PROVIDENCE RES. Providence Resources P.L.C - Commercial Update Frontier Exploration Licence 2/14 Exclusive Option
June 07 2017 - 1:00AM
UK Regulatory
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: +353 1 219 4074
Tony O'Reilly, Chief Executive Officer
Cenkos Securities plc Tel: +44 131 220 9771
Neil McDonald/Derrick Lee
J&E Davy Tel: +353 1 679 6363
Anthony Farrell
MEDIA ENQUIRIES
Powerscourt Tel: +44 207 250 1446
Lisa Kavanagh/Peter Ogden
Murray Consultants Tel: +353 1 498 0300
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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