Friday 30 November 2018

Providence Resources P.l.c., the Irish based Oil & Gas Exploration Company, provided an update on the planned well site survey operations over Standard Exploration Licence (“SEL”) 1/11 that contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC (40%), a wholly-owned Providence subsidiary, on behalf of its partners, APEC Energy Enterprises Limited (50%) and Lansdowne Celtic Sea Limited (10%). 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.

Voluntary Decision Not to Act on Well Site Survey Permit

Following an application for judicial review by An Taisce, taken against the Minister of Communications, Climate Action and Environment and the Attorney General, challenging the legality of the permission granted to EXOLA to conduct well site survey operations at Barryroe, and subsequent discussions with EXOLA’s legal advisers, a decision has been taken by EXOLA and its partners not to act on the well site survey permission with immediate effect. EXOLA has advised the Department of Communications, Climate Action and Environment ("DCCAE") of this decision.

Background - Well Site Survey Operations

On September 20, 2018, the Company announced its plans to conduct well site survey operations in preparation for its future drilling programme at Barryroe, subject to regulatory consent. The permission for the well site survey operations was granted to EXOLA on October 8, 2018 by the Minister, with the commencement of operations scheduled to be carried out in Q4 2018 using Gardline’s “Ocean Observer” vessel.

Background - Legal Proceedings

On November 15, 2018, the Company was notified that An Taisce issued legal proceedings on November 12, 2018 against the Minister and the Attorney General (with EXOLA as a notice party) regarding the issuance of the permission for EXOLA to conduct well site survey operations at Barryroe. Specifically, in its application, An Taisce sought to challenge by way of Judicial Review the process by which permission for the well site survey operations had been granted by the Minister, as well as raising other issues relative to environmental assessment and compliance with EU law. The matter initially came before the court on November 20, 2018 but was adjourned by Mr. Justice Noonan until December 11, 2018.

Postponement of Site Survey

As a result of this voluntary decision not to act on the site survey permission, EXOLA has postponed the planned well site survey for Q4 2018 and will now apply to the Minister for a new permission to carry out well site survey activities as early as practicable in 2019, in advance of its drilling programme at Barryroe which is being scheduled for later in 2019. Without prejudice to the site survey application process, EXOLA is planning to be in a position to conduct its well site survey operations in spring 2019 in advance of the commencement of the planned drilling operations in Q3 2019, such drilling operations being subject to the requisite approvals and consents from the Minister.