PROVIDENCE RES. Providence Resources P.L.C - Commercial Update Frontier Exploration Licence 2/14 Exclusive Option

 
TIDMPVR 
 
 
   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
   Commercial Update 
 
   Frontier Exploration Licence 2/14 
 
   Exclusive Option 
 
 
   -- PROVIDENCE & SOSINA GRANT EXCLUSIVE OPTION OVER FEL 2/14 TO TOTAL 
 
   -- PROVIDENCE & SOSINA TO RECEIVE PHASED CASH PAYMENTS OF US$ 27 MILLION 
 
   -- EXCLUSIVE OPTION GIVES TOTAL THE RIGHT TO FARM-IN TO A 35% INTEREST IN 
      FEL 2/14 
 
 
   Dublin and London - June 7, 2017 - Providence Resources P.l.c. (PVR LN, 
PRP ID), the Irish based Oil and Gas Exploration Company, today 
announces that it has entered into an Exclusive Option (the "Option") 
with TOTAL E&P IRELAND B.V. ("TOTAL"), a wholly owned subsidiary of 
TOTAL S.A. regarding Frontier Exploration Licence ("FEL") 2/14.  FEL 
2/14 lies in c. 2,250 metre water depth in the southern Porcupine Basin 
and is located c. 220 kilometres off the south west coast of Ireland. 
The licence is operated by Providence Resources P.l.c. ("Providence", 
56%) on behalf of its partners Capricorn Ireland Limited (a wholly owned 
subsidiary of Cairn Energy PLC, 30%) and Sosina Exploration Limited 
("Sosina", 14%).  FEL 2/14 contains the Paleocene "Druid", Lower 
Cretaceous "Drombeg" and Jurassic "Diablo" exploration prospects. 
 
   Under the terms of the Option, TOTAL has the option and the right, but 
not the obligation, to farm-in to a 35% working interest in FEL 2/14 
from Providence & Sosina subject to the payment of US$ 27 million to 
Providence and Sosina (US$ 21.6 million and US$ 5.4 million, 
respectively).   The Option can be exercised by TOTAL within 60 business 
days of the completion (plugging and abandoning) of the upcoming 53/6-A 
well, which is planned to spud in late June 2017 targeting the Druid and 
Drombeg prospects. 
 
   The total consideration to be paid by TOTAL to Providence & Sosina (on a 
pro rata 80/20 basis) to acquire the Option is as follows: 
 
 
   -- US$ 20.250 million (US$ 16.2 million to Providence) - payable within 10 
      business days of June 6, 2017 
 
   -- US$ 6.750 million (US$ 5.4 million to Providence) - payable no later than 
      3 business days following the issuance of the P&A notice for the 53/6-A 
      well 
 
 
   If TOTAL subsequently elects to exercise the Option, Providence, Sosina 
and TOTAL will enter into an agreed form Farm-in Agreement to effect the 
transfer of a 35% working interest and Operatorship in FEL 2/14 to 
TOTAL.  Any farm-in would be subject to the approval by the Minister of 
Communications, Climate Action and Environment. 
 
   Speaking today, Tony O'Reilly, Chief Executive of Providence said: 
 
   "We are delighted to have agreed this Exclusive Option with one of the 
world's leading E&P companies.  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". 
 
   INVESTOR ENQUIRIES 
 
 
 
 
Providence Resources P.l.c.             Tel: [phone] 
Tony O'Reilly, Chief Executive Officer 
 
Cenkos Securities plc                   Tel: [phone] 
Neil McDonald/Derrick Lee 
 
J&E Davy                                Tel: [phone] 
Anthony Farrell 
 
MEDIA ENQUIRIES 
Powerscourt                             Tel: [phone] 
Lisa Kavanagh/Peter Ogden 
 
Murray Consultants                      Tel: [phone] 
Pauline McAlester 
 
   ABOUT PROVIDENCE RESOURCES 
 
   Providence Resources is an Irish based Oil and Gas Exploration Company 
with a portfolio of appraisal and exploration assets located offshore 
Ireland.  Providence's shares are quoted on AIM in London and the ESM in 
Dublin. 
 
 
 
   ABOUT TOTAL 
 
   Total is a global integrated energy producer and provider, a leading 
international oil and gas company, and a major player in solar energy 
with SunPower and Total Solar. Our 98,000 employees are committed to 
better energy that is safer, cleaner, more efficient, more innovative 
and accessible to as many people as possible. As a responsible corporate 
citizen, we focus on ensuring that our operations in more than 130 
countries worldwide consistently deliver economic, social and 
environmental benefits. total.com http://www.total.com 
 
   ANNOUNCEMENT 
 
   This announcement has been reviewed by Dr John O'Sullivan, Technical 
Director, Providence Resources P.l.c. John is a geology graduate of 
University College, Cork and holds a Masters in Applied Geophysics from 
the National University of Ireland, Galway. He also holds a Masters in 
Technology Management from the Smurfit Graduate School of Business at 
University College Dublin and a doctorate in Geology from Trinity 
College Dublin. John is a Chartered Geologist and a Fellow of the 
Geological Society of London. He is also a member of the Petroleum 
Exploration Society of Great Britain, the Society of Petroleum Engineers 
and the Geophysical Association of Ireland. John has more than 25 years 
of experience in the oil and gas exploration and production industry 
having previously worked with both Mobil and Marathon Oil. John is a 
qualified person as defined in the guidance note for Mining Oil & Gas 
Companies, March 2006 of the London Stock Exchange.  Definitions in this 
press release are consistent with SPE guidelines. SPE/WPC/AAPG/SPEE 
Petroleum Resource Management System 2007 has been used in preparing 
this announcement. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Providence Resources plc via Globenewswire 
 
 
  http://www.providenceresources.com/html/ 
 

(END) Dow Jones Newswires

June 07, 2017 02:00 ET (06:00 GMT)

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