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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Providence Resources Plc | LSE:PVR | London | Ordinary Share | IE00B66B5T26 | ORD EUR0.001 (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.25 | 3.10 | 3.40 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2022 to Apr 2024
TIDMPVR
RNS Number : 6924Q
Providence Resources PLC
30 June 2022
Annual Results
Dublin and London - 30(th) June 2022
Providence Resources P.l.c (PVR), the Irish based energy company, is pleased to announce the publication of its annual report and accounts for the year ended 31(st) December 2021.
James Menton, Executive Chair, Providence Resources, said :
"Successful optimisation of the Barryroe Field presents a unique opportunity to develop a critically important indigenous source of oil and gas, to substitute part of the imports that will be needed to meet ongoing demand during the energy transition. The Barryroe Field has the potential to create significant employment opportunities and provide strategic and fiscal value to the Irish economy, at no cost to the Irish taxpayer.
The key barrier to progressing the project is the delay in Ministerial consent for the Lease Undertaking, to permit us to drill an appraisal well next year. Once we have the results of this appraisal well, we are confident that our development plans can be progressed rapidly and Barryroe can have a significant impact on Ireland's security of energy supply over the next two decades. It's an opportunity we cannot afford to squander as, in any scenario to 2050, there is still some level of demand for oil and gas through the duration of the energy transition to Net Zero.
2021 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Operational
-- Barryroe, North Celtic Sea (SEL 1/11)
o The exclusivity deal with SpotOn Energy was terminated in April 2021,
o The new Board undertook a strategic review of the Barryroe field,
o The K Site survey took place in Q3 2021 and was completed on time and under budget,
o In December 2021, the Board announced its preliminary outcome of the strategic review.
Financial
-- Operating loss for the period of EUR2.369 million versus EUR2.440 million in 2020,
-- Profit for the year EUR3.442 million versus loss of EUR10.358 million in 2020. The profit figure for the year was impacted by the fair value gain in warrants of EUR5.643m (2020: EUR7.581m loss),
-- Basic profit per share of 0.36 cents versus loss of 1.31 cents in 2020, -- Diluted profit per share of 0.30 cents versus loss of 0.91 in 2020,
-- At 31 December 2021, total cash and cash equivalents were EUR1.923 million versus EUR2.110 million in 2020,
-- The Company has no bank or bond debt as at 31 December 2021,
-- As part of the fundraising in May 2020, the company issued one share, one GBP0.03 warrant and one GBP0.09 warrant. There were 86,061,529 of the GBP0.03 warrants exercised in 2021 raising c. EUR2.9m. The remaining GBP0.03 warrants expired on the 6 May 2021. No GBP0.09 warrants were exercised and they expired on the 6 May 2022.
2021 IN REVIEW
Board Changes
During 2021, there were a number of changes at Board level. The Chairman, Pat Plunkett, resigned his position in July, at which time James Menton was appointed Chairman. Ann-Marie O'Sullivan and Peter Newman joined the Board in July 2021, bringing a wealth of industry and strategic communications experience to the Board. In October, Alan Linn resigned from his position as Chief Executive and, pending the recruitment of a successor, James Menton temporarily took on executive responsibilities.
Strategy
Since its formation in July 2021, the new Board has adopted a realistic and pragmatic approach to the formulation of its Barryroe Strategy. The Board has given careful regard to the dynamics of the current regulatory environment and the energy transition issues of security of supply, growing energy demand and the continuing need to attract foreign direct investment as Ireland moves towards carbon neutrality by 2050. From early August 2021, the Board immediately reassessed its key objectives and priorities. The initial and continuing priorities are as follows:
-- Follow-up and engagement with the GeoScience Regulation Office (GSRO) in relation to the application for the Lease Undertaking.
-- Ensuring that the Company has the breadth and depth of experience, competency and skills within the technical team to support the Board in the formulation and delivery of the Barryroe Strategy.
-- Enhancing the understanding of the Barryroe Project and the opportunities it presents for shareholders and all other key stakeholders.
The Barryroe Lease Undertaking - Status
The granting of the Barryroe Lease Undertaking by Minister Eamon Ryan is fundamental to the execution of the Board's strategy. Securing the Lease Undertaking has been, and continues to be, the Board's main focus.
Since August 2021, the Board has engaged proactively with the GeoScience Regulation Office (GSRO) and has written on a number of occasions to Minister Eamon Ryan, asking him to grant the Lease Undertaking as a matter of urgency. The Board has also engaged with a number of other key stakeholders, including public representatives, in order to move the DECC/GSRO review process forward. Despite a number of attempts to engage directly with Minister Ryan and other members of the Government, a decision on the Lease Undertaking is still outstanding.
In the Board's view, there is no justification for this ongoing delay, as it believes that all required technical and financial information in relation to the Barryroe Lease Undertaking has been submitted to the GSRO. The Board believes that Minister Ryan's delay in progressing the application represents a clear missed opportunity to help to ensure Ireland's energy security. The Board is confident that the Barryroe Field offers a highly valuable resource that, at no cost to the State, could contribute to:
-- Ireland's energy security over the next decade. -- Ireland's energy transition to a carbon neutral economy. -- carbon reduction through import substitution. -- significant job creation and tax contributions.
Irish Government Policy and Barryroe
In September 2019, the Irish Government affirmed that all existing licences, which included Barryroe, would be allowed to run their full term. It should be firmly understood that Barryroe is a discovered oil and gas field, not a wildcat prospect, in relatively shallow waters not far off the coast of Cork. It requires an appraisal well to be drilled to confirm the reservoir and hydrocarbon characteristics before a phased development can be initiated. That well can be progressed only once the Lease Undertaking is issued. It is our view that the potential offered by the successful exploitation of the Barryroe Field would be an important element in the execution of Government policy, as enunciated by the Department of the Environment, Climate and Communications' "Policy Statement on Security of Electricity Supply" (November 2021) and Section 3.7 of the "National Risk Assessment 2021/2022 - Overview of Strategic Risk".
As a bloc, the EU is desperately scrambling for options to move away from its dependence on Russian oil and gas and maintain future energy security. In Ireland, we don't need to go through the process of locating further oil and gas fields that the UK and Norway are now planning to undertake. We already have a discovery in Barryroe, however, until the Minister approves the Lease Undertaking, our near-term energy security is substantially in the hands of other countries.
Current Government policy does not restrict Ireland's use of hydrocarbon fuels; it merely precludes new searches for more of them in our own waters. The Board believe that the Irish Government's delay in allowing progress on its existing oil and gas licences, given the current energy security pressures, adds unnecessarily to the risk of energy shortages.
The Case for Barryroe
Geopolitical Challenges
The war in Ukraine has re-emphasised the value of national self-sufficiency across the whole range of primary energy sources. As Ireland moves towards a much bigger share of renewable sources through the transition to 2050, there will be an ongoing, albeit diminishing, level of residual demand for oil and gas to meet Ireland's energy consumption needs. The impact of rising imported energy prices and the growing potential for significant interruption to imported energy supplies is currently a key focus for all Governments throughout Europe.
Energy Security and Vulnerability
The Economic and Social Research Institute (ESRI) recently ranked Ireland as the fourth-most energy insecure country in Europe. Currently, Ireland imports 70% of its gas needs through two interconnectors running from Scotland to Ireland. The remaining 30% comes from the Corrib Field, which will be depleted by the end of the decade.
Ireland's reliance on the UK for our energy needs puts the country in an extremely vulnerable position and is totally unsustainable. Following Brexit, Ireland is no longer compliant with the EU's requirements for energy security according to the Commission for Regulation of Utilities (CRU). Ireland's gas import infrastructure currently runs through a "third country", and there is no legal obligation on the UK to consider Ireland's energy needs in the event of significant disruption. The irony is that Ireland has a unique opportunity to harness its own supply of oil and gas by optimising the Barryroe Field. Not to do so would, in the Board's view, have a detrimental impact on Ireland's energy transition and would represent a very significant missed opportunity from a strategic, fiscal and energy security perspective.
Energy Transition - The Need for Barryroe
Ireland has a clear goal of being carbon neutral by 2050 and we acknowledge that expanding renewable sources of energy must be the main focus in the years ahead. However, most of our transport options, including cars, vans and airplanes, run on oil and transitioning completely away from oil will not happen
overnight. In reality, Ireland's commitment to achieving net-zero carbon emissions by 2050 cannot be achieved without realistic transition planning. Successful exploitation of the Barryroe Field, in conjunction with industry and government, can contribute significantly to meeting Ireland's energy demand during the transition over the coming decades without prejudicing achievement of a carbon neutral economy in Ireland.
Environmental Benefits - Carbon Reduction Through Import Substitution
The benefits of indigenous sources of energy are significant. For example, gas produced in Ireland and in Europe results in up to 30% less carbon emissions than gas from outside Europe. This is due to a combination of more efficient production technologies and less energy expended due to shorter pipeline transport (given that long distance pipeline transport requires pumping booster stations).
Technical Strategy
The Board recognised the need to engage a team of experts to lead on the development of a technical strategy. In the wake of the failed "SpotOn" farm out, and the resumption of the Company's direct management of the Barryroe project, the Board evaluated Providence Resources' technical approach and expertise. The Board appointed NRG Well Management International Ltd (NRG) to lead the recruitment and organisation of an expanded technical team. The team completed four major studies to underpin the technical strategy, in particular an updated Competent Persons Report (CPR), commissioned from RPS Energy Consultants (RPS), which was completed at the beginning of February 2022.
The new report confirms 81.2 MMstb of Gross 2C oil resources that can be accessed through an initial two-phase development project, addressing one reservoir in the central segments of the Field only, those closest to the 2012 oil discovery well. The CPR, which remains consistent with the 2013 whole field assessment, confirmed a Net Present Value (NPV) of $401m to Providence Resources' interest in this initial project only, based on a 10% discount factor and a $70 Brent oil price. The phased project is
predicated on an initial appraisal well to confirm the reservoir and hydrocarbon phase characteristics in the key Basal Wealden A Sands. The initial project is also anticipated to advance the potential for further development of other Barryroe reservoirs, including those holding its discovered gas resources.
The technical strategy for the Barryroe Field is ready to be implemented within a short timeframe. Subject to Ministerial consent for the Lease Undertaking, the Board has decided to proceed with an appraisal well in 2023. In expectation of a satisfactory outcome, the Board intends to proceed to a phased development leading to first production in 2026. The Company urgently requires a positive decision on the Lease Undertaking by Minister Eamon Ryan in order to ensure that the Barryroe Field can play a key role in Ireland's energy future.
Share Placing - June 2022
In June 2022, the Company raised gross proceeds of $1.8 million (equivalent to approximately STGGBP1.5 million) through the subscription for 45,312,316 Placing Securities and 51,686,693 Subscription Securities (each of which shall comprise one New Ordinary Share and one STG1.5p Warrant). The allotment and issue of the Warrants is subject to and conditional upon the passing of certain resolutions in relation to the Warrants at the AGM by the requisite number of shareholders as required pursuant to the Companies Act. Together with existing resources, this additional funding is sufficient to meet the anticipated working capital requirements of the Group for at least the next 12 months.
Name Change - Barryroe Offshore Energy
The Company is proposing to change its name to Barryroe Offshore Energy, which will be subject to a shareholder's resolution at the AGM. The new name reflects the Board's ongoing and continuing focus on the Barryroe Field, as we look forward to a positive outcome from the appraisal campaign.
The Future
The Board is keenly aware of the global climate crisis, which has been exacerbated by an energy crisis as a result of the war in Ukraine. The impact of rising energy prices, and the potential for significant interruption to energy supplies, is a focus for governments throughout Europe. The challenges we face are stark and any disruption to energy supplies will lead to catastrophic economic and social impacts. The prospect of rolling blackouts and/or energy rationing would also threaten Ireland's ability to attract
ongoing foreign direct investment.
It is a strategic imperative that Irish Government policy allows for a balance between ideology and pragmatism with regard to energy policy. Ireland is now at a critical juncture in planning for its energy future and all agree that we will continue to require oil and gas to supplement available renewable sources for decades to come.
Annual Report and 2022 Annual General Meeting
The Company's Annual Report and Accounts for the year ended 31(st) December 2021 will be posted later today to shareholders, together with the notice of the 2022 Annual General Meeting. These will also be available on the Company's website: www.providenceresources.com
Investor Enquiries:
o Providence Resources P.l.c. Tel: 353 1 219 4074
James Menton
Executive Chair
Investor Relations Tel: 353 87 6620234
Job Langbroek
o J & E Davy Tel: 353 1 679 6363
Anthony Farrell
Media Enquiries:
o AM O'Sullivan PR Tel: 353 87 9881890 / tina@amosullivanpr.ie
Tina Quinn
PROVIDENCE RESOURCES Plc
Condensed consolidated income statement
for the year ended 31(st) December 2021
Hot Features
Premium
Notes
Year ended Year ended
31 December 31 December
2021 2020
Audited Audited
EUR'000 EUR'000
Continuing operations
------ -------------- --------------
Administration expenses 2 (2,369) (2,163)
------ -------------- --------------
Pre-licence expenditure - (5)
------ -------------- --------------
Impairment of exploration
and evaluation assets - (272)
------ -------------- --------------
Operating loss 1 (2,369) (2,440)
------ -------------- --------------
Finance income 3 6,699 361
------ -------------- --------------
Finance expense 4 (888) (8,279)
------ -------------- --------------
Profit/(loss) before income
tax 3,442 (10,358)
------ -------------- --------------
Income tax expense - -
------ -------------- --------------
Profit/(loss) for the financial
year 3,442 (10,358)
------ -------------- --------------
Profit/(loss) per share
(cent)
------ -------------- --------------
Basic profit/(loss) per
share 8 0.36 (1.31)
------ -------------- --------------
Profit/(loss) per share
(cent)
------ -------------- --------------
Diluted profit/(loss) per
share 8 0.30 (0.91)
------ -------------- --------------
The total profit/(loss) for the year is entirely attributable to equity holders of the Company.
PROVIDENCE RESOURCES Plc
Condensed consolidated statement of comprehensive income
for the year ended 31 December 2021
Notes Year ended Year ended
31 December 31 December
2021 2020
Audited Audited
EUR'000 EUR'000
Profit/(loss) for the financial
year 3,442 (10,358)
------ ------------- -------------
Other comprehensive income
------ ------------- -------------
Items that may be reclassified
into profit and loss:
------ ------------- -------------
Foreign exchange translation gains/(losses) 4 4,982 (5,453)
------ ------------- -------------
Total comprehensive income/(expense)
for the year 8,424 (15,811)
------ ------------- -------------
The total comprehensive income/(expense) for the year is entirely attributable to equity holders of the Company.
PROVIDENCE RESOURCES Plc
Condensed consolidated statement of financial position
as at 31 December 2021
Notes 31 December 31 December
2021 2020
Audited Audited
EUR'000 EUR'000
Assets
------ ------------ ------------
Exploration and evaluation
assets 5 66,983 60,425
------ ------------ ------------
Property, plant and equipment 1 13
------ ------------ ------------
Total non -current assets 66,984 60,438
------ ------------ ------------
_______ _______
------ ------------ ------------
Trade and other receivables 388 223
------ ------------ ------------
Cash and cash equivalents 1,923 2,110
------ ------------ ------------
Total current assets 2,311 2,333
------ ------------ ------------
_______ _______
------ ------------ ------------
Total assets 69,295 62,771
------ ------------ ------------
Equity
------ ------------ ------------
Share capital 6 71,829 71,743
------ ------------ ------------
Share premium 6 260,272 256,773
------ ------------ ------------
Undenominated capital 623 623
------ ------------ ------------
Foreign currency translation
reserve 9,616 4,634
------ ------------ ------------
Share based payment reserve 767 806
------ ------------ ------------
Accumulated losses (281,370) (285,189)
------ ------------ ------------
Total equity attributable
to equity holders of
the Group 61,737 49,390
------ ------------ ------------
Liabilities
------ ------------ ------------
Decommissioning provision 7 6,056 5,853
------ ------------ ------------
Warrant liabilities 9 - 3,555
------ ------------ ------------
Total non-current liabilities 6,056 9,408
------ ------------ ------------
Trade and other payables 1,042 815
------ ------------ ------------
Warrant liabilities 9 460 3,158
------ ------------ ------------
Total current liabilities 1,502 3,973
------ ------------ ------------
Total liabilities 7,558 13,381
------ ------------ ------------
Total equity and liabilities 69,295 62,771
------ ------------ ------------
PROVIDENCE RESOURCES Plc
Condensed consolidated statement of changes in Equity
for the year ended 31 December 2021
Foreign Share
Currency Based
Share Undenominated Share Translation Payment Accumulated
Capital Capital Premium Reserve Reserve losses Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At 1 January
2020 71,512 623 251,300 10,087 642 (274,898) 59,266
--------- -------------- --------- ------------- --------- ------------ ---------
Total comprehensive
expense
--------- -------------- --------- ------------- --------- ------------ ---------
Loss for financial
year - - - - - (10,358) (10,358)
--------- -------------- --------- ------------- --------- ------------ ---------
Foreign currency
translation - - - (5,453) - - (5,453)
--------- -------------- --------- ------------- --------- ------------ ---------
Total comprehensive
expense - - - (5,453) - (10,358) (15,811)
--------- -------------- --------- ------------- --------- ------------ ---------
Transactions
with owners, recorded
directly in equity
--------- -------------- --------- ------------- --------- ------------ ---------
Share based payments
expense - - - - 448 - 448
--------- -------------- --------- ------------- --------- ------------ ---------
Share options
lapsed in year - - - - (284) 284 -
--------- -------------- --------- ------------- --------- ------------ ---------
Shares issued
in year 231 - 5,473 - - (217) 5,487
--------- -------------- --------- ------------- --------- ------------ ---------
Total transactions
with owners, recorded
directly in equity 231 - 5,473 - 164 67 5,935
--------- -------------- --------- ------------- --------- ------------ ---------
At 31 December
2020 71,743 623 256,773 4,634 806 (285,189) 49,390
--------- -------------- --------- ------------- --------- ------------ ---------
At 1 January
2021 71,743 623 256,773 4,634 806 (285,189) 49,390
--------- -------------- --------- ------------- --------- ------------ ---------
Total comprehensive
income
--------- -------------- --------- ------------- --------- ------------ ---------
Profit for financial
year - - - - - 3,442 3,442
--------- -------------- --------- ------------- --------- ------------ ---------
Foreign currency
translation - - - 4,982 - - 4,982
--------- -------------- --------- ------------- --------- ------------ ---------
Total comprehensive
income - - - 4,982 - 3,442 8,424
--------- -------------- --------- ------------- --------- ------------ ---------
Transactions
with owners, recorded
directly in equity
--------- -------------- --------- ------------- --------- ------------ ---------
Share based payments
expense - - - - 338 - 338
--------- -------------- --------- ------------- --------- ------------ ---------
Share options
lapsed in year - - - - (377) 377 -
--------- -------------- --------- ------------- --------- ------------ ---------
Shares issued
in year 86 - 3,499 - - - 3,585
--------- -------------- --------- ------------- --------- ------------ ---------
Total transactions
with owners, recorded
directly in equity 86 - 3,499 - (39) 377 3,923
--------- -------------- --------- ------------- --------- ------------ ---------
At 31 December
2021 71,829 623 260,272 9,616 767 (281,370) 61,737
--------- -------------- --------- ------------- --------- ------------ ---------
PROVIDENCE RESOURCES Plc
Condensed consolidated statement of cash flows
for the year ended 31 December 2021
Year ended Year ended
31 December 31 December
2021 2020
Audited Audited
------------- -------------
EUR'000 EUR'000
------------- -------------
Cash flows from operating activities
------------- -------------
Profit/(loss) after tax for year 3,442 (10,358)
------------- -------------
Adjustments for:
------------- -------------
Depreciation 15 24
------------- -------------
Impairment of exploration and evaluation
assets - 272
------------- -------------
Finance income (6,699) (361)
------------- -------------
Finance expense 888 8,279
------------- -------------
Share based payment charge 338 448
------------- -------------
Foreign exchange (16) 21
------------- -------------
Change in trade and other receivables (165) 175
------------- -------------
Change in trade and other payables 227 (700)
------------- -------------
Net cash outflow from operating activities (1,970) (2,200)
------------- -------------
Cash flows from investing activities:
------------- -------------
Interest received - 1
------------- -------------
Acquisition of exploration and evaluation
assets (1,492) (902)
------------- -------------
Cash calls in respect of exploration
and evaluation assets 262 57
------------- -------------
Acquisition of property, plant and equipment (2) (1)
------------- -------------
Net cash used in investing activities (1,232) (845)
------------- -------------
Proceeds from issue of security instruments 2,974 4,836
------------- -------------
Issue costs - (349)
------------- -------------
Net cash from financing activities 2,974 4,487
------------- -------------
Net (decrease)/increase in cash and
cash equivalents (228) 1,442
------------- -------------
Cash and cash equivalents at beginning
of year 2,110 710
------------- -------------
Effect of exchange rate fluctuations
on cash and cash equivalents 41 (42)
------------- -------------
Cash and cash equivalents at end of
year 1,923 2,110
------------- -------------
PROVIDENCE RESOURCES Plc
Note 1
Reporting entity
Providence Resources Plc ("the Company") is a company domiciled in Ireland. The registered number of the Company is 268662 and the address of its registered office is Paramount Court, Corrig Road, Sandyford Business Park, Dublin 18, D18 R9C7.
Basis of preparation
The consolidated preliminary financial results announcement of the Company, for the year ended 31 December 2021 comprises of the Company and its subsidiaries (together referred to as the "Group").
The financial information included in this consolidated preliminary financial results announcement has been extracted from the Group's Financial Statements for the year ended 31 December 2021 and is prepared based on the accounting policies set out therein, which are consistent with those applied in the prior year with the exception of the effect of the new accounting standards listed below. As permitted by European Union (EU) law and in accordance with AIM and Euronext Growth Market rules, the Group Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and their interpretations issued by the International Accounting Standards Board (IASB) as adopted by the EU.
The financial information prepared in accordance with IFRSs as adopted by the EU included in this report does not include all the information and disclosures required in the full statutory financial statements. The Group Financial Statements will be filed with the Company's annual return in the Companies Registration Office and circulated to shareholders in due course.
The information included has been derived from the Group Financial Statements which were approved by the Board of Directors on 23 June 2022. The auditors have reported on the financial statements for the year ended 31 December 2021 and their report was unqualified and contains a "material uncertainty related to going concern" paragraph (see going concern note below for further details). The financial information for the year ended 31 December 2020 represents an abbreviated version of the Group's statutory financial statements on which an unqualified audit report was issued and which have been filed with the Companies Registration Office. The financial information is presented in Euro, rounded to the nearest thousand where applicable.
The preparation of the condensed consolidated preliminary financial information requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results could differ materially from these estimates. In preparing this financial information, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty are the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2020, except as noted below .
Changes in significant accounting policies
New and Amended Standards and Interpretations effective during 2021
New and amended standards and interpretations
The following new standards and amendments were adopted by the Group for the first time in the current financial reporting period with no resulting impact to the consolidated financial statements:
-- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform - Phase 2.
PROVIDENCE RESOURCES Plc
Note 1 (continued)
New and amended standards and interpretations (continued)
-- Amendments to IFRS 16, COVID-19 Related Rent Concessions beyond 30 June 2021;
-- Amendments to IFRS 4 Insurance Contracts - deferral of effective date of IFRS 9;
Forthcoming requirements
A number of new standards, amendments to standards and interpretations issued are not yet effective and have not been applied in preparing these financial statements. These new standards, amendments to standards and interpretations are not expected to have a material impact on the Group's financial statements as the Group has no transactions that would be affected by these new standards and amendments.
The principal new standards, amendments to standards and interpretations are as follows:
-- Amendments to IAS 1 Classification of Liabilities as Current or Non-current;
-- Amendments to IFRS 17, Insurance contracts: Initial application of IFRS 17 and IFRS 9;
-- Amendments to IAS 1 and IFRS Practice Statement 2, Disclosure of Accounting Policies;
-- Amendments to IAS 8, Definition of Accounting Estimates;
-- Amendments to IAS 12, Deferred Tax related to Assets and Liabilities arising from a single transaction;
-- Amendments to IFRS 10 and IAS 28, Sale of contribution of Assets between an investor and its Associate or Joint Venture.
New and Amended Standards and Interpretations Issued but not yet Effective or Early Adopted
A number of new standards and interpretations have been issued but are not yet effective for the Group. These standards are either not expected to have a material effect on the Consolidated Financial Statements or they are not currently relevant for the Group.
Warrants
The warrants liability amounts to EUR0.460 million at 31 December 2021 (2020: EUR6.713 million). The warrant liability is due to the warrants being issued in GBP while the functional currency of the Parent Company was EUR.
The warrants were issued as part of the share placing in May 2020. There were two sets of warrants attached to each share. The duration for the GBP0.03 was one year and for the GBP0.09 was two years. The GBP0.03 warrants expired on 6 May 2021. At 31 December 2021, the warrants valuation amount to EUR0.46m and represents management's best estimates of the liability for the GBP0.09 warrants. The key estimate in the valuation of warrants is the volatility rate applied. The period of 18 months was used for the volatility calculation for the GBP0.09 warrants which expired on 6 May 2022. The 4-month period for the GBP0.09 warrants was determined by management as too short and would distort the volatility calculation as it is a key component when calculating the fair value using Black Scholes; see note 19. The fair value movement of the warrants is recognised in the income statement as either finance income or finance expense, depending on the movement.
Going concern
The Directors have prepared the financial statements on a going concern basis, which assumes that Group and Company will continue in operational existence for at least twelve months from the date of the approval of these financial statements.
At 31 December 2021, the Group had net assets of EUR61.737m, including cash on hand of EUR1.923m, having recorded a net cash outflow of EUR0.228m during the year. Having no source of operating revenues, in June 2022, the Company raised gross proceeds of $1.8 million (equivalent to approximately STGGBP1.5 million) through the subscription for 45,312,316 Placing Securities and 51,686,693 Subscription Securities (each of which shall comprise one New Ordinary Share and one STG1.5p Warrant) (note 12), demonstrating again the ongoing support of shareholders. Together with existing resources, this additional funding is sufficient to meet the anticipated working capital requirements of the Group for at least the next 12 months.
PROVIDENCE RESOURCES Plc
Note 1 (continued)
Going concern (continued)
In April 2021, the Group applied for a Lease Undertaking for the Barryroe Joint Venture, as the follow-on permit from the Standard Exploration Licence, SEL 1/11, which expired in July 2021. The proposed work programme centres on drilling an appraisal well, targeted for completion in 2023. The Directors note that the Irish Government has stated that all existing licences will be allowed to run their full life cycle. The Group has fulfilled all obligations relating to SEL 1/11 and the Directors believe the Barryroe Joint Venture has complied with all the requirements for Government approval of the Lease Undertaking, which would be backdated to run for upto four years from July 2021. Notwithstanding the delay thus far in securing Government consent, the Directors continue to expect that this next phase of the Barryroe Licence, and the associated proposed work programme, will finally receive approval in the coming months.
The work programme proposed under the Lease Undertaking, if granted, entails significant capital expenditure by the Barryroe Joint Venture. Consequently, prior to the letting of major commercial contracts for the appraisal well and related studies, the Directors have considered the Group's options available to fund its expenditure commitments, both current and contingent upon securing the Lease Undertaking. In particular, upon confirmation of approval of the Lease Undertaking, the Directors expect to raise substantial additional equity funding to meet the Group's share of the related obligations.
The Directors have carefully considered the current financial position of the Group and have prepared cash flow forecasts for the period to 30 June 2023, being the 12-month period from the date of approval of these financial statements. They note that the main risk factors in these forecasts are the granting of the Barryroe Lease Undertaking on acceptable terms and conditions and the completion of an appropriate further equity funding round during the period. Based on their consideration of the Group's cash flow forecasts, and the underlying assumptions, the Directors are satisfied that the Group will have access to sufficient funds to cover its working capital and capital expenditure expected over this 12-month period.
The Directors have considered the matters set out above and determined that the outstanding Government consent to the Barryroe Lease Undertaking and the requirement, contingent thereon, to secure additional funding to pursue the related Barryroe appraisal work programme in the next 12 months, constitute material uncertainties that may cast significant doubt upon the Group's and Company's ability to continue as a going concern. Should the Lease Undertaking not be approved, or appropriate additional funding not then be secured, the Directors note that the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
Nevertheless, after making enquiries and considering the uncertainties described above, the Directors have a reasonable expectation that the Group and Company will have adequate resources to continue in operational existence for the foreseeable future. The Directors expect that the Barryroe Lease Undertaking will be approved and, noting that the Group and Company has continued to have ongoing support from shareholders, that an appropriate further fundraising will be successful. For these reasons, the Directors have adopted the going concern basis in preparing these annual financial statements, which do not include any adjustments that would be necessary if this basis were inappropriate.
Operating segments
All exploration and evaluation assets held by the Group are located in the Republic of Ireland and, accordingly, the Group has identified one reporting segment, being:
Republic of Ireland exploration assets: oil and gas exploration assets in the Republic of Ireland.
PROVIDENCE RESOURCES Plc
Note 2
Administration expenses
Year ended Year ended
31 December 31 December
2021 2020
Audited Audited
------------- -------------
EUR'000 EUR'000
------------- -------------
Corporate, exploration and development
expenses 2,385 2,142
------------- -------------
Foreign exchange gain (16) 21
------------- -------------
Total administration expenses for
the year 2,369 2,163
------------- -------------
Note 3
Finance Income
Year ended Year ended
31 December 31 December
2021 2020
Audited Audited
------------- -------------
EUR'000 EUR'000
------------- -------------
Bank deposit interest income - 1
------------- -------------
Gain in fair value of warrants (note 5,643 -
9)
------------- -------------
Redetermination of decommissioning 1,056 -
provision (note 7)
------------- -------------
Foreign exchange in decommissioning
provision (note 7) - 360
------------- -------------
Total finance income recognised
in income statement 6,699 361
------------- -------------
Note 4
Finance Expense
Year ended Year ended
31 December 31 December
2021 2020
Audited Audited
------------- -------------
EUR'000 EUR'000
------------- -------------
Unwind of discount on decommissioning
provision (note 7) 593 565
------------- -------------
Foreign exchange loss on decommissioning 294 -
provision (note 7)
------------- -------------
Interest on right to use asset 1 1
------------- -------------
Issue costs associated with the
warrants - 132
------------- -------------
Loss in fair value of warrants (note
9) - 7,581
------------- -------------
Total finance expense recognised
in income statement 888 8,279
------------- -------------
PROVIDENCE RESOURCES Plc
Note 5
Exploration and evaluation asset
EUR'000
Cost and net book value
--------
At 1 January 2020 65,377
--------
Additions 902
--------
Cash call amounts received in year (57)
--------
Impairment charge (272)
--------
Foreign exchange translation (5,525)
--------
At 31 December 2020 60,425
--------
Additions 1,492
--------
Cash call amounts received in year (262)
--------
Decommissioning redetermination 287
--------
Foreign exchange translation 5,041
--------
At 31 December 2021 66,983
--------
The exploration and evaluation asset balance at 31 December 2021 relates to the Barryroe asset.
The directors assessed all activities ongoing within exploration and evaluation assets and determined that no impairment charge (2020: EUR0.27 million charge) was required at 31 December 2021.
The directors recognise that the future realisation of the Barryroe asset is dependent on the granting of the lease undertaking which is subject to government approval, future successful appraisal activities and the subsequent economic production of hydrocarbons.
Note 6
Share Capital and Share Premium
Number
('000) EUR'000
Authorised
Deferred shares of EUR0.011 each (a)
at beginning of year 9,994,066 109,385
Deferred shares of EUR0.011 each (a)
each at end of year 9,944,066 109,385
Ordinary shares of EUR0.001 each at
beginning of year 1,800,000 1,800
Ordinary shares of EUR0.001 each at
end of year 1,800,000 1,800
(a) The deferred shares do not entitle the shareholder to receive a dividend or other distribution, do not entitle the shareholder to receive notice of or vote at any general meeting of the Company, and do not entitle the shareholder to any proceeds on a return of capital or winding up of the Company.
PROVIDENCE RESOURCES Plc
Note 6
Share Capital and Share Premium (continued)
Share Share
Number capital premium
Issued 000's EUR'000 EUR'000
---------------------------------------- ----------- -------------- ---------
Deferred Shares of EUR0.011 each
At 31 December 2020 6,441,373 70,854 5,691
---------------------------------------- ----------- -------------- ---------
At 31 December 2021 6,441,373 70,854 5,691
---------------------------------------- ----------- -------------- ---------
Ordinary Shares of EUR0.001 each
At 31 December 2020 888,803 889 251,082
---------------------------------------- ----------- -------------- ---------
Shares issued during the year - - -
Warrants exercised in year 86,061 86 3,499
---------------------------------------- ----------- -------------- ---------
At 31 December 2021 (Ordinary shares of
EUR0.001) 974,864 975 254,581
---------------------------------------- ----------- -------------- ---------
At 31 December 2021 (Total deferred and
ordinary shares) 7,416,237 71,829 260,272
---------------------------------------- ----------- -------------- ---------
On 5 May 2020, the Company issued 177,973,004 ordinary shares as part of a placing and subscription agreement which raised c.EUR3.1m before expenses. Each security instrument comprised one ordinary share of EUR0.001, one GBP0.03 warrant and one GBP0.09 warrant.
On issuance, a fair value of EUR1.9m was attributed to the ordinary shares (share capital/share premium outlined above) and EUR1.2m to the Warrant instruments based on the effective share price at that date. In line with the Group's accounting policies these Warrants are presented as financial liabilities. The holder of each warrant could exercise its rights under the instrument which allowed that holder to convert the warrant into one ordinary share, with a par amount of EUR0.001, by payment of the exercise price of GBP0.03 or GBP0.09, as applicable. The warrants are non-transferrable.
On 28 May 2020, the company issued 6,116,208 Ordinary shares through a subscription agreement which raised approx. EUR0.2m. During 2020, 47,288,814 GBP0.03 warrants were exercised. The fair value of these exercised warrants was EUR2.021m.
The share capital and share premium total increase of EUR5.7m in 2020 comprised:
-- EUR1.9m on 5 May from the placing of shares; -- EUR0.2m on the 28 May 2020 from the additional subscription; -- EUR1.557m being cash received upon the exercise of warrants; and -- EUR2.021m being the fair value of the warrants exercised.
During 2021, there were 86,061,529 GBP0.03 warrants exercised which raised approx. EUR2.974m. The remaining 44,622,661 GBP0.03 warrants expired on the 6 May 2021. No GBP0.09 warrants have been exercised and the GBP0.09 warrants expired on 6 May 2022.
The fair value of the GBP0.03 warrants that were exercised was recalculated at the time exercise. The fair value of 86,061,529 warrants of GBP0.03 exercised was calculated as EUR0.610m. This fair value is added to the actual cash raised of EUR2.974m to give a total increase in share capital and share premium of EUR3.585m.
PROVIDENCE RESOURCES Plc
Note 7
Decommissioning provisions
2021 2020
EUR'000 EUR'000
At beginning of year 5,853 5,733
Unwinding of discount 593 565
Foreign exchange (gain)/loss 294 (360)
Redetermination of decommissioning
provision (769)
Translation adjustment 85 (85)
At end of year 6,056 5,853
During 2021, the Board undertook a strategic review of Barryroe. The outcome of this is that an appraisal well is planned to be drilled in 2023 preparatory to a phased development, with first oil production expected by the end of 2026 subject to Ministerial approval.
The Group anticipates that a decommissioning programme for other licence areas (since relinquished) will be undertaken at the same time as the Group's Barryroe wells, subject to regulatory consent and approval. Accordingly, all decommissioning is projected to take place in 2047.
The decommissioning provision is made up of a total of six wells. Five of the wells are held in the Parent Company, Providence Resources Plc, making up EUR4.633m of the decommissioning provision while the remaining well is held in Exola DAC for which the decommissioning provision is EUR1.423m.
The decommissioning provision has been calculated assuming industry established oilfield decommissioning techniques and technology at current prices, based on external expert reports where available and is discounted at 1.3% (2020: 10%) per annum, reflecting the associated risk profile.
The Group undertook a review of the discount rate applied to the projected costs to derive the net present value. The Board used the 20-year Irish Government Bond rates of 1.30% as an appropriate discount rate. In relation to cost inflation, experience over the last decade indicates that advances in technology and operations in the decommissioning of wells, suggests that cost inflation may reasonably be expected to be offset by gains in efficiency so the net effective cost inflation rate used was zero.
As a result of the updated calculation, there was a net EUR0.769 million adjustment to the decommissioning provision at the end of 2021. EUR1.056 million credit was adjusted through the Parent Company. The offset to this figure was registered in the income statement as finance income. The remaining sum of EUR0.287 million charge related to the Barryroe well and was capitalised in the Exploration and Evaluation assets.
PROVIDENCE RESOURCES Plc
Note 8
Earnings per share
Earnings per share are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.
Total Total
2021 2020
EUR'000 EUR'000
Profit/(loss) attributable to equity
holders of the Company 3,442 (10,358)
The weighted average number of ordinary 2021 2020
shares in issue
is calculated as follows:
In issue at beginning of year ('000s) 888,803 657,425
Adjustment for shares issued in year 58,520 130,519
Weighted average number of ordinary
shares ('000s) 947,323 787,944
cent cent
Basic profit/(loss) per share (cent) 0.36 (1.31)
The weighted average number of ordinary
shares
for diluted earnings per share calculated
as follows:
Dilutive share options 39,683 37,850
Dilutive warrants 177,973 308,657 Basic weighted average number of shares in issue during the year 947,323 787,944 Weighted average number of ordinary share 1,164,979 1,134,451 Diluted profit/(loss) per share (cent) 0.30 (0.91)
There is a difference between the basic profit per ordinary share and the diluted profit per ordinary share for the current year. However, for the prior year all potentially dilutive ordinary shares outstanding are anti-dilutive in relation to continuing operations. There were 39,683,000 (2020: 37,850,000) anti-dilutive share options in issue at 31 December 2021. There were 177,973,004 (2020: 308,657,194) anti-dilutive warrants.
PROVIDENCE RESOURCES Plc
Note 9
Share options and warrants
The Group operates employee share schemes as follows:
2009 Scheme
In 2009, the directors adopted a share option scheme which contains share growth performance criteria. The option price is the market price immediately preceding the date of grant. The "2009 scheme" operates as an equity-settled share option scheme and the options are granted subject to the following conditions:
(i) 50% of total options granted are exercisable after one year from the date of grant provided that the market price of the Company's shares has increased by a minimum of 25% and has maintained such increase over a period of three months prior to the exercise of any option.
(ii) The remaining 50% of the total options granted are exercisable after two years from the grant date provided the market price of the Company's shares has increased by a minimum of 50% from date of grant and has maintained such increase over a period of three months prior to the exercise of any option.
At 31 December 2021, options over 3,850,000 (2020: 3,850,000) shares remained outstanding at subscription prices ranging from EUR0.14 to EUR0.17, with a weighted average price of EUR0.152 (2020: EUR0.152). These options expire at varying dates up to June 2024, with none exercisable at year end.
2020 Scheme
In 2020, the directors adopted a share option scheme which contains certain performance criteria. No options can be issued after 10 years of the scheme. The option price is the market price immediately preceding the date of the grant. The "2020 scheme" operates as an equity-settled share option scheme and the options granted are subject to certain conditions. No option is exercisable more than seven years after grant date and no option is exercisable within one year of grant.
During 2021, 18,000,000 share options were granted under the 2020 Share options scheme to directors.
The applicable criteria for the exercise of the options are;
(i) 33% of the total number of options granted are exercisable after one year of grant. (ii) 33% of the total number of options granted are exercisable after two years of grant.
(iii) The remaining 33% of the total number of options granted are exercisable after a further year has elapsed.
Grant Date 21 May 2021 18 August 2021 Number of options granted 9,000,000 9,000,000 Volatility 150% 98% Time period 7 years 7 years Dividend yield 0% 0% Risk free interest rate 0% 0% Exercise price EUR0.038 EUR0.046
PROVIDENCE RESOURCES Plc
Note 9
Share options and warrants (continued)
During the prior year, 36,500,000 share options were granted under the 2020 Share option scheme. Of that total, 31,500,000 options were granted to the then directors and 5,000,000 options were granted to employees.
The applicable criteria for the exercise of the options are;
(i) 33% of the total number of options granted are exercisable after one year of grant provided that the criteria agreed by the Remuneration committee have been met.
(ii) 33% of the total number of options granted are exercisable after two years of grant provided that the criteria agreed by the Remuneration committee have been met.
(iii) The remaining 33% of the total number of options granted are exercisable after a further year has elapsed provided that the criteria agreed by the Remuneration committee have been met.
Grant Date 13 January 2020 6 April 2020 Number of options granted 15,000,000 21,500,000 Volatility 103% 108% Time period 7 years 7 years Dividend yield 0% 0% Risk free interest rate (0.01%) (0.01%) Exercise price GBP0.04 GBP0.03
At 31 December 2021, the closing share price was EUR0.0376 resulting in 9,500,000 options being exercisable.
Charge
The share-based payment charge for the year was EUR338,000 (2020: EUR448,000 ).
Warrants
On 5 May 2020, the Company raised EUR3.1m by the issue of security instruments with each security instrument comprising one ordinary share, with a par amount of EUR0.001, one GBP0.03 warrant (expires in May 2021) and one GBP0.09 warrant (expires in May 2022). The fair value of the warrants was calculated using Black Scholes model. The following key input assumptions were applied to the initial valuation on issuance of these instruments:
GBP0.03 Warrants GBP0.09 Warrants
Number of warrants 177,973,004 177,973,004
Volatility 148% 148%
Time period 1 year 2 years
Dividend yield 0% 0%
Risk free interest rate (0.01%) (0.01%)
Exercise price GBP0.03 GBP0.09
Placing effective share
price 0.01068 0.01068
Initial value of security 0.00299 0.00349
Fair value EUR531,444 EUR621,982
PROVIDENCE RESOURCES Plc
Note 9
Share options and warrants (continued)
The EUR3.1m raised before expenses, from previous and new shareholder investors, for the security instruments in May 2020 was considered the transaction price fair value. The split of this fair value on issuance of these security instruments, based on a placing effective share price of EUR0.01068, was EUR0.531m for the GBP0.03 Warrants, EUR0.622m for the GBP0.09 Warrants and EUR1.901m for the Ordinary Shares (split between share capital and share premium account (note 6)).
During 2021, 86,061,529 of the GBP0.03 warrants were exercised. There were a number of warrant transactions exercised in each of the months before they expired on 6 May 2021. The key assumptions used in the calculation of their fair value at the exercise date are included in the table below. The weighted average closing price was used to reflect the number of transactions in each month.
January February March April May 21
21 21 21 21
Number of warrants 287,372 1,666,666 1,000,000 65,975,822 17,131,669
Volatility 135% 135% 135% 206% 208%
Time period 0.30 year 0.18 year 0.10 year 0.016 year 0.003 year
Dividend yield 0% 0% 0% 0% 0%
Risk free interest
rate (0.61%) (0.61%) (0.61%) (0.61%) (0.61%)
Exercise price GBP0.03 GBP0.03 GBP0.03 GBP0.03 GBP0.03
Weighted average
closing
share price EUR0.075 EUR0.075 EUR0.054 EUR0.0392 EUR0.038
Fair value EUR12,685 EUR71,219 EUR23,419 EUR439,557 EUR62,804
The fair value of the warrants exercised during the year is recognised in the movement of the warrant liability with a corresponding increase in share premium.
On 31 December 2021, the GBP0.09 warrants were fair valued using
appropriate inputs including the closing share price on that day
of EUR0.0376. The period of 18 months has been used for the volatility
calculation for the GBP0.09 warrants which expired on 6 May 2022.
The 4-month period for the GBP0.09 warrants was too short and would
distort the volatility calculation as it a key component when calculating
the fair value using Black Scholes. The fair value movement being
the difference between 31 December 2020 and 31 December 2021 valuation
in the amount of EUR6.253m is recorded as finance income in the Income
statement. No GBP0.09 options were exercised and all have now expired.
Warrants
GBP0.03 Warrants GBP0.09 Warrants
Number of warrants 0 177,973,004
Volatility 0% 144%
Time period Expired 0.35 years
Dividend yield 0% 0%
Risk free interest rate 0% (0.071%)
Exercise price GBP0.00 GBP0.09
Closing share price 31
December
2021 EUR0.0376 EUR0.0376
Fair value as at 31
December
2021 - EUR460,271
PROVIDENCE RESOURCES Plc
Note 9
Share options and warrants (continued)
During 2020, 47,288,814 of the GBP0.03 warrants were exercised. There
were a number of warrant of transactions exercised in each of the
months. The key assumptions used in the calculation of their fair
value at the exercise date are included in the table below. The weighted
average closing price was used to reflect the number of transactions
in each month.
------------------------------------------------------------------------------------------ -----------
September 20 October 20 December 20
Number of warrants 24,648,335 10,966,667 11,673,812
Volatility 125% 125% 125%
Time period 0.58 year 0.50 year 0.33 year
Dividend yield 0% 0% 0%
Risk free interest rate (0.6%) (0.6%) (0.6%)
Exercise price GBP0.3 GBP0.03 GBP0.03
Weighted average closing
share
price EUR0.07 EUR0.08 EUR0.06
Fair value EUR1,138,828 EUR557,901 EUR324,687
The fair value of the warrants exercised during the year is recognised as a finance expense of EUR2.021m in the income statement with a corresponding increase in share premium.
On 31 December 2020, the warrants were fair valued using appropriate inputs including the closing share price on that day of EUR0.055. The period of 18 months has been used for the volatility calculation for the GBP0.09 warrants which expired on 6 May 2022 and the GBP0.03 which expired on 6 May 2021. The 4-month period for the GBP0.03 warrants was too short and would distort the volatility calculation as it a key component when calculating the fair value using Black Scholes. The fair value movement being the difference between initial valuation and 31 December 2020 valuation in the amount of EUR5.56m is recorded as a finance expense in the Income statement.
GBP0.03 Warrants GBP0.09 Warrants
Number of warrants 130,684,190 177,973,004
Volatility 125% 125%
Time period .33 year 1.33 years
Dividend yield 0% 0%
Risk free interest rate (0.06%) (0.06%)
Exercise price GBP0.03 GBP0.09
Closing share price 31
December 2020 EUR0.055 EUR0.055
Fair value as at 31 December
2020 3,157,748 3,555,240
PROVIDENCE RESOURCES Plc
Note 9
Share options and warrants (continued)
The following table shows the fair value movement:
Number GBP0.03 Number GBP0.09
of of
warrants warrants warrants warrants Total
EUR'000 EUR'000 EUR'000
Initial valuation 177,973,004 EUR531 177,973,004 EUR622 EUR1,153
September 20 Exercised 24,648,335 EUR1,139 - - EUR1,139
October 20 Exercised 10,966,667 EUR558 - - EUR558
December 20 Exercised 11,673,812 EUR324 - - EUR324
Exercised fair
value 47,288,814 EUR2,021 - - EUR2,021
Fair value as at 130,684,190 EUR3,158 177,973,004 EUR3,555 EUR6,713
31 December 2020
Total 2020 fair
value
loss recognised
in the income statement
(see note 4) EUR4,648 EUR2,933 EUR7,581
January 21 Exercised 287,372 EUR13 - - EUR13
February 21 Exercised 1,666,666 EUR71 - - EUR71
March 21 Exercised 1,000,000 EUR23 - - EUR23
April 21 Exercised 65,975,822 EUR440 - - EUR440
May 21 Exercised 17,131,669 EUR63 - - EUR63
Exercised fair
value
movement recognised
in
the income statement 86,061,529 EUR610 - - EUR610
Fair value as at
31
December 2021 - - 177,973,004 EUR460 EUR460
Total fair value
gain
recognised in the
income
statement for the
period
to 31 December
2021 (EUR2,548) (EUR3,095) (EUR5,643)
PROVIDENCE RESOURCES Plc
Note 10
Related party transactions
The Group contracted NRG Well Management International Limited to carry out technical studies relating to Barryroe in 2021. The value of the work undertaken was EUR198,893 (2020: EUR14,305) and was procured on an arm's length basis. The balance outstanding as at 31 December 2021 was EUR177,564.
Andrew Mackay who is a non-executive Director of Providence Resources Plc, is Chairman and part owner of NRG.
AM O'Sullivan PR was engaged by the Group in 2021 to develop and coordinate a stakeholder management and communication strategy to improve the understanding of the Barryroe project. The amount paid under the contract in 2021 was EUR27,972 (2020: EURnil) procured on an arm's length basis. There was no balance outstanding as at 31 December 2021.
Ann-Marie O'Sullivan, who is a non-executive Director of Providence Resources Plc, is the owner of AM O'Sullivan PR Limited.
Note 11
Commitments
The Group has capital commitments of approximately EUR0.183 million in respect of its share of costs of exploration and evaluation and appraisal activities to be incurred in 2022 However and subject to the timing of the Barryroe Lease Undertaking grant then the Group could have additional commitments of EUR1.3m for 2022 which comprise two years of Lease Undertaking fees (backdated to July 2021).
Note 12
Post Balance Sheet Events
On 6 May 2022, the 177,973,004 remaining GBP0.09 warrants expired. The warrants were issued as part of the fund raising in May 2020. No GBP0.09 warrants were exercised.
In June 2022, the Company raised gross proceeds of $1.8 million (equivalent to approximately STGGBP1.5 million) through the subscription for 45,312,316 Placing Securities and 51,686,693 Subscription Securities (each of which shall comprise one New Ordinary Share and one STG1.5p Warrant).
The total of 96,999,009 New Ordinary Shares have been issued pursuant to the Fundraising, representing less than 10 per cent of the Company's issued Ordinary Share Capital. In addition 96,999,009 warrants ("the STG 1.5p Warrants") will be issued to Placees and Subscribers. The allotment and issue of the Warrants is subject to and conditional upon the passing of certain resolutions in relation to the Warrants (the "Warrant Resolutions") at the AGM by the requisite number of shareholders as required pursuant to the Companies Act (the "Warrant Condition"). If the Warrant Condition is not satisfied, the Warrants will not be issued to the Placees and Subscribers. The issue of the Placing Shares and Subscription Shares is not conditional on the passing of the Warrant Resolutions.
On issue, the Warrants will entitle holders to subscribe for one new Ordinary Share for each Warrant held at an exercise price of STGGBP0.015 per Ordinary Share at any time for a period of 12 months following the date of satisfaction of the Warrant Condition.
There have been no other significant events since the balance sheet date which would require disclosure in or amendment of these financial statements apart from the above.
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