Friday 21 September 2018

Providence Resources P.l.c., the Irish based Oil & Gas Exploration Company, provided a commercial update on Standard Exploration Licence (“SEL”) 1/11 that contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC (80%), a wholly-owned Providence subsidiary, on behalf of its partner, Lansdowne Celtic Sea Limited (20%). The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Binding Barryroe Farm-Out with APEC

Further to the RNS announcement of March 28, 2018 regarding the signing of a Farm-Out Agreement (“FOA”) with APEC Energy Enterprises Limited, the Company confirmed that, following the completion of all required ancillary documentation and the receipt of both governmental consents, EXOLA, Lansdowne and APEC (collectively referred to as the “Barryroe Partners”) have signed an amended and restated Farm-Out Agreement which assigns 50% equity in SEL 1/11 to APEC.

Summary of Updated FOA Terms & Conditions

The Updated FOA provides for a fully cost-carried firm programme comprising of the drilling and testing of four vertical wells and one horizontal sidetrack (collectively the “Drilling Programme”), plus the optional drilling of two additional horizontal wells, together with cash advances to EXOLA for certain agreed project and operational costs such as well site survey acquisition totaling $19.5 million.

Full announcement