Providence Announces 1H 2013 Results (Ireland)

Providence Announces 1H 2013 Results (Ireland)

Providence Resources P.l.c., the Irish oil and gas exploration and appraisal company, whose shares are quoted in London (AIM) and Dublin (ESM), announces its interim results for the half year ended 30th June 2013.

OPERATIONAL HIGHLIGHTS

– Barryroe Oil Field, Celtic Sea

o Publication of NSAI Competent Person’s Report

– 2C Recoverable Resources of 346 MMBOE

– 311 MMBO & 207 BCF gas in solution (or 34.5 MMBOE)

– 2C Financials (after tax) attributable to Providence

– Net contingent cash-flow of $10.6 billion

– NPV 10% of $2.6 billion

o Farm out process ongoing

– Rothschild managing the process, with significant industry interest

o Underlying Upper Jurassic potential confirmed in adjacent operated acreage

– Dunquin, South Porcupine Basin

o Completion of drilling of Dunquin North well

– 144’ residual oil column interpreted in high porosity over-pressured massive carbonate reservoir system

– Water confirmed as mobile fluid phase

– New petroleum play system confirmed

– Application made to extend second phase of Dunquin Frontier Exploration Licence by 12 months to November 2014

– Spanish Point, Main Porcupine Basin

o Farm in by Cairn Energy Plc who assume an operated 38% equity interest

o Rig confirmed for 2014 appraisal drilling

– Blackford Dolphin semi-submersible drilling rig expected April 2014

– Application made to convert Licencing Option 11/2 into an exploration licence with 3D seismic surveying offered as the forward work programme

– Southern Porcupine Basin

o Application made to convert Drombeg Licence Option 11/9 into an exploration licence with 3D seismic surveying offered as the forward work programme

o Application made to convert Repsol operated Newgrange Licence Option 11/11 into an exploration licence with 2D seismic surveying offered as the forward work programme

FINANCIAL HIGHLIGHTS

– Sale of Onshore UK assets for $66 million

o Repayment of all corporate debt

– Profit of €1.328 million for the half year

o Includes one-time gain of €6.095 million from sale of UK assets

Commenting on activity during the first half of 2013 and ongoing operations, Tony O’Reilly, Chief Executive of Providence Resources P.l.c., said:

“Following the truly transformational year of 2012, the first half of 2013 continued with a high level of activity. The main focus of our activities remained the ongoing post well work at Barryroe, the independent audit of resources and the launch of our industry wide Barryroe farm out campaign.

“The publication of the two Netherland Sewell & Associates, Inc. (NSAI) independent audits earlier this year further substantiated the scale of Barryroe and also helped to redefine the industry view of the Irish offshore and its potential. As planned, we are now actively engaged in a farm out process, which involves bringing in a suitably qualified partner to advance the project from development to first oil. The Company is very pleased with the level of international industry interest in Barryroe received to date.

“Aside from Barryroe, we continue with the necessary preparatory work on the remaining four wells being planned as part of our multi-basin drilling programme. The next well to be drilled is the Cairn operated Spanish Point appraisal well, which is currently scheduled take place early in the second quarter of 2014.

“Whilst in the short-term, the absence of mobile hydrocarbons in the Dunquin North well was received negatively by the stock market, we believe that the evidence for oil generation and entrapment in the southern Porcupine Basin may well provide much greater sustainable value for our shareholders in the longer term. It is also important to remember that this well, being the first in the basin, was always a high risk exploratory venture. The fact that we were able to confirm the presence of a new working petroleum system is very encouraging and which has, without doubt, caught the attention of the international E&P sector.

“In addition, the recently announced oil discoveries in the Flemish Pass Basin offshore Canada, which were once geologically on-trend with the southern Porcupine Basin, have only served to further highlight the oil potential of this area. As the largest acreage holder in the southern Porcupine Basin, we are very well positioned to capitalise on this growing industry interest in one end of what has been termed the ‘North Atlantic source rock superhighway’.

“Much has been said of late about the renaissance of the Irish offshore, and the arrival of new entrants such as Cairn Energy, Woodside and Kosmos only serves to augment this very positive environment. However, more drilling needs to be carried out as there are still too few wells being drilled offshore Ireland – averaging only one a year. Providence takes pride that, as an Irish independent, through its multi-basin drilling programme, we are leading the charge: the only new exploration and appraisal wells drilled offshore Ireland in 2012 and 2013, and being planned for 2014, are on Providence originated projects.

“As the most active company offshore Ireland, partnership has always been a key part of Providence’s strategy, and having successfully completed various farm outs, today we work with an array of notable co-venture companies, including ExxonMobil, ENI, PETRONAS, Repsol, Chrysaor, First Oil Expro, Sosina, Lansdowne and Atlantic Petroleum. This year, we were very pleased to welcome Cairn Energy Plc into our Spanish Point consortium after it acquired a 38% equity stake and assumed the role of Operator. All of our partners bring both technical capabilities and financial support which allow us to move forward with our extensive programme of exploration and appraisal drilling activities.

“Providence has always believed in the material hydrocarbon prospectivity offshore Ireland and the results from Barryroe and Dunquin North, together with the recent results in the conjugate Flemish Pass Basin, continue to endorse this view. We remain committed to our programme of drilling, whilst also leveraging relevant industry farm in partners to take our asset portfolio through the development phase to production. The decision by us and our partners to elect to move from licensing options to exploration licences also further validates the emergence of the Irish Atlantic Margin as a highly prospective, world class oil and gas province.”

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Press Release, September 30, 2013