Providence Resources P.l.c. - Interim Results for the Half Year Ended 30th June 2014

30 September 2014
Embargo: 7am

PROVIDENCE RESOURCES P.l.c.
("Providence", "PVR" or the "Company")
Interim Results for the
Half Year ended 30th June 2014

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 30 June 2014.

OPERATIONAL HIGHLIGHTS

APPRAISAL ASSETS

Barryroe Oil Field, North Celtic Sea Basin (PVR 80%)

• Farm out negotiations are at an advanced stage, including planning for 2015 appraisal/ pre-development drilling
• Increase in the area of SEL 1/11 by c. 160 km² through a licence extension
• Transfer of Operatorship to EXOLA Limited, a wholly owned subsidiary of Providence
• Extension of SEL 1/11 and LO 12/4 by one year

Spanish Point Gas Condensate Field, Northern Porcupine Basin (PVR 32%)

• Appraisal drilling to be carried out on Spanish Point in 2015, targeting up to 200 MMBOE REC
  • Rig procurement being carried out by the Operator, Cairn Energy Plc
  • In accordance with its original farm-out agreement with Chrysaor, Providence has a capped exposure of up to $20 million on drilling

Dragon Gas Project, St George's Channel (PVR 100%)

• 3D Pre-Stack Depth Migration ("PSDM") seismic reprocessing nearing completion
• Ongoing work with UK/Irish government regulators on potential field development, including the consent process for the drilling of a development well
• Consultants appointed to work on DICE (Dragon Interconnector) system, which is evaluating the potential for a new utility interconnector between Ireland and the United Kingdom

EXPLORATION ASSETS

Dunquin North & South Oil Prospects, Southern Porcupine Basin (PVR 16%)

• Dunquin North post-well analysis now complete 
  • c. 150' residual oil column encountered in massive over- pressured high porosity carbonate reservoir system
  • Pre-breach oil STOIIP - c. 1.2 BBOE
  • Current residual oil STOIIP - c. 600 MMBOE

• Dunquin South - un-risked Pmean prospective resources
  • Hydrocarbons in place - 3.475 BBOE
  • Recoverable - 1.389 BBOE
  • GPOS - 10%

Cuchulain Oil Prospect, Southern Porcupine Basin (PVR 5%)

• Incorporation of 44/23-1 Dunquin North well data into subsurface geological modelling
• Newly processed 3D seismic being interpreted

Drombeg Oil Prospect, Southern Porcupine Basin (PVR 80%)

• Conversion of Drombeg Licensing Option 11/9 into Frontier Exploration Licence 2/14
• Completed acquisition of 3D seismic survey over the Drombeg prospect (as part of the Polarcus multi-client 2014 programme) with initial results expected by the end Q1 2015

Newgrange Oil Prospect, Goban Spur Basin (80%)

• Conversion of Newgrange Licensing Option 11/11 into Frontier Exploration Licence  6/14
• Completion of 2D seismic survey over the Newgrange prospect (as part of the Polarcus/ Seabird's multi-client 2014 programme) with initial results expected in Q1 2015

Spanish Point South, Oil/Gas Prospects, Northern Porcupine Basin (PVR 32%)

• Conversion of Licencing Option 11/2 south of Spanish Point into Frontier Exploration Licence 1/14
• Completed acquisition of 3D seismic survey in FEL 1/14 with initial results expected in Q1 2015
• Latest resource estimates of 250 MMBOE  REC (excluding Spanish Point Project and other prospects contained within FEL's 2/04 and 4/08)

Silverback Oil Prospect, South Celtic Sea Basin (PVR 100%)

• Ongoing seismic interpretation, mapping and volumetrics for this significant mid-basinal Mesozoic anticlinal closure

Polaris Oil Prospect, Rathlin Basin (PVR 100%)

• Five anomalies have been identified, based on Full Tensor Gradiometry (FTG) Data, with the Polaris oil prospect in the Rathlin Sound high-graded as the main exploration target
• Polaris is geologically on-trend with the recent Ballinlea-1 oil discovery onshore Northern Ireland
• A further Ballinlea oil appraisal well, with EWT programme, is planned for Q1 2015 by Rathlin Energy, the results of which should significantly de-risk the Polaris prospect, in advance of drilling

Kish Bank Oil Prospect, Kish Bank Basin (PVR 50%)

• Ongoing work with regulators on the consent to acquire seismic and the drilling of an exploration well on the Kish Bank oil prospect

All planned drilling, site and seismic activities are based on relevant permit requirements and appropriate equipment availability/procurement.

FINANCIAL HIGHLIGHTS

• Operating loss for the period of €3.016 million compared to a loss of €3.335 million in H1 2013
• Net loss for the period of €3.374 million compared to a profit of €1.328 million in H1 2013, (2013 results included a net credit of €4.971 million attributed to the profit from the sale of the UK onshore operations (net of income tax)
•  Loss per share from continuing operations of 5.22 cents compared to a loss of 5.65 cents in H1 2013
• In June 2014, the Company entered into and drew down two loan facilities for general working capital totaling US$ 24 million with Melody Business Finance LLC, a US based financial provider
• At 30 June 2014, cash and cash equivalents were €18.040 million

Commenting on the Company's operations, Tony O'Reilly, Chief Executive of Providence, said:

"We have had another busy period so far this year. As we stated at our Annual General Meeting last month, the Barryroe farm out remains our main priority. Negotiations are now at an advanced stage and we are working hard to satisfactorily conclude this with the objective to return cash to the business and obtain capital funding, whilst also ensuring that Providence retains a material stake in Barryroe, with a clearly defined road map for the timely drilling (2015) and development of the field.

"In addition to our work to finalise the Barryroe farm out, our drilling plans for 2015 are also advancing well across the portfolio: our Spanish Point partners are currently seeking a rig for the 2015 drilling, which is targeting up to 200 MMBOE REC; appraisal drilling by a third party operator on the onshore part of the Rathlin Basin, which offsets our offshore Polaris oil prospect, is currently planned for Q1 2015,  which we believe will have a significant impact on the future drilling prospects of Polaris; our shallow water, high potential, Kish Bank oil prospect, offshore Dublin, is technically drill-ready and we are continuing to pursue the required consents to proceed with operations on this exciting prospect; and  we have discussed a phased development approach of the Dragon gas field with both UK and Irish regulators and are currently carrying out 3D PSDM seismic reprocessing to pave the way for the future drilling and ultimate development of the field. A separate piece of work is also being carried out on the evaluation of the DICE (Dragon Interconnector) system, where we are looking at the feasibility of a new south east utility interconnector between Ireland and the United Kingdom.

"In 2013, the Dunquin North exploration well confirmed the presence of an active oil-prone petroleum system, which has opened up the petroleum prospectivity of the southern Porcupine Basin in general, and the Dunquin South and Drombeg prospects, in particular. Post well analysis of the Dunquin North well confirms that the well intersected a c. 150' residual oil column, in massive over- pressured high porosity carbonate reservoir system. The analysis confirms the Dunquin North pre-breach oil STOIIP of c. 1.2 BBOE, with current estimated residual oil STOIIP of c. 600 MMBOE. These data have been used to determine updated volumetrics for Dunquin South, located some 25 kilometres miles from Dunquin North. The un-risked prospective Resources (Pmean) for Dunquin South are now estimated to be 3.475 BBOE hydrocarbons in place, with estimated recoverable resources of 1.389 BBOE.

"The Atlantic Margin area remains a key focus area for the Company and, during the period, we further consolidated our leading acreage position in this region with the conversion of the Spanish Point South, Drombeg and Newgrange Licensing Options into Frontier Exploration Licences. During the summer, we followed this up by participating in three new major seismic acquisition programmes off the west coast, over the Drombeg, Spanish Point South and Newgrange areas, all which were operated on time and within budget. We look forward to receiving the processed results from these surveys in the coming months which should put the company in a commanding position with regard to the upcoming Irish Atlantic Margin licensing round.

"We will continue, on behalf of our shareholders, to identify and realise the potential that exists offshore Ireland and we look forward to providing updates on our activities during the weeks and months ahead".

CONFERENCE CALL

A conference call for investors and analysts will be held at 9am BST today, Tuesday, 30 September.

Please see below details for the call:

• Ireland Local Dublin: +353 (0) 1 436 0959
• Standard International Access: +44 (0) 20 3003 2666
• UK Toll Free: 0808 109 0700
• Password: Providence

To view the presentation sides, please go to www.meetingzone.com/presenter?partCEC=8965058 and use the following PIN: 8965058

REPLAY DETAILS

Replay for 7 days - +44 (0) 20 8196 1998; Pin: 8965058

TERMS USED IN THIS ANNOUNCEMENT
MMBO - Million Barrels of Oil
MMBOE - Million Barrels of Oil Equivalent
BBOE - Billion Barrels of Oil equivalent
BCF - Billion Cubic Feet of Gas
REC - Recoverable
STOIIP - Stock Tank Oil initially in Place
GPOS - Geological Possibility of Success
PSDM - Pre Stacked Depth Migration
Pmean - The Pmean value is the average of the numbers: a calculated "central" value of a set of numbers.

ABOUT PROVIDENCE
Providence Resources Plc is an Irish based oil & gas company with a portfolio of appraisal and exploration assets offshore Ireland and the U.K. The Company is currently leading a circa $500 million multi-year drilling programme on a number of exploration/development wells over 6 different basins offshore Ireland, representing the largest drilling campaign ever carried out offshore Ireland www.providenceresources.com.

ANNOUNCEMENT
This announcement has been reviewed by John O'Sullivan, Technical Director, Providence Resources P.l.c. John holds a B.Sc. in Geology from University College Cork, Ireland, a M.Sc. in Applied Geophysics from the National University of Ireland, Galway and a M.Sc.in Technology Management from The Smurfit School of Business at University College Dublin. John has worked in the offshore business for over 25 years and is a fellow of the Geological Society of London and member of The Petroleum Exploration Society of Great Britain. Definitions in this press release are consistent with SPE guidelines. He has recently completed a PhD dissertation at Trinity College, Dublin.

SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in preparing this announcement.

PROVIDENCE RESOURCES P.l.c.
Condensed consolidated income statement
For the 6 months ended 30 June 2014

PROVIDENCE RESOURCES P.l.c.
Consolidated statement of comprehensive income
For the 6 months ended 30 June 2014

The total recognised expense for the period is entirely attributable to equity holders of the Company.

PROVIDENCE RESOURCES P.l.c.
Consolidated statement of financial position
As at 30 June 2014

PROVIDENCE RESOURCES P.l.c.
Consolidated statement of changes in Equity
For the 6 months ended 30 June 2014

PROVIDENCE RESOURCES P.l.c.
Consolidated statement of cash flows           
For the 6 months ended 30 June 2014

PROVIDENCE RESOURCES P.l.c.
Note 1
Operating segments

PROVIDENCE RESOURCES P.l.c.
Note 2
Discontinued Operations

Gain on sale of discontinued operations - UK disposal

PROVIDENCE RESOURCES P.l.c.
Note 3
Finance Expense

PROVIDENCE RESOURCES P.l.c.
Note 4
Exploration and evaluation assets

PROVIDENCE RESOURCES P.l.c.
Note 5
Share Capital and Share Premium

PROVIDENCE RESOURCES P.l.c.
Note 6
Loans and Borrowings

In June 2014, the Group entered into two short term loan facilities with Melody Finance for $20 million and $4 million. The facilities mature in 1 June 2015. The facilities are secured over the assets of the Group via a floating charge.

PROVIDENCE RESOURCES P.l.c.
Note 7
Earnings per share

There is no difference between the loss per ordinary share and the diluted loss per share for the current period as all potentially dilutive ordinary shares outstanding are anti-dilutive.

PROVIDENCE RESOURCES P.l.c.
Note 8
Related party transactions

1. Mr. Tony O'Reilly Jnr, has through Kildare Consulting Limited, a company beneficially owned by him, renewed a contract for the provision of service to the company outside the Republic of Ireland effective 1 September 2013. The amount paid under the contract from 1 January to 30 June 2014 was €222,525.
2. The contract referred to in Note 8 (a) above is of two years duration and is subject to one year's notice period.

PROVIDENCE RESOURCES P.l.c.
Note 9
Commitments

As at 30 June 2014, the Group has capital commitments of approximately €19.9m to contribute to its share of costs of exploration and evaluation activities over the next 12 months.

  30 SEPTEMBER 2014

LIST OF ASSETS