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Providence Resources operating loss rises

By BFN News | 09:07 AM | Wednesday 29 June, 2016


Providence Resources (PVR) said full-year operating loss rose to €13.080 million, up from €6.463 million in 2014. 2015 OPERATIONAL HIGHLIGHTS Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11) - Farm out discussions continued - Two year extension for the first phase of SEL 1/11 to July 2017 and an extension to second phase to July 2019 - Area of SEL 1/11 increased by c.118km⊃ to accommodate mapped potential extensions of Barryroe, formerly located within LO 12/4, which has now expired - Assessed separate fast-track development options of the highly productive C-Sand gas bearing reservoir Offshore Petroleum Lease 1 (OPL 1) South Option, North Celtic Sea Basin - Option with PSE Kinsale Energy for a right to earn a 60% working interest in southern portion of OPL 1 exercisable for a three year period - Option is earned through the 100% financing and drilling of an exploration well - Based on mapping, this area has the potential to host significant incremental resources Spanish Point Gas Condensate Project, Northern Porcupine Basin (FEL 2/04 and 4/08) - Acquired Chrysaor E&P Ireland Limited which increased the company's working interest in Spanish Point licences (FEL 2/04 and FEL 4/08) from 32% to 58% and FEL 1/14 from 32% to 43% - HIIP of c. 730 MMBOE and combined contingent plus prospective recoverable resources of up to 337 MMBOE - Farm out campaign launched in October 2015 Dunquin Oil Prospect, Southern Porcupine Basin (FEL 3/04) agreed to acquire Atlantic Petroleum (Ireland)'s 4% working interest in FEL 3/04 increasing the company's working interest to 20%. Druid/Drombeg Oil Prospects, Southern Porcupine Basin (FEL2/14) - Major post 3D seismic analysis carried out; 3D seismic morphologies consistent with large stacked lower Cretaceous and Paleocene deep-water fan systems at Drombeg and Druid - Apparent depth consistent Class II AVO responses noted on both fan systems - Large deeply buried pre-Cretaceous Diablo Ridge presence confirmed 2015 FINANCIAL HIGHLIGHTS - Loss of €24.137 million versus €11.489 million in 2014 - Loss per share of 19.57 cents versus 17.77 cents in 2014 - As of December 31, 2015, total cash and cash equivalents were €6.518 million versus €8.552 million (2014, includes restricted cash of €3.296 million) POST YEAR-END PROGRESS Barryroe Oil Project, North Celtic Sea Basin (SEL 1/11) - Farm out discussions continue with a number of counterparties - Upper C-Sand GIIP within SEL 1/11 & OPL1 Option area now estimated at c. 400 BSCF - Latest well cost estimates for single vertical well c. $25 million - Court of Appeal overturns one aspect of 2014 Commercial Court Judgment in relation to Transocean litigation Druid/ Drombeg Oil Prospects, Southern Porcupine Basin (FEL 2/14) - Multi-domain analysis confirms that the 3D seismic responses from the Druid and Drombeg prospects are consistent with the presence of 2 large vertically stacked stratigraphically trapped oil accumulations - Total cumulative in-place un-risked prospective resources of c. 5.095 BBO (PMean) - Adjacent third party licensing options awarded in 2015 Atlantic Margin Licensing Round - Drilling of Druid planned for summer 2017 Avalon Oil Prospect, LO 16/27) - Award of new licensing option in 2015 Atlantic Margin Licensing Round Spanish Point Gas Condensate Project, Northern Porcupine Basin (FEL 2/04) - Farm out campaign continues - Adjacent third party licensing options awarded in 2015 Atlantic Margin Licensing Round Dunquin Oil Prospect, Southern Porcupine Basin (FEL 3/04) - Dunquin North post-well technical studies continuing - Evidence of more significant residual oil in the Dunquin North well - Adjacent third party licensing options awarded in 2015 Atlantic Margin Licensing Round Newgrange Prospect, Goban Spur Basin (FEL 6/14) - Seismic supports top seal and reservoir presence for Cretaceous target pre-Cretaceous structural closure far larger than previously mapped - Adjacent third party licensing options awarded in 2015 Atlantic Margin Licensing Round Kish Oil Prospect, Kish Bank Basin (SEL 2/11) - The company's working interest increased to 100% Helvick/Dunmore Oil Discoveries North Celtic Sea Basin - Award of lease undertakings - 50% staged farm in by Marginal Field Development Ruadhan Prospect, Northern Porcupine Basin (FEL 1/14) - Recently acquired 3D seismic data confirm the presence of a large base Cretaceous structural closure - Relinquishments made to Licence Authorisations over Cuchulain, Southern Porcupine Basin (FEL 1/99), Polaris, Rathlin Basin (P 1885), Dragon (UK), St George's Channel Basin (P 1930) POST YEAR-END FINANCIALS - Capital fundraising announced on June 21, 2016 to raise gross proceeds of £53.712 million, comprising: Proposed issuance of 399.670 million shares in a placing offer at £0.12 per share Proposed allotment of 9.938 million shares to Melody at £0.12 per share Proposed issuance of 37.998 million shares to Cenkos at £0.12 per share Open offer of 31.835 million shares at €0.152 per share to raise up to a gross amount of €4.839 million Capital fundraising subject to ratification at the EGM on July 14, 2016 Proceeds from capital fundraising proposed to be used to retire corporate debt, make payment to Transocean, provide working capital and finance the Company's cost of drilling the Druid exploration well. At 9:07am: (LON:PVR) Providence Resources PLC share price was 0p at 12p Story provided by StockMarketWire.com

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