future exploration well.

It is expected that Gardline’s M/V Kommandor vessel will conduct the data acquisition programme during the third quarter of this year, subject to regulatory consent.

WATCH: Providence keen to move ‘aggressively’ on Barryroe

In the meantime, Providence highlighted that it is continuing commercial talks with potential farm-in partners for the exploration project.

"We are pleased to announce the award of the 2018 Newgrange data acquisition programme to Gardline and look forward to commencing operations during the summer months,” said Dr John O’Sullivan, Providence technical director.

“The Newgrange prospect provides significant stacked exploration potential at both Jurassic and Cretaceous levels with proven source, reservoir and seal demonstrated in the previous off-structure 62/7-1 exploration well.”

O’Sullivan added: “The relatively shallow nature of the reservoir intervals also means that this data acquisition programme may provide even further insight to de-risk the potential presence of hydrocarbons within the subsurface prior to drilling."

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Tue, 08 May 2018 08:03:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/196528/providence-resources-set-for-summer-seismic-shoot-at-newgrange-196528.html
<![CDATA[News - Providence Resources technical director to update on Dunquin South prospect ]]> http://www.proactiveinvestors.co.uk/companies/news/196212/providence-resources-technical-director-to-update-on-dunquin-south-prospect-196212.html Providence Resources PLC (LON:PVR) has told investors that technical director Dr John O’Sullivan will present a paper regarding Frontier Exploration Licence (FEL) 3/04, in the Atlantic margin, off Ireland’s west coast.

FEL 3/04 includes the undrilled Lower Cretaceous "Dunquin South" carbonate exploration prospect, and is adjacent to the area which hosted the previously drilled Dunquin North well.

Providence has a 26.84% stake in FEL 3/04 which is operated by ENI and also includes partners Repsol and Sosina. The presentation is due to be uploaded to the company’s website.

READ: Providence Resources keen to move ‘aggressively’ on Barryroe

It is one of a number of exploration areas held by Providence in Ireland’s Atlantic waters, a region that’s increasingly seen as a ‘hot spot’ for new potentially high impact exploration.

Last year, Providence took part in a drill programme albeit it didn’t unearth a discovery and it is anticipated that new wells are being planned by explorers in the region, drilling is likely to start in 2019.

In the Celtic Sea, meanwhile, the company recently secured a partnership agreement with a Chinese consortium which will see the Barryroe oil field advance to development and ultimately production.

At Barryroe, the next phase of appraisal drilling is expected to kick off in 2019.

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Wed, 02 May 2018 07:24:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/196212/providence-resources-technical-director-to-update-on-dunquin-south-prospect-196212.html
<![CDATA[Media files - Providence Resources keen to move ‘aggressively’ on Barryroe ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/9130/providence-resources-keen-to-move-aggressively-on-barryroe-9130.html Mon, 23 Apr 2018 15:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/9130/providence-resources-keen-to-move-aggressively-on-barryroe-9130.html <![CDATA[News - Providence Resources and Total to advance Avalon exploration offshore Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/195241/providence-resources-and-total-to-advance-avalon-exploration-offshore-ireland-195241.html Providence Resources PLC (LON:PVR) has told investors that its Total-led joint venture will continue to advance the Avalon exploration project, in the Atlantic waters off Ireland’s west coast.

The explorer, in a statement, said that the partners have elected to apply to the Irish authorities to convert Licence Option 16/27, which hosts Avalon, into a Frontier Exploration Licence (FEL).

READ: Providence Resources set for value catalysts thanks to Barryroe breakthrough

"We are very pleased that the JV Partners, under the Operatorship of Total, have elected to convert the Avalon Licensing Option into a Frontier Exploration Licence,” said Dr John O’Sullivan, Providence technical director.

“We look forward to progressing our work on the Avalon prospect and will provide further updates as and when appropriate."

Providence owns a 40% stake in Avalon, while project operator Total has 50% and Sosina Exploration retains 10%.

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Wed, 18 Apr 2018 09:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195241/providence-resources-and-total-to-advance-avalon-exploration-offshore-ireland-195241.html
<![CDATA[RNS press release - Licence Update - Licensing Option 16/27 Avalon ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180418081308_13608918/ Wed, 18 Apr 2018 08:13:08 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180418081308_13608918/ <![CDATA[News - Providence Resources set for value catalysts as Barryroe breakthrough has fired starting pistol on a busy period ]]> http://www.proactiveinvestors.co.uk/companies/news/194261/providence-resources-set-for-value-catalysts-as-barryroe-breakthrough-has-fired-starting-pistol-on-a-busy-period-194261.html Providence Resources PLC (LON:PVR) last week achieved a long awaited and hotly anticipated breakthrough for the Barryroe project, off Ireland’s south coast.

A farm-out deal with a consortium of Chines companies puts Barryroe on-track to become Ireland’s first producing oil field - at its peak the field could eventually produce a hundred thousand barrels of crude per day.

The deal is undoubtedly positive, though it essentially only represents the firing of a starting pistol that will now set in motion a busy period, both operationally and bureaucratically.

Providence shares are up around 15% in the week since the deal was announced, and plainly there’s an awful lot of scope for the price to rise - for example, broker Mirabaud’s recently upgraded target price of 33p suggests some 200% upside.

The deal will see the Chinese consortium fund a new programme of drilling and provide non-recourse financing - put simply, the upshot is that Providence now has both the technical and the economic wherewithal to bring Barryroe to production.

In all, the new partners be supporting a programme of 3 firm wells, 3 side-tracks and well testing on the Barryroe oil field.

To begin with, Providence’s subsidiary EXOLA will remain the operator, meanwhile, the Chinese partners will provide significant technical assistance and resources for the operations - including the provision of a drilling unit and related operational services.

Later, following the completion of the farm-out work programme, APEC will take the reins as operator.

The larger campaign of drilling overrides Providence’s prior single well programme, which would’ve taken place later this year and would have required financing from Providence

Although precise timelines have yet to be finalised, Providence expects drilling will get underway during 2019. Similarly, the final budgets for the drill programme have yet to be finalised though Providence notes that its prior estimates put the cost of a single well and side track was around US$25mln. In reality, this  factor is now less significant for Providence shareholders  as the consortium are funding all through their participation and or non-recourse financing.

A closer look at the partnership

The Chinese consortium is led by APEC Energy Enterprise Limited, significantly it has a strategic partnership with China Oilfield Services Co Ltd (COSL) which is in turn majority owned by Chinese state firm CNOOC Group and financial support from China Jianyin Investment Limited (JIC), which is a Chinese state-owned (100% subsidiary of China Investment Corporation) integrated investment group established.

CNOOC also owns Nexen, which is actively advancing potential high impact exploration acreage off Ireland’s west coast - indeed, CNOOC has neighbouring acreage to Providence’s own Atlantic margin projects.

It is anticipated that, via COSL, the Chinese partners will provide equipment and services for the anticipated operations at Barryroe.

The APEC consortium will have a 50% stake in Barryroe, with Providence retaining 40% and Lansdowne Oil & Gas Plc (LON:LOGP) will have 10%.

APEC will pay its pro rata share of all the costs associated with the drilling programme, and it commits to the provision of a non-recourse loan to Providence and Lansdowne to finance their Barryroe costs.

The loans will be repaid from future production, and to expedite repayment the Chinese consortium will be due a higher share (80%) of Barryroe cashflow until the debt is repaid. The loan will carry interest at LIBOR plus 5%.

Details are yet to be confirmed, but should  one assume that the total programme cost would be  $100mln, the loan element would be $50mln, which with oil at $70/barrel would equate to  less than 1 miln barrels  (out of a 300mln  field that would still be 50% owned by  Providence and Landsowne.

Subsequently, the partner’s respective share of cashflow will revert to 50%, 40% and 10% - proportionate to their ownership stakes.

APEC additionally will receive share warrants which, upon the completion of the planned Barryroe drilling, will allow them to acquire 59.2mln Providence shares at 12p each. It would raise around £7.1mln or US$10mln of new capital for the company, and the warrants would have to be exercised within six months of the completion of drilling.

What comes next?

With the Farm Out Agreement now signed, some further ancillary documentation will need to be finalised before the proposed transaction completes. Similarly, the deal would also need clearance from the Irish authorities (specifically the Minister of State at the Department of Communications, Climate Action and Environment, which is standard) and elements related to the financing would need approval from China, as it would involve state funds.

In all, it is anticipated that the transaction will close later in the third quarter of 2018. Thereafter, the Barryroe operations will naturally be a focus and it will provide many potential share price catalysts for shareholders.

Investors will, in the meantime, be keen to see further commentary around the potential project timelines, including expectations for ‘first oil’ and the potential phased development of the field (which would be the natural progression should the appraisal drilling and testing prove successful).

Providence also continues to advance plans for its offshore West Coast exploration projects, and, perhaps significantly, it was noted that the explorer will evaluate further co-venturing possibilities with its new Chinese partners.

Investors will, upon completion of the farm-out, look for clarification of just how much existing capital will retained for its other exploration plans (before agreeing the deal the company had sufficient funds for its own to cover a small programme at Barryroe).

The company has an extensive catalogue of exploration prospects in Ireland’s Atlantic Margin.

It was the first in the basin, and it has since been joined in the region by several larger oil firms – including the likes of CNOOC via Nexen, Exxon, Statoil, and Total.

Advancing West Coast assets too

Just this week, Providence updated investors on its plans to drill a well on the Newgrange prospect which could be a lower cost (and therefore lower risk) test of a potentially large accumulation.

Newgrange is a shallower target compared with other Atlantic prospects, at a depth of around 500 metres, and as a result it can be drilled more quickly and a well could be drilled for a comparatively low cost.

Potentially, a well at Newgrange could be added to planned third-party drill campaigns on nearby licences, which would take place next year, and in that regard Providence, in this week’s stock market statement, said commercial negotiations were being advanced.

“As the Newgrange well duration is expected to be extremely short, given that the primary Cretaceous reservoir target is just c. 500 metres below the seabed, we are talking to other Operators regarding potential rig-share opportunities,” Providence technical director Dr John Sullivan said.

“In addition, the Newgrange partners are in dialogue with a number of third parties regarding a potential farm-out of equity in this low cost high potential exploration project."

Newgrange is just one of several projects that will likely come forward out of the portfolio now that the Barryroe project is moving forward. Events of the past months clearly give confidence that Providence is certainly now a company that does deals – the Barryroe transaction marks the fourth farm-out in the last year

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Wed, 04 Apr 2018 15:11:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/194261/providence-resources-set-for-value-catalysts-as-barryroe-breakthrough-has-fired-starting-pistol-on-a-busy-period-194261.html
<![CDATA[News - Providence Resources advances preparations for future drilling at Newgrange prospect ]]> http://www.proactiveinvestors.co.uk/companies/news/194117/providence-resources-advances-preparations-for-future-drilling-at-newgrange-prospect-194117.html Providence Resources PLC (LON:PVR) told investors it has secured an extension to the frontier exploration licence hosting the Newgrange prospect, off Ireland’s west coast.

The Irish authorities have now extended the first phase of the licence out to March 2019 to allow more time for the acquisition of new 3D seismic data over the crest of the Newgrange target. It is anticipated that this desktop work will the company to advance the planning of an exploration well.

"We are very pleased to be granted this extension to the Newgrange licence, which will allow for the acquisition of a new high resolution 2D seismic survey together with seabed data which may allow us to further de-risk the Newgrange prospect,” said Dr John O’Sullivan, Providence technical director.

“These data will also facilitate commencement of the detailed planning process for the Newgrange exploration well.”

Farming out

Providence last week struck a long anticipated partnership deal, bringing a Chinese company into the Barryroe project and securing funding to advance the project towards production.

Providence added today that it continues to progress commercial negotiations for Newgrange and it is also talking with neighbouring operators given the potential synergies for an expedited drill programme that could be tacked onto anticipated nearby drill programmes.

Newgrange is a shallower target compared with other Atlantic prospects, at a depth of around 500 metres, and as a result it can be drilled more quickly and a well could be drilled for a comparatively low cost.

O’Sullivan added: “As the Newgrange well duration is expected to be extremely short, given that the primary Cretaceous reservoir target is just c. 500 metres below the seabed, we are talking to other Operators regarding potential rig-share opportunities.

“In addition, the Newgrange partners are in dialogue with a number of third parties regarding a potential farm-out of equity in this low cost high potential exploration project."

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Tue, 03 Apr 2018 07:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/194117/providence-resources-advances-preparations-for-future-drilling-at-newgrange-prospect-194117.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180328090545_13584686/ Wed, 28 Mar 2018 09:05:45 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180328090545_13584686/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180328090023_13584679/ Wed, 28 Mar 2018 09:00:23 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180328090023_13584679/ <![CDATA[News - Providence Resources brings in Chinese group to develop Barryroe ]]> http://www.proactiveinvestors.co.uk/companies/news/193941/providence-resources-brings-in-chinese-group-to-develop-barryroe-193941.html Irish oil explorer Providence Resources PLC (LON:PVR) has finally found a partner for its Barryroe project in the Celtic Sea.

A Chinese consortium led by Apec Energy has agreed to take a 50% interest in the project in return for the cost of three wells and associated side-tracks.

READ: Providence Resources and Lansdowne Oil & Gas shares soar as Barryroe excitement resurfaces

Apec will pay half of the well costs itself, with the remaining 50% financed by a non-recourse loan set against future cashflow from the prospect.

Providence holds 80% of Barryroe (which will drop to 40%) and is the operator of the project. Lansdowne Oil & Gas PLC (LON:LOGP) currently owns the other 20% (10% after).

The Irish oil group has been looking for a partner at Barryroe for at least five years.

Tony O’Reilly, chief executive, said the deal was a significant transaction that would allow exploration of the different parts of the Barryroe field and give it the tools to bring the field into production.

Providence, through its Exola subsidiary, will remain in charge of the drilling programme, though beyond the three well deal, Apec has the option to take over the development.

Apec is a privately-owned Chinese group that is working in partnership with COSL, a subsidiary of China state oil giant CNOOC, and state-owned investment group JIC.

As part of the deal, Apec will be issued warrants that if exercised (at 12p) would give it a 9.9% stake in Providence.

Barryroe question answered?

Providence shares were trading as high as 625p when the excitement over Barryroe was at its height in 2013.

The subsequent decline underlines how difficult it has been for the Irish company to move the project forward.

A weak oil price will have had some impact, but the Chinese commitment can see the field turn into a significant cash generator.

Six wells have been drilled at the prospect thus far – four by Esso/Exxon in the 1970’s, one by Marathon in 1990 and Providence/Lansdowne’s well in 2011/12.

Estimated resources are 311mln barrels of oil (ignoring gas) on a 50/50 chance or 2C basis.

Should the project now advance to production, as Providence now anticipates, then it will give it a strong cash generative base.

Based on past projections, the field is itself a very significant and potentially world-class asset with production estimated at an initial 30,000 barrels per day.

Formal closure of the farm-out is expected in the third quarter this year, after which the drill targets will be selected.

Steve Boldy, Lansdowne’s chief executive, added: "The Chinese Consortium brings a wealth of technical and operational expertise.

“Upon closing, Lansdowne will retain a net 34.5MMboe of contingent resources (2C) for its 10% ownership of Barryroe, with significant additional upside in terms of further exploration potential.

“The third party funded drilling program will look to convert a sizeable amount of these resources into proven and probable (2P) reserves ahead of subsequent development and production.

"With a current market cap of just $10M, Lansdowne’s valuation equates to less than $0.3 per contingent barrel for its 10% ownership.”

Lansdowne shares rose 38% to 1.82p and Providence 18% to 11.1p.

 

- adds detail and share prices --

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Wed, 28 Mar 2018 08:07:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/193941/providence-resources-brings-in-chinese-group-to-develop-barryroe-193941.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180308140600_13560220/ Thu, 08 Mar 2018 14:06:00 +0000 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180308140600_13560220/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180308140032_13560213/ Thu, 08 Mar 2018 14:00:32 +0000 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180308140032_13560213/ <![CDATA[News - Providence Resources and Lansdowne Oil & Gas shares soar as Barryroe excitement resurfaces ]]> http://www.proactiveinvestors.co.uk/companies/news/189392/providence-resources-and-lansdowne-oil-gas-shares-soar-as-barryroe-excitement-resurfaces-189392.html In case you missed it, Irish oil explorers Providence Resources PLC (LON:PVR) and Lansdowne Oil & Gas Plc (LON:LOGP) shares were boosted over the holiday period, as they appeared to move closer to a pivotal new partnership for the Barryroe oil field.

Barryroe is a significant oil project, with more than 1bn barrels of crude potentially present and production volumes projected at around 100,000 barrel per day but for several years the pre-development project has stalled.

READ: Providence Resources and Lansdowne Oil & Gas closer to Barryroe farm-out with signing of exclusivity deal

Put simply, the project would be too big and too expensive for Providence and Lansdowne to take forward into production alone.

They have been seeking larger partners, with deeper pockets, ever since the breakthrough well success back in 2012, though the initial optimism was dented by the collapse of crude prices from highs above US$100 per barrel.

As capital budgets tightened across the sector, the prospect of new commitments to new expensive growth projects became increasingly unlikely, and thus investors in companies such as Providence became increasingly frustrated.

Now, however, crude prices are looking healthier (with Brent now staying comfortably above US$60) and many of the ‘financially reset’ larger oil firms are again seen to be interested in taking new projects.

Exclusive farm-out talks now advancing

On Thursday, December 28, Providence revealed that it had signed an exclusivity agreement with an unnamed potential partner for Barryroe.

This was taken as particularly significant news, as Providence added that ‘key commercial terms’ had been agreed with the possible farminee and the exclusivity period would allow negotiations to advance in order to conclude contractual negotiations.

If sealed, the partnership deal would deliver a multi-well programme at Barryroe, according to Providence chief executive Tony O’Reilly.

The news lit a rocket beneath the share prices of Providence and Lansdowne.

Having risen a further 31% on the first trading day of January to change hands at 11.5p, Providence is now up almost 100% since Thursday’s announcement, whereas, Lansdowne is up some 130% in the same period, rising to trade at nearly 2p per share in early Tuesday deals.

New Barryroe drilling in the books potentially for 2018

Providence also updated on its preparations for new drilling at Barryroe. Thursday’s statement confirmed that “various work-scopes for the planned drilling” had now begun.

“These work-scopes include well planning and consenting, together with the preparation of the invitation to Tender (ITT) for the procurement of a drilling unit, which it is planned to issue in early Q1 2018,” Providence said.

Drilling itself could potentially start in late 2018 or early 2019.

Providence holds 80% of Barryroe and it is presently the operator of the project, while Lansdowne owns the other 20%.

As those that have followed the Barryroe story closely will know, we’ve been here before with this project – this is not the first time that a game changing Barryroe transaction has been understood to be ‘incoming’ – nonetheless, with new drilling already funded and being scheduled by Providence there is now a sense of renewed optimism among investors.

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Tue, 02 Jan 2018 10:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189392/providence-resources-and-lansdowne-oil-gas-shares-soar-as-barryroe-excitement-resurfaces-189392.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180102090541_13481808/ Tue, 02 Jan 2018 09:05:41 +0000 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180102090541_13481808/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180102090042_13481806/ Tue, 02 Jan 2018 09:00:42 +0000 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20180102090042_13481806/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171228140548_13479368/ Thu, 28 Dec 2017 14:05:48 +0000 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171228140548_13479368/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171228140043_13479362/ Thu, 28 Dec 2017 14:00:43 +0000 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171228140043_13479362/ <![CDATA[News - Providence Resources and Lansdowne Oil & Gas closer to Barryroe farm-out with signing of exclusivity deal ]]> http://www.proactiveinvestors.co.uk/companies/news/189307/providence-resources-and-lansdowne-oil-gas-closer-to-barryroe-farm-out-with-signing-of-exclusivity-deal-189307.html Providence Resources PLC (LON:PVR) and Lansdowne Oil & Gas Plc (LON:LOGP) are now closer to sealing a farm-out deal for the Barryroe field, in the Celtic Sea offshore Ireland, with the signing of an exclusivity agreement with a potential partner.

Lansdowne shares jumped 40% in Thursday’s early transactions, while Providence shares gained 7.87%.

READ: Providence Resources gets consent to transfer Celtic Sea interests

The two AIM-quoted explorers intend to drill again at Barryroe in 2018, and landing a long-awaited new partnership would be a significant boon to those plans.

“The company has continued to engage with interested co-venture partners and earlier this month, having reached provisional agreement on key commercial terms with a potential farminee, we have granted a period of exclusivity to them in order to conclude contractual negotiations which, if successful, would deliver a multi-well programme at Barryroe,” said Tony O’Reilly, Providence chief executive.

“However, given its conditional nature and subjectivity to final contracts, no specific commercial details are being released at this time. 

“Shareholders should note that there is no certainty that this farm-in will be concluded and further announcements will be issued in due course and as appropriate.”

READ: Providence Resources details new Barryroe drill programme

At the same time, Providence also confirmed that French oil major, Total, has now exercised its option to remain partnered in its Atlantic exploration venture, sealing its acquisition of a 35% stake in Frontier Exploration Licence 2/14 – which contains/contained the Druid, Drombeg, and Diablo assets.

Cairn Energy PLC (LON:CNE), meanwhile, has allowed its option to buy-into the Licence Option 16/27, the Avalon project, lapse. Total retains its 50% stake and operatorship of the Avalon venture.

Summing up the remaining portfolio adjustments, O’Reilly added: “Elsewhere in the portfolio, the impetus being shown by the ENI-led FEL 3/04 (Dunquin) partnership was best demonstrated by the JV's accelerated decision to license a new 3D seismic data-set over the area. 

READ: Cairn Energy in the middle of a “massive year” - broker

“It is hoped that these new data will help differentiate between the ‘breached’ Dunquin North structure and the potentially sealed Dunquin South exploration prospect. 

“Finally, as announced at the Atlantic Ireland conference in Dublin in October, we have committed to a pre-drill site survey in 2018 over our Newgrange prospect in FEL 6/14, where we hold an operated 80% interest and which is also the subject of significant commercial interest.”

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Thu, 28 Dec 2017 08:18:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189307/providence-resources-and-lansdowne-oil-gas-closer-to-barryroe-farm-out-with-signing-of-exclusivity-deal-189307.html
<![CDATA[News - Providence Resources gets consent to transfer Celtic Sea interests ]]> http://www.proactiveinvestors.co.uk/companies/news/186637/providence-resources-gets-consent-to-transfer-celtic-sea-interests-186637.html Providence Resources PLC (LON:PVR) has received the go-ahead to conclude previously agreed partnership deals offshore Ireland.

The Minister of State at the Department of Communications, Climate Action and Environment has given consent for Providence to transfer stakes in certain projects.

READ: Providence Resources details new Barryroe drill programme

It is now able to assign a 10% interest in the Helvick project in the Celtic Sea to Lansdowne Oil & Gas Ltd (LON:LOGP).

The company will also assign 10% of Helvick to Nu-Oil and Gas Plc (LON:NUOG) subsidiary, Marginal Field Development Company Limited, and it will assign 10% in the Dunmore project, also in the Celtic Sea.

READ: Providence Resources confirms Total farm-in to Avalon project

Additionally, the company has been given consent to acquire interests in the Dunquin South project from Atlantic Petroleum, as agreed in July 2015, where it is partnered with Eni and Repsol.

Providence now formally owns 26.846% of Dunquin South.

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Thu, 02 Nov 2017 08:21:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/186637/providence-resources-gets-consent-to-transfer-celtic-sea-interests-186637.html
<![CDATA[News - Providence Resources details new Barryroe drill programme ]]> http://www.proactiveinvestors.co.uk/companies/news/186465/providence-resources-details-new-barryroe-drill-programme-186465.html Providence Resources PLC (LON:PVR) has given investors more details of its new drill plans for the Barryroe project.

The company said in a statement that it plans to drill a new well and a side-track in either the second half of next year or the first half of 2019.

READ: Providence Resources confirms Total farm-in to Avalon project

Barryroe 48/24-K, the new well, will be positioned some 5 kilometres away from the last Barry well, on the east flank of the field.

Phase 1 drilling is targeting some 436mln barrels of oil in place, and it is expected to cost a total of US$25mln, with Providence’s share at around US$20mln.

Providence highlighted that the two planned well penetrations are designed to provide further "definition around structure, reservoir, fluid phase, connectivity and resource estimates" - thereby materially moving the east flank of the Barryroe field towards development.

READ: Providence Resources receives US$5.4mln from Total

Additionally, the company highlighted that it is planning a site survey for the Newgrange exploration area, which is located between the southern Porcupine and Goban Spur Basins, with the operations anticipated in the summer.

The aim is to advance Newgrange for potential exploration drilling, anticipated between 2019 and 2020.

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Tue, 31 Oct 2017 07:27:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/186465/providence-resources-details-new-barryroe-drill-programme-186465.html
<![CDATA[News - Providence Resources confirms Total farm-in to Avalon project ]]> http://www.proactiveinvestors.co.uk/companies/news/185773/providence-resources-confirms-total-farm-in-to-avalon-project-185773.html Providence Resources PLC (LON:PVR) told investors that Total has now taken up its option to farm-in to the Avalon exploration project, offshore Ireland.

In a statement, the company said that Total now has 50% of the Licensing Option (LO) 16/27 following approval by Ireland’s Minister of State at the Department of Communications, Climate Action and Environment.

READ: Providence Resources receives US$5.4mln from Total

Under the terms of the deal, Total pays Providence US$175,000 for pro-rata past costs, as well as covering further costs up to US$1.33mln.

Should the partners take the licence option further, converting into a frontier exploration licence, then Total will cover 60% of the drilling costs up to a maximum of US$42mln.

Total will be the operator, with 50%, while Providence retains 40% meanwhile Sosina has 10%.

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Wed, 18 Oct 2017 07:36:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/185773/providence-resources-confirms-total-farm-in-to-avalon-project-185773.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171009164044_13390879/ Mon, 09 Oct 2017 16:40:44 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171009164044_13390879/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171009163537_13390874/ Mon, 09 Oct 2017 16:35:37 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20171009163537_13390874/ <![CDATA[News - Providence Resources receives US$5.4mln from Total ]]> http://www.proactiveinvestors.co.uk/companies/news/184804/providence-resources-receives-us54mln-from-total-184804.html Providence Resources PLC (LON:PVR) has confirmed that the company has now received a US$5.4mln payment from Total.

It is the second and final payment from Total under the option agreement for the Frontier Exploration Licence 2/14 exploration area, offshore Ireland, the company said in a statement.

READ: Providence Resources confirms completion of west Ireland programme

Earlier this week, on Tuesday, it was confirmed that the Stena IceMAX deep-water drillship used to drill the recent exploration well off Ireland’s west coast has now completed all requisite plug and abandonment operations. It is now off hire and has departed the well site, in transit back to Las Palmas, Gran Canaria.

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Fri, 29 Sep 2017 07:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/184804/providence-resources-receives-us54mln-from-total-184804.html
<![CDATA[News - Providence Resources confirms completion of west Ireland programme ]]> http://www.proactiveinvestors.co.uk/companies/news/184570/providence-resources-confirms-completion-of-west-ireland-programme-184570.html Irish oil firm Providence Resources PLC (LON:PVR) has confirmed the completion of its offshore work programme in the Atlantic Margin.

The Stena IceMAX deep-water drillship used to drill the recent exploration well off Ireland’s west coast has now completed all requisite plug and abandonment operations.

READ: Providence Resources confirms it will drill again at Barryroe, without a farm-out

It is now off hire and has departed the well site, in transit back to Las Palmas, Gran Canaria.

Providence still awaits news from Total, which has an option to retain a stake in the remaining exploration acreage in Frontier Exploration Licence 2/14, located in the southern Porcupine basin.

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Tue, 26 Sep 2017 07:50:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/184570/providence-resources-confirms-completion-of-west-ireland-programme-184570.html
<![CDATA[News - Providence Resources confirms it will drill again at Barryroe, without a farm-out ]]> http://www.proactiveinvestors.co.uk/companies/news/184353/providence-resources-confirms-it-will-drill-again-at-barryroe-without-a-farm-out-184353.html Providence Resources PLC (LON:PVR) chief executive Tony O’Reilly has confirmed that the Irish oil firm intends to drill a new well on the Barryroe field without a new partner.

The company, which owns 80% of the undeveloped Celtic Sea oil field, had been frustrated in its efforts to secure a new partnership for Barryroe, but, in the wake of a recent exploration disappointment off Ireland’s west coast, the project has provided something of a silver lining for investors.

Providence raised new capital for the Atlantic adventure, and it also landed investment from blue-chip oil partners too. As a result, the exploreris left with sufficient funds to take new steps at Barryroe.

O’Reilly, in Providence’s half yearly results statement, told investors: “At Barryroe, we have continued farm-in discussions - but to date, no deal has been consummated. Whilst discussions continue, the board has taken a decision to advance drilling at Barryroe. 

“Noting the significant value attributable to Barryroe and prevailing low rates for rigs and associated offshore services, we have moved forward with planning for drilling (and possibly a side-track).

“Last month, we issued a request for expressions of interest for the supply of a mobile offshore drilling unit and have started the consent process for drilling. 

“The details on the forward dates for the planned drilling programme will be communicated once the schedule is finalised.”

A breakout success at Barryroe back in 2012 sent Providence shares soaring, only to fall back as farm-out negotiations stalled amid increasingly challenging oil markets as the falling price of crude took growth project off the table for ‘Big Oil’.

Providence sees Barryroe as a 100,000 barrel per day operation at its anticipated peak but it is understood that further appraisal work is required for the development.

While Providence is prepared to drill without a new exploration partner, the support of a development partner would still be needed to take the major project into production.

Atlantic disappointment

Providence shares have tumbled some 60% in recent weeks following the disappointing results from the Druid-Drombeg exploration well – which targeted two prospects that could’ve held some 5bn barrels of crude but were found to be water bearing.

The explorer had executed commercial deals with Cairn Energy and Total for the Atlantic Margin project.

Presently, Providence is awaiting a decision from Total which has an option to participate in the exploration area moving forward, with other un-tested targets such as Diablo still on the board for Providence.

READ: Providence Resources to focus on new Barryroe drilling after Drombeg disappointment

Similarly, Cairn has an option to participate in the exploration of the Avalon prospect and Providence is also waiting for the partner to make a decision.

“The drilling of the 53/6-1 Druid/Drombeg exploration well was a major operational undertaking for Providence, being situated in the deepest water depth ever drilled offshore north-west Europe,” O’Reilly said.

“The results from the 53/6-1 well were disappointing as, while both reservoir sections were encountered within the pre-drill depth prognosis, both were water bearing.

“The possible presence of bitumen was reported in drill cuttings within the Drombeg reservoir interval, which may indicate that it received an oil charge which was not retained at this location. However, further studies will be required in order to confirm this interpretation and its implications for the wider prospectivity within FEL 2/14.”

The Providence boss added: “Providence remains the most active explorer offshore Ireland, with over 20 years' operational experience generally and specifically some 13 years since it first licensed acreage in the Porcupine Basin. 

“Looking ahead, we will continue to seek to capitalise on the significant and unrealised value of our portfolio for the benefit of our shareholders."

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Thu, 21 Sep 2017 07:42:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/184353/providence-resources-confirms-it-will-drill-again-at-barryroe-without-a-farm-out-184353.html
<![CDATA[News - Providence Resources shareholder increases stake amid price volatility ]]> http://www.proactiveinvestors.co.uk/companies/news/183817/providence-resources-shareholder-increases-stake-amid-price-volatility-183817.html A stock market statement on Tuesday Morning revealed that Providence Resources PLC (LON:PVR) shareholder Pageant Holdings increased its stake in the explorer amid yesterday’s share price volatility.

Providence dropped as much as 40% at one point on Monday after it confirmed negative well results, revealing that the Drombeg exploration prospect contained water rather than oil.

READ: Providence Resources to focus on new Barryroe drilling after Drombeg disappointment

Pageant’s stake in Providence increased on September 11 to 57.95mln shares, or 9.7%, up from a prior declaration of a 49.3mln share or 8.25% stake back in August.

The apparent signal of support wasn’t sufficient to move the Providence price into positive territory, with the share down just over 2% on Tuesday to trade at 5.52p. 

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Tue, 12 Sep 2017 09:48:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183817/providence-resources-shareholder-increases-stake-amid-price-volatility-183817.html
<![CDATA[News - Providence Resources to focus on new Barryroe drilling after Drombeg disappointment ]]> http://www.proactiveinvestors.co.uk/companies/news/183749/providence-resources-to-focus-on-new-barryroe-drilling-after-drombeg-disappointment-183749.html Providence Resources PLC (LON:PVR) shares took another big hit on Monday, after the Irish explorer revealed that the second and final target in its exploration programme was found to be water bearing.

The Irish explorer was down 2p, 25.8%, changing hands at 5.75p and at one point had traded down to 4.81p, which was a new 52-week low.

It follows a similarly disappointing result for the well’s Druid exploration target.

The Irish exploration well will now be being plugged and abandoned.

"The 53/6-1 well results at the Drombeg level are disappointing and we will now assess these well data in order to understand what implications they have for prospectivity within the licence including in the underlying pre-Cretaceous Diablo Prospect together with other anomalies within FEL 2/14,” said Tony O’Reilly, Providence chief executive.

O’Reilly said that frontier exploration requires perseverance and he highlighted that more drilling will take place nearby – in the neighbouring licence – where the Chinese state explorer is targeting a play that’s similar to Providence’s untested Diablo prospect.

The negative impact of the exploration disappointment is somewhat mitigated by the fact that it was funded by some US$45mln of outside capital, provided by separate partnership deals with Cairn Energy and Total.

Attentions now turn to Barryroe

Providence still retains a significant amount of capital, thanks to the Cairn and Total deals, and, as a result the company may be able to move on from the exploration disappointment relatively quickly by returning to Barry, its would-be flagship project.

The company has spent several years trying to bring a partner into the Barryroe project, in the Celtic Sea off Ireland’s south coast, where it has a proven oil field and plans to build a large and significant production operation.

It is a big project that would eventually target some 100,00 barrels of oil production per day, and as such it is expected to have significant start-up capital costs.

Now, after the Druid-Drombeg disappointment, Providence appears to be taking more involved approach with plans to drill a new well.

Partnership deals are said to have been close to fruition in the past, and, in July, the company repeated that it was in “dialogue with a number of parties regarding advancing the appraisal of Barryroe through to first oil”.

It had previously been flagged that Barryroe may require further appraisal, and, thanks to the commercial deals before the west coast programme the company now has enough funds to get back to work at Barryroe.

Undeniably, a partnership deal will still be necessary to advance the large project into the development phase, nonetheless, positive appraisal well results would likely expedite negotiations and ultimately move the company closer to production.

Strategically, a successful programme may also buy the Providence management team sufficient time and good will to allow the broader Atlantic Margin exploration story to advance as the recent influx of international oilers take their new earlier stage projects forward.

Providence has been making preparations for the new Barryroe programme in recent weeks.

Investors will now await Providence’s financial results statement, due September 21, for further guidance on its Barryrow plans.

There may still be reason to look again at Drombeg

Whilst this programme has not delivered, for either Druid or Drombeg, analysis of the latter did provide a glimmer of positivity for future exploration.

The company highlighted that the presence of bitumen in drill cuttings was reported within the Drombeg reservoir interval and, according to Providence, this suggests the potential that there was an early oil charge in the reservoir but it was not retained in this particular location.

Drombeg is seen as a fan system, and it was noted by Providence that the positioning of the exploration well had prioritised the earlier target (Druid), with the decision to extend out to test Drombeg coming only after the budget increased as the Cairn Energy tie-up was agreed.

Indeed, the well had been described as ‘not optimally geologically located’ for Drombeg and it was said to be at the margin of the system.

Time and further analysis will tell whether or not there is any material follow up is warranted at Drombeg, or whether the exploration area is a write-off altogether.

Investors will, however, get a clue in the coming weeks as Total will now have 60 days to take up its option for a 35% stake in the frontier exploration licence.  Similarly, Cairn has 60 days to decide whether to take up an option for a 20% stake in the separate Avalon prospect.

In the meantime, it looks like it will continue to be a volatile time for Providence shares.

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Mon, 11 Sep 2017 11:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183749/providence-resources-to-focus-on-new-barryroe-drilling-after-drombeg-disappointment-183749.html
<![CDATA[News - Providence Resources Irish exploration well disappoints ]]> http://www.proactiveinvestors.co.uk/companies/news/183724/providence-resources-irish-exploration-well-disappoints-183724.html Providence Resources PLC (LON:PVR) has revealed the disappointing news that Drombeg, the second and final target in its exploration programme, has been found to be a water bearing reservoir.

It follows a similarly disappointing result for the well’s Druid exploration prospect. The Irish exploration well will now be being plugged and abandoned.

"The 53/6-1 well results at the Drombeg level are disappointing and we will now assess these well data in order to understand what implications they have for prospectivity within the licence including in the underlying pre-Cretaceous Diablo Prospect together with other anomalies within FEL 2/14,” said Tony O’Reilly, Providence chief executive.

READ: Providence Resources looks to Drombeg target after Druid disappoints

“Frontier exploration requires perseverance and we look forward to seeing the outcome of exploration wells planned for acreage proximate to FEL 2/14, which will test plays similar to Diablo and to those which have proved to be successful in the conjugate Flemish Pass Basin, offshore Canada."

O’Reilly highlighted that the exploration well is in the deepest water of any exploration well ever drilled offshore Ireland and is an important operational milestone for Providence.

READ: Providence Resources outlines Avalon, another high potential exploration prospect offshore Ireland

He added: “Furthermore, through our pre-drill commercial transactions with Cairn (farm-in) and TOTAL (Option), Providence's financial exposure to the well was significantly reduced, thereby ensuring that we remain well funded for our forward drilling operations offshore Ireland, with Barryroe being planned as our next well in this programme."

Providence had a 56% stake in the well, alongside partner Cairn which owned 30%.

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Mon, 11 Sep 2017 07:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/183724/providence-resources-irish-exploration-well-disappoints-183724.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170908140535_13357044/ Fri, 08 Sep 2017 14:05:35 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170908140535_13357044/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170908140025_13357034/ Fri, 08 Sep 2017 14:00:25 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170908140025_13357034/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170907164039_13355796/ Thu, 07 Sep 2017 16:40:39 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170907164039_13355796/ <![CDATA[RNS press release - Price Monitoring Extension ]]> http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170907163534_13355790/ Thu, 07 Sep 2017 16:35:34 +0100 http://www.proactiveinvestors.co.uk/companies/rns/824/LSE20170907163534_13355790/ <![CDATA[News - Providence Resources looks to Drombeg target after Druid disappoints ]]> http://www.proactiveinvestors.co.uk/companies/news/181967/providence-resources-looks-to-drombeg-target-after-druid-disappoints-181967.html Providence Resources PLC (LON:PVR) shares dropped as much as 40% early deals on Friday after it told investors that its drilling operation offshore Ireland encountered the Druid target on-prognosis, but, the reservoir was found to be water bearing.

The first of the well’s two targets has disappointed. Druid accounted for slightly more than 3bn barrels of the well’s 5bn barrel resource potential.

Drilling will now continue down to the Drombeg target, which is anticipated some 1,000 metres beneath Druid.

Drombeg has been estimated to have the potential for 1.9bn barrels of oil.

The exploration well is located around 220 kilometres off Ireland’s west coast, in a water depth of 2,233 metres.

At around 8:30am, Providence shares were down just over 6p, 39%, trading at 9.62p.

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Fri, 04 Aug 2017 07:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/181967/providence-resources-looks-to-drombeg-target-after-druid-disappoints-181967.html
<![CDATA[News - Providence Resources outlines Avalon, another high potential exploration prospect offshore Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/180956/providence-resources-outlines-avalon-another-high-potential-exploration-prospect-offshore-ireland-180956.html Providence Resources PLC (LON:PVR) has outlined the big potential at the Avalon exploration project offshore Ireland, near the ongoing Druid-Drombeg exploration well offshore Ireland.

The company, which is partnered by Total and Sosina in the project, told investors that it has submitted a technical report regarding Avalon to Ireland’s Department of Communications, Climate Action and Environment.

It includes a large scale Petroleum Systems Model (PSM) covering Avalon and other areas of Licence Option 16/27.

READ: Providence Resources’ Druid-Drombeg exploration well has major promise

The model demonstrates that the Avalon prospect could potentially access a total hydrocarbon resource charge of 8.67bn barrels of oil and 21.43trn cubic feet of gas equivalent to c. 12 BBOE), Providence explained.

That being said, the company pointed out that it was an early assessment of the potential. “Whilst petroleum systems modelling in emerging frontier basins have inherently high degrees of uncertainty, the results of this study are directionally very positive for the potential charging of the Avalon prospect,” it added.

Providence has a 40% interest in Avalon, whereas Total can take 50% and Sosina has 10%.

Significant hydrocarbon potential

Dr John Sullivan, Providence technical director, in a statement, said: “The work completed during the first year of Licensing Option 16/27 has confirmed our view as to the significant hydrocarbon resource potential of the Paleocene "Avalon" prospect. 

“Whilst the nearby 53/6-A well programme is currently assessing the similar-aged Paleocene "Druid" stratigraphic prospect, as well as the deeper Lower Cretaceous "Drombeg" prospect, Avalon is somewhat differentiated insofar as it demonstrates a potentially different trapping mechanism with structural closure mapped in the proximal sediment transport direction. 

“The proximity of Avalon to the deeper breached "Dunquin North" oil accumulation is also a potential positive in terms of hydrocarbon sourcing.”

Sullivan added: “We look forward to working with our JV Partners to mature the Avalon prospect to drillable status."

Druid-Drombeg drilling

Providence last week kicked off the Druid-Drombeg exploration well, off Ireland’s west coast. It is a duel target which is targeting a total of some 5bn barrels of oil potential.  Here, the company is partnered with Cairn Energy, Sosina and Total has an option to acquire a 35% stake.

The Stena IceMAX deep-water drillship is contracted for the programme, and operations began after the Minister of Communications, Climate Action and Environment gave consent on July 11.

Providence told investors that a further update will be provided once the Druid prospect has been penetrated, or as appropriate, drilling is then planned to continue down to the underlying Drombeg prospect.

The programme is expected to run for 30-45 days.

The Irish oil firm has a 56% stake in the well, alongside its partner Cairn Energy which owns 30% and Sosina Exploration which has 14%. French major Total has an option to acquire a 35% stake in the project.

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Mon, 17 Jul 2017 07:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180956/providence-resources-outlines-avalon-another-high-potential-exploration-prospect-offshore-ireland-180956.html
<![CDATA[News - Providence Resources’ Druid-Drombeg exploration well has major promise ]]> http://www.proactiveinvestors.co.uk/companies/news/180909/providence-resources-druid-drombeg-exploration-well-has-major-promise-180909.html Big news elsewhere somewhat overshadowed what was in its own right the very significant announcement that drilling had begun on the Druid-Drombeg exploration well, off Ireland’s west coast.

Premier unveiled its new 1bn barrel discovery offshore Mexico, its 25% owned Zama project, on the very same morning as the Providence Resources PLC (LON:PVR) led Irish exploration well got underway.

By the afternoon, as news broke of Shell’s US$1.23bn exit from the Corrib gas field, Providence wasn’t even the day’s biggest oil and story in Ireland, let alone the broader market.

Nonetheless, the Druid-Drombeg has the potential to be five times bigger than Premier’s Zama find and successes in the deep waters of the Atlantic Margin may well in time displace Corrib as Ireland’s most significant offshore project.

The well is a major catalyst for Providence Resources, and plainly the project has spoken to the AIM-firm’s larger partners Cairn Energy and Total.

It is a very big opportunity

First and foremost Druid-Drombeg represents a very big opportunity, more than 5bn barrels across two targets.

Secondly, unlike at still-undeveloped Barryroe, Providence has already convinced larger companies to join it at an early stage. Not only does that mean the exploration costs are shared, it also means that, in the event of a success, the transition into development is less likely to stall.

Perhaps, most significant is the fact that the Providence well is likely the first in a number of wells in region.

Several major oil firms took up new exploration ground in the area, off Ireland’s west coast, a new 3D seismic exploration programme has this month begun and it has been rumoured that the a broader phase of exploration drilling could begin as soon as next year.

A somewhat less obvious thing to consider is that this new exploration programme has provided a window of goodwill in the market, one in which the company may perhaps break the Barryroe deadlock at long last.

With all the excitement of new exploration, it is fairly easy to forget that Providence already has a major oil project on its books, albeit one that was kicked deep into the long grass as the chances of a farm-out deal fizzled out around the time that crude prices retreated back in 2014.

Potential partners backed away during the sector-wide readjustments and new capex became taboo in ‘Big Oil’ boardrooms, but, the Irish oil firm also had its own financial matters to straighten out.

Last year's funding rekindled Providence

The dilutive funding deal, when it inevitably came, was no doubt painful for shareholders that had been in Providence long enough to remember the Barryroe post-appraisal highs, back when PVR changed hands for nearly 700p on AIM.

As painful as it may have been for existing shareholders at the time, the US$76.6mln funding just over a year ago was the pivotal reboot moment that has effectively set up this new exploration opportunity.

It told the market and potential new partners that Providence had weathered the oil price storm, it was still standing and it had enough backers to actively move its Irish oil business forward.

Pragmatically, the funds meant Providence could advance its West Coast exploration plans at a time, coincidently, when there was suddenly a lot more industry interest in Ireland’s Atlantic Margin.

Whilst it was able to pay for drilling by itself, the subsequent introduction of Cairn and the potential introduction of Total (via its exclusive option deal) meant that the scope of the well could be expanded.

Drilling kicked off in the second week of July, and the programme ought to last some 45-60 days.

Excitement ahead of the Druid-Drombeg has been the driver of Providence’s resurgent share price surge, the stock is up around 20% in recent weeks.

Such is the nature of oil exploration punts, it is more than likely that Providence is setting up into a somewhat binary phase now that drilling is underway. A success could see a transformational impact on the share price whereas the disappointment of a ‘dry’ well would be harshly penalised in the market.

For punters, it is high risk and high reward proposition.

Barryroe remains an elephant in the room

That being said, Barryroe remains the elephant in the room. The perennial possibility of a Barryroe deal presents something of a caveat to the binary - an unexpected third option in an otherwise binary story.

Now, admittedly, the idea that a Barryroe transaction could be suddenly come to fruition has been a long hoped for panacea for long term Providence shareholders, many of whom have had their hopes raised and then dashed more than once by this stage.

This week’s second RNS from the Irish oil firm, on Thursday, was tacit reminder that the Barryroe issue is never far from the Providence story.

Providence and partner Lansdowne, which own 80% and 20% respectively, were granted a licence extension for Barryroe, in the Celtic Sea, where the company wants to develop an oilfield able to produce up to 100,000 bopd.

Extending the licence period will, presumably, be a positive for talks that are said to be ongoing.

The first phase of the licence has been extended to July 2019, meanwhile, the overall term of the licence now lasts until July 2021. The extension is subject to the partners completing a work programme, including analysis of new 3D seismic data, and that they provide an assessment of the Jurassic and Triassic potential in the area.

O’Reilly, in a statement, said: "We are very pleased to be granted these extensions to the Barryroe licence, which provides additional security of tenure whilst we continue the farm-out process.

“The Barryroe partners are in dialogue with a number of parties regarding advancing the appraisal of Barryroe through to first oil. The extension work programme includes evaluating the deeper exploration potential of the licence, which offers exciting upside, over and above the substantial resources already identified in Barryroe."

There can be no doubt that the excitement and positivity surrounding Providence at the moment is all about west coast exploration, but, for those that have followed the company over the longer term Barryroe is a question that needs an answer.

Given the present goodwill in the market, if a Barryroe deal is a real possibility, what better time is there to strike it than now?

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Fri, 14 Jul 2017 12:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180909/providence-resources-druid-drombeg-exploration-well-has-major-promise-180909.html
<![CDATA[News - Providence Resources and Lansdowne secure licence extension as Barryroe farm-out process continues ]]> http://www.proactiveinvestors.co.uk/companies/news/180813/providence-resources-and-lansdowne-secure-licence-extension-as-barryroe-farm-out-process-continues-180813.html Providence Resources PLC (LON:PVR) and Lansdowne Oil & Gas Plc (LON:LOGP) have been granted a licence extension for the Barryroe project in Ireland’s Celtic Sea.

The first phase of Standard Exploration Licence 1/11, which hosts Barryroe, has been extended to July 2019, meanwhile, the overall term of the licence now lasts until July 2021. The extension is subject to the partners completing a work programme, including analysis of new 3D seismic data, and that they provide an assessment of the Jurassic and Triassic potential in the area.

READ: Providence Resources kicks off Druid-Drombeg exploration well

Significantly, it means Providence and Lansdowne have more time to seal a farm-out deal and advance Barryroe into the development and production phases.

"We are very pleased to be granted these extensions to the Barryroe licence, which provides additional security of tenure whilst we continue the farm-out process,” said Tony O’Reilly, Providence chief executive.

“The Barryroe partners are in dialogue with a number of parties regarding advancing the appraisal of Barryroe through to first oil.

“The extension work programme includes evaluating the deeper exploration potential of the licence, which offers exciting upside, over and above the substantial resources already identified in Barryroe."

Providence currently owns 80% of Barryroe, while Lansdowne has the other 20%. They have been seeking new partners for the project for a number of years.

Lansdowne chief executive Steve Boldy, in a separate statement,  added: “We are very pleased to be granted these extensions to the Barryroe licence, which provides additional security of tenure whilst we continue the farm-out process.”

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Thu, 13 Jul 2017 07:19:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180813/providence-resources-and-lansdowne-secure-licence-extension-as-barryroe-farm-out-process-continues-180813.html
<![CDATA[News - Providence Resources kicks off Druid-Drombeg exploration well ]]> http://www.proactiveinvestors.co.uk/companies/news/180745/providence-resources-kicks-off-druid-drombeg-exploration-well-180745.html Providence Resources PLC (LON:PVR) has confirmed that drilling operations have now begun for the Druid/Drombeg exploration well which is targeting some 5bn barrels offshore Ireland.

It is expected to be a high impact exploration programme, if the well successfully confirms the prospects seen in pre-drill analysis.

The Stena IceMAX deep-water drillship is contracted for the programme, and operations have now begun after the Minister of Communications, Climate Action and Environment gave consent on July 11.

Providence told investors that a further update will be provided once the Druid prospect has been penetrated, or as appropriate, drilling is then planned to continue down to the underlying Drombeg prospect.

READ:Providence Resources unveils two “transformative” commercial deals with French oil giant Total

The Irish oil firm has a 56% stake in the well, alongside its partner Cairn Energy which owns 30% and Sosina Exploration which has 14%. French major Total has an option to acquire a 35% stake in the project.

 

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Wed, 12 Jul 2017 07:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180745/providence-resources-kicks-off-druid-drombeg-exploration-well-180745.html
<![CDATA[News - Providence Resources says Dunquin South 3D seismic programme is complete ]]> http://www.proactiveinvestors.co.uk/companies/news/180110/providence-resources-says-dunquin-south-3d-seismic-programme-is-complete-180110.html Providence Resources PLC (LON:PVR) has confirmed that a 3D seismic exploration programme has been completed, offshore Ireland, over Frontier Exploration Licence 3/04 which includes the untested Dunquin South prospect.

The AIM-quoted, Irish oil and gas explorer owns a 26.84% stake in FEL 3/04 which is operated by Eni (owning 36.9%). Fellow partners also include Repsol (with 33.55%) and Sosina (with 2.68%).

It was part of a multi-client 3D seismic programme, contracted to offshore service provider CGC.

Providence preparing for high impact ‘double D’ well

Earlier this week, on Wednesday, Providence told investors it is expecting the Stena IceMAX deep-water drillship to arrive in Ireland in early July.

Here, Providence is partnered with Total, Cairn Energy and Sosina.

The contracted drillship has now been mobilised, from its base in Las Palmas, Gran Canaria, following receipt of a safety permit.

Drilling of the high impact Druid/Drombeg exploration well, targeting prospects representing some 5bn barrels of oil potential, is due to begin shortly after the rig arrives off the west coast of Ireland.

Providence, however, noted that the start of the programme remains subject to final regulatory consent from Ireland’s Department of Communications, Climate Action and Environment (DCCAE).

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Fri, 30 Jun 2017 08:42:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180110/providence-resources-says-dunquin-south-3d-seismic-programme-is-complete-180110.html
<![CDATA[News - Providence Resources: Drillship expected in Ireland by early July ]]> http://www.proactiveinvestors.co.uk/companies/news/179953/providence-resources-drillship-expected-in-ireland-by-early-july-179953.html Providence Resources PLC (LON:PVR) told investors it is expecting the Stena IceMAX deep-water drillship to arrive in Ireland by early July.

The contracted drillship has now been mobilised, from its base in Las Palmas, Gran Canaria, following receipt of a safety permit.

Drilling of the high impact Druid/Drombeg exploration well, targeting prospects representing some 5bn barrels of oil potential, is due to begin shortly after the rig arrives off the west coast of Ireland.

Providence, however, noted that the start of the programme remains subject to final regulatory consent from Ireland’s Department of Communications, Climate Action and Environment (DCCAE).

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Wed, 28 Jun 2017 08:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/179953/providence-resources-drillship-expected-in-ireland-by-early-july-179953.html
<![CDATA[News - Providence Resources banks US$16.2mln from Total farm-in ahead of Irish exploration well ]]> http://www.proactiveinvestors.co.uk/companies/news/179524/providence-resources-banks-us162mln-from-total-farm-in-ahead-of-irish-exploration-well-179524.html Providence Resources PLC (LON:PVR) on Tuesday revealed it has banked the first US$16.2mln from  its farm-out deal with Total.

The Irish oil explorer earlier this month inked the proposed new partnership with Total, which gives the international oil major the option to take 35% of Frontier Exploration Licence 2/14, which hosts the large Druid and Drombeg targets in the Atlantic Margin, off Ireland’s west coast.

On Tuesday, Providence confirmed that Total had made a US$20.25mln payment to Providence and Sosina in order to purchase its exclusive option (Providence’s share of the payment is US$16.2mln).

A further US$6.75mln, US$5.4mln net to Providence, will be due from Total no later than 3 business days after a ‘plug and abandon’ notice is issued for the planned 53/6-A well – i.e. once the drilling of the exploration well is complete.

The exploration well, which will test both Druid and Drombeg, is slated to spud this month.

If Total takes up its option, it will take its place in the venture alongside Providence, Sosina and Cairn Energy (which in a separate deal bought into a 30% stake in the project earlier this year).

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Tue, 20 Jun 2017 08:24:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/179524/providence-resources-banks-us162mln-from-total-farm-in-ahead-of-irish-exploration-well-179524.html
<![CDATA[News - Cantor Fitzgerald thinks today’s major commercial deals for Providence Resources a “significant step forward” ]]> http://www.proactiveinvestors.co.uk/companies/news/178899/cantor-fitzgerald-thinks-todays-major-commercial-deals-for-providence-resources-a-significant-step-forward-178899.html Cantor Fitzgerald analyst Sam Wahab thinks today’s news on two major commercial deals for Providence Resources PLC (LON:PVR) is a “significant step forward” for the offshore Ireland explorer.

In a note to clients, the analyst highlighted the AIM-listed firm’s two commercial updates today as “very positive”.

He pointed out that Providence Resources and its partner Sosina have agreed an exclusive option with French oil giant Total SA for an option on a 35% working interest in the Frontier Exploration Licence, FE 2/14 - which includes the Druid and Drombeg prospects -  for a cash payment of US$27mln - 80% or around US$22mln to Providence.

READ: Providence Resources unveils two “transformative” commercial deals

Wahab said: “This is a significant step forward for Providence in our view, securing a key industry partner in the event of a successful well result this summer (Druid – estimated: 3Bnbbo prospective, Drombeg 1.9Bnbbo), with the downside risk protected through a material, upfront, cash injection.”

In addition, the Cantor analyst noted that the Ireland-based company has also agreed a 50% farm-out deal with Total for Licensing Option, LO 16/27 also in the southern Porcupine Basin, offshore Ireland.

The analyst pointed out that Providence has also agreed an option agreement with Cairn Energy PLC (LON:CNE) for the right to farm-in to a 20% working interest in LO 16/27, with the FTSE 250 firm having already signed a 20% farm-in deal for FE 2/14..

Wahab said: “Clearly, the entrance of both Total and Cairn serves to technically de-risk the Paleocene ‘Avalon’ exploration prospect.”

Further technical, financial and operational capability

He added: “Both companies will provide further technical, financial and operational capability to the LO 16/27 joint venture group, ahead of the much anticipated high impact exploration well at the nearby Druid block this summer. “

The Cantor analyst reiterated a ‘buy’ rating and 33p target price on Providence Resources shares, which were 7.5%, or 1.12p higher at 16.12p in late morning trading.

He concluded: “We expect the company’s shareholders to remain committed to Providence’s long term strategy ahead of an active period for the company”.

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Wed, 07 Jun 2017 10:59:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/178899/cantor-fitzgerald-thinks-todays-major-commercial-deals-for-providence-resources-a-significant-step-forward-178899.html
<![CDATA[News - Providence Resources unveils two “transformative” commercial deals with French oil giant Total ]]> http://www.proactiveinvestors.co.uk/companies/news/178887/providence-resources-unveils-two-transformative-commercial-deals-with-french-oil-giant-total-178887.html Providence Resources PLC (LON:PVR) saw its shares gain 8% today after it unveiled two “transformative” commercial deals with French oil giant Total SA bringing another “super-major” on board and giving a clear programme for its oil and gas exploration programme offshore Ireland.

In late afternoon trading, Providence Resources shares were up 8.3%, or 1.25p at 16.25p, with broker Cantor Fitzgerald reiterating a 'buy' rating and 33p price target on the stock today.

READ: Cantor Fitzgerald thinks today’s deals for Providence Resources a “significant step forward”

Three months after unveiling a 30% farm-in deal with Cairn Energy PLC, the AIM-listed explorer has entered into an exclusive option agreement for a 35% farm-in deal with Total’s Irish subsidiary for the Frontier Exploration Licence, FEL 2/14 which contain  the Druid, Dromberg and Diablo prospects.

The FEL 2/14 licence, which lies in around 2,250 metre water depth in the southern Porcupine Basin and is located about 220 kilometres off the south west coast of Ireland is currently operated by Providence Resources, on behalf of its partners Capricorn Ireland Limited - a wholly owned subsidiary of Cairn Energy - and Sosina Exploration Limited. 

Total would pay US$27mln for the farm-in stake under the terms of the FEL 2/14 option - US$21.6mln for Providence and US$5.4mln for Sosina.  

Tony O'Reilly, Providence’s chief executive said: "We are delighted to have agreed this Exclusive Option with one of the world's leading E&P companies."

He added: “Should TOTAL subsequently elect to exercise the Option and farm-in to FEL 2/14, the JV Partners will have the benefit of being operated by an industry leader in deep-water hydrocarbon exploration and development".

Avalon farm-in and option deals too

In a separate deal, Total E&P Ireland has also signed a farm-in agreement with Providence Resources and Sosina which will see it take a 50% working interest in Licensing Option, LO 16/27, which contains the Avalon prospect

Under the agreement, Total will pay its pro-rata share of past gross drilling costs of around US$0.175mln and assume operatorship of the licence.

READ: Providence Resources shares lifted by Cairn Energy farm-outs

The French firm will also pay its pro-rata share,  21.4% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of around US$1.33mln.

In addition, Cairn Energy’s Capricorn subsidiary has signed an option agreement for the right to farm-in to a 20% working interest in the same licensing option.

If Cairn elects to exercise the option, in addition to paying its pro-rata share of past gross costs of up to US$0.175mln, the FTSE 250-listed firm will pay 8.6% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of US$1.33mln.

LO 16/27 lies in around 1,300 metre water depth in the southern Porcupine Basin and is located about 150 kilometres off the south west coast of Ireland.

Providence’s O'Reilly commented “This further potential transaction would serve to create a common partnership with our nearby Druid block with which Avalon shares many geological similarities."

All the agreements are subject to Irish ministerial consent, with Total potentially to become 50% owner and operator of both licences.

  -- Adds share price, story link --

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Wed, 07 Jun 2017 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/178887/providence-resources-unveils-two-transformative-commercial-deals-with-french-oil-giant-total-178887.html
<![CDATA[News - Providence Resources rejuvenated as Ireland returns to favour as oil destination ]]> http://www.proactiveinvestors.co.uk/companies/news/178238/providence-resources-rejuvenated-as-ireland-returns-to-favour-as-oil-destination-178238.html Investors in the exploration sector have been treated some very significant successes of late, though a new well starting next month promises what might be the biggest prize yet.

London listed stocks such as Hurricane Energy, Sound Energy and Falcon Oil & Gas have all been somewhat transformed by recent successes, and this summer Providence Resources PLC (LON:PVR) will likely be next in the sector’s spotlight.

Providence and new partner Cairn Energy PLC  (LON:CNE) will this summer test two very high impact exploration targets, with potential for 5bn barrels of oil, in the Atlantic margin in waters off Ireland’s west coast.

Drilling is due to start in towards the end of June, with one well testing both the Druid and Drombeg prospects.

Ireland’s biggest ever well

“We are about to drill the biggest well ever drilled offshore Ireland, indeed probably one of the biggest well’s drilled offshore Europe in a long time,” said Tony O’Reilly, Providence Resources chief executive.

“Suddenly an area that hasn’t had a lot of wells is going to have a number of wells in the next couple of years. So obviously the Druid/Drombeg well is a key well, all the industry is watching it with keen interest.”

“Other companies will be responding to it. They’ve all got committed programmes that they’re moving forward with, doing 3D [seismic], and any success with our drilling will only accelerate activity in the region.”

Initially, the explorer’s plan was to test only the Druid prospect which has been estimated to potentially host some 3.18bn barrels of crude.

March’s farm-out deal that brought in Cairn, however, advanced Providence’s plans allowing the explorer to drill deeper to also test the 1.9bn barrel Drombeg target.

Unearthing such a prize would be the kind of shot in the arm that could see Providence’s valuation bounce back, closer to the former immediately-post-Barryroe glory – in 2012, the price shot up to almost 700p after appraisal drilling success in the Celtic Basin off Ireland’s south coast.

Providence is Ireland’s first mover

“We’ve been banging the drum about offshore Ireland for the last twenty years, and for the West coast in particular since 2004 when we ventured out and we got our Dunquin and Spanish Point licences,” O’Reilly said.

“Even then we were saying this is a hot area.”

A quick glance at a recent Providence investor presentation quite succinctly underlines just how far ahead of the game the explorer was.

One slide shows a ‘map’ of Ireland’s licensed offshore acreage back in 2004. Basically, what is shows is Providence’s Dunquin and Spanish Point licences but little else but unclaimed ocean.

The other image, a comparative representation following Ireland’s 2016 licensing round, shows Providence surrounded by the names of much larger international oil firms - names such as ENI, Exxon, Statoil, CNOOC, Woodside, Cairn Energy, and BP.

“Many of the big players are now offshore Ireland, and now they’re gearing up for more future activity,” he added.

“We were ahead of the posse because we had acreage long before, so we’ve already got the 3D seismic and we’ve got our well plans.

“What we are seeing is that the industry seems to be moving pretty aggressively now towards actual activity - they all got their licensing options last year and they’re shooting seismic this year.”

Third party drilling could come as soon as next year, according to O’Reilly, who cites industry scout reports  suggesting CNOOC and Woodside may go ahead with exploration wells.

Providence may too be drilling again next year, but as the focus is presently on this summer’s work, as the follow plans aren’t yet solidified.

“We’ve got a lot of acreage.

“We’ve Avalon which is a Druid lookalike, but potentially bigger, we’ve got Dunquin South which is a different type of structure – where ENI and Repsol are our partners – than Druid and we’re acquiring 3D seismic over that.

“Then we’ve got Newgrange to the South, where we’ve got a system that is similar to Dunquin South.

“We’ve got a lot of follow-on things that we’ll be doing, though obviously our primary focus right now in the Porcupine Basin is Druid-Drombeg - but any modicum of success will just further accelerate our plans and indeed those of the other industry players.”

Barryroe remains a possible catalyst

All this exploration is in addition to all the currently unrealised value down in the Celtic Sea, where the substantial Barryroe oil field development is awaiting further ivestment.

After appraisal well success in 2012, the company had come close to sealing a partnership deal that would have brought in a development partner to fund the project into production – though that was another time, back when crude was worth more than US$100 per barrel – and ultimately the counter party failed to deliver in the end.

Barryroe’s economics still stand-up in the current oil market, but, the market impacts have nonetheless been felt due to the retreat away from spending on growth among the calibre of companies with deep-enough pockets to bank-roll the project.

Recent stabilisation of crude prices, a rebalancing among the industry majors and growing interest in Ireland as a destination for oil and gas investment have, however, meant that a deal may again be on the agenda.

As a reminder, Providence owns an 80% stake in Barryroe which is located in the Celtic Sea, adjacent to the Petronas operated Kinsale Head gas field. The project is believed to contain just over 1bn barrels of oil in place, with some 311 barrels said to be recoverable.

A possible development outlined by Providence sees a phased development plan across the filed, the first phase project planned at some 30,000 bopd.

As well as an improved oil price and better appetite providing a boon, the company also expects to achieve significant costs savings compared to prior estimates which were devised when there was much more demand for equipment and services.

A deal for Barryroe remains a potential game-changing catalyst for Providence, especially as investors have been waiting for several years and it is far from factored into the current share price.

O’Reilly is meanwhile sticking to his rather consistent messaging regarding Barryroe, giving little away, commenting: “commercial negotiations are ongoing.

However, he does add that, ”One of the things that the capital raising last year achieved was  to free up our balance sheet and this allows us to move forward with commercial discussions.

“There are a number of commercial discussions ongoing, at Barryroe as well as some other assets in the Porcupine Basin.”

Barryroe is distinctly separate from the Atlantic Margin exploration assets being tested in the coming weeks and months, so there’ll be little in the way of a direct ‘read-across’.

That being said, a successful discovery off the west coast will go a long way to cement the Irish oil frontier, and would potentially further investment. And, one might presume that any of the new entrants to Ireland that seek a long-term footing in the country may welcome the opportunity to build in already blue-printed production growth whilst the Atlantic assets mature.

Still so much promise for investors

Plainly, Providence remains a company with a lot of promise.

It has already a long, and at times meandering road, but, the problems and financial uncertainties of the past are now history.

With the offshore drilling now within sight, it is time to start getting excited about exploration again – and with some 5bn barrels to potentially tap in one well this summer, there’s certainly plenty for investors to be getting excited about.

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Wed, 24 May 2017 07:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/178238/providence-resources-rejuvenated-as-ireland-returns-to-favour-as-oil-destination-178238.html
<![CDATA[News - Providence Resources and partners confirm Dunquin extension ]]> http://www.proactiveinvestors.co.uk/companies/news/178118/providence-resources-and-partners-confirm-dunquin-extension-178118.html Providence Resources PLC (LON:PVR) and its partners have received confirmation of the Dunquin exploration licence 3/04 until 2025 subject to planned work being carried out.

The licence lies in 1,500m water in the southern Porcupine Basin around 170 km off the south west coast of Ireland. 

Eni Ireland (36.913%) is the operator with Repsol (33.557%), Providence Resources (26.846% ) and Sosina Exploration (2.684%) the other consortium members.

FEL 3/04 contains the 2013-drilled Dunquin North and the undrilled Dunquin South exploration prospect.

The work programme includes 1,800 sq km of 3D seismic work to acquire this data now underway.

Tony O'Reilly, Providence’s chief executive, said: "We are pleased to have received this confirmation from the government on the licence extension as we continue to move forward with the evaluation of this licence."

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Mon, 22 May 2017 08:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/178118/providence-resources-and-partners-confirm-dunquin-extension-178118.html
<![CDATA[News - Providence Resources hires Tullow Oil exploration boss as new non-exec director ]]> http://www.proactiveinvestors.co.uk/companies/news/177772/providence-resources-hires-tullow-oil-exploration-boss-as-new-non-exec-director-177772.html Providence Resources PLC (LON:PVR) has announced the appointment of Tullow Oil plc (LON:TLW) exploration director Angus McCoss as the AIM quoted group’s new non executive director.

The Irish oil explorer, which is due to drill a well offshore in the coming months, highlighted McCoss experience at Tullow and previously Shell.

Pat Plunkett, Providence chairman, in a statement said: “The board is delighted that Angus has agreed to join us at a very exciting period in our corporate development.

“Angus brings extensive knowledge and relevant exploration experience which will assist us in further realising the very significant value in our portfolio."

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Mon, 15 May 2017 07:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/177772/providence-resources-hires-tullow-oil-exploration-boss-as-new-non-exec-director-177772.html
<![CDATA[News - Providence Resources is making preparations for more appraisal drilling at Barryroe ]]> http://www.proactiveinvestors.co.uk/companies/news/176353/providence-resources-is-making-preparations-for-more-appraisal-drilling-at-barryroe-176353.html Providence Resources PLC (LON:PVR) told investors it is making preparations for future appraisal drilling activities at Barryroe.

The company, which is still progressing farm-out talks for Barryroe, said that the appraisal and potential development of Barryroe remain key objectives.

It is now starting pre-permitting activities in anticipation of future drilling.

Speaking of the ongoing partnering process, chief executive Tony O’Reilly said: "farm-out negotiations are ongoing with various counterparties on a number of our assets. 

"Whilst we are not in a position to confirm any further details at this time, we are working diligently to successfully conclude matters.”

Providence’s next drilling catalysts come this summer, with high impact exploration in the Atlantic margin off Ireland’s west coast - that venture was recently boosted by a new tie-up with Cairn Energy.

“Off the west coast of Ireland, having made meaningful progress developing our portfolio and demonstrating its economic potential, we have also seen a marked increase in interest from industry in the region,” O’Reilly said.

“In this new operating environment, we were able to announce the farm-in by Cairn into our Druid & Drombeg drilling programme, which will see Providence's cost exposure nearly halve. 

“This puts us in an even stronger financial position, providing us with incremental cash resources whilst still allowing scope for further transactions.”

The financial results statement’s main feature was the £53.7mln recapitalisation in June.

Providence reported a €20.5mln loss for 2016, and at December 31 the company had €31.4mln of cash and equivalent.

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Wed, 12 Apr 2017 07:46:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/176353/providence-resources-is-making-preparations-for-more-appraisal-drilling-at-barryroe-176353.html
<![CDATA[News - Providence Resources expects imminent new seismic programme offshore Ireland ]]> http://www.proactiveinvestors.co.uk/companies/news/175818/providence-resources-expects-imminent-new-seismic-programme-offshore-ireland-175818.html Providence Resources PLC (LON:PVR) says a new seismic programme will soon be carried out off Ireland’s west coast.

The Irish oil and gas company - alongside partners ENI, Repsol and Sosina – told investors that a 3D seismic exploration programme will launch in the Frontier Exploration Licence (FEL) 3/04 covering the Dunquin South area.

It says the objective is to gain a better understanding of the hydrocarbon potential with the undrilled exploration prospect, and it could potentially shed further light on the 2013 results from the Exxon-led Dunquin North exploration well – which encountered a residual oil column, confirmed petroleum system but was not sufficient to be deemed a crude ‘discovery’.

An exploration of the potential of the large Dunquin Ridge, a 700 square kilometre feature underlying both Dunquin North and South, is also an objective for seismic survey.  

Dr John O’Sullivan, Providence Resources technical director, in a statement, said: “The revised ENI analysis of the 2013 44/23-1 Dunquin North well has highlighted material resource potential associated with the Dunquin South exploration prospect.

“This is evidenced by the significant commitment now being made by the JV Partners to underwrite and licence a block-wide 3D seismic survey over both the Dunquin North and Dunquin South carbonate build-ups.

“We hope that the results of this survey will improve our understanding of the acreage and lead to further drilling in the future."

Providence has a 26.8% stake in Dunquin South - while ENI owns 36.9%, Repsol has 33.5%, and Sosina holds 2.68%.

New exploration well this summer

Elsewhere, off Ireland’s west coast, Providence is due to drill a new well this summer.

Last month, the company agreed a new partnership with Cairn Energy PLC (LON:CNE) which will pay 45% of the costs to earn a 30% stake in the upcoming Druid well.

Druid, a 3.1bn barrels exploration target, is due to be drilled in June by Stena International’s IceMAX drill-ship.

There is also an option for a second well, and Cairn would pay 40% of that well’s cost (also up to US$42mln) if it goes ahead – at that point it will also earn the right to take over operatorship of the project.

Cairn and Providence are already partners offshore Ireland, in the Spanish Point appraisal project where the next programme is slated for next year.

Tony O’Reilly, Providence chief executive, said he was “extremely pleased” with bringing in a world class partner like Cairn.

 

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Mon, 03 Apr 2017 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/175818/providence-resources-expects-imminent-new-seismic-programme-offshore-ireland-175818.html