PROVIDENCE RES. Providence Resources P.L.C.: Licensing Option 16/27 - Southern Porcupine Basin
October 18 2017 - 1:00AM
UK Regulatory
TIDMPVR
Licence Update
Licensing Option 16/27
Southern Porcupine Basin
-- COMPLETION OF FARM-IN WITH TOTAL
-- MINISTERIAL APPROVAL FOR ASSIGNMENT OF 50% EQUITY AND OPERATORSHIP OF
LICENSING OPTION 16/27 TO TOTAL
Dublin and London - October 18, 2017 - Providence Resources P.l.c. (PVR
LN, PRP ID), the Irish based Oil and Gas Exploration Company, provides
an update on Licensing Option ("LO") 16/27. Providence is pleased to
confirm that the agreed farm-in by TOTAL E&P Ireland B.V. ("TOTAL"), a
wholly owned subsidiary of TOTAL S.A. has now completed. This follows
approval of the Minister of State at the Department of Communications,
Climate Action and Environment to the transfer of 50% equity and
Operatorship of LO 16/27 (Avalon) to TOTAL.
In June 2017, Providence announced (RNS June 7, 2017) that Providence
and Sosina Exploration Limited ("Sosina") had signed a Farm-in Agreement
("FIA") with TOTAL whereby TOTAL will take a 50% working interest and
Operatorship in LO 16/27, subject to Ministerial approval. Under the
terms of the FIA, TOTAL:
-- Pays its pro-rata share of past gross costs of c. US$ 0.175 million
-- In addition to its pro-rata share, pays 21.4% of the past and future
costs during the 2-year term of LO 16/27, subject to a gross cost cap of
US$ 1.33 million
-- In the event that the JV partners agree to convert LO 16/27 into a
Frontier Exploration Licence, and a subsequent decision is taken to drill
an exploration well, TOTAL will pay 60% of the drilling costs, subject to
a gross well cap of US$ 42 million
With the farm-in now completed, the revised equity in LO 16/27 is TOTAL
(Operator - 50%), Providence (40%) and Sosina (10%).
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.
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 (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
October 18, 2017 02:00 ET (06:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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