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Annual General Meeting – Providence Resources, Inc.

Providence Resources, Inc. · Aug 1, 2014 · 88 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Annual General Meeting – Providence Resources, Inc. – slide 1
    Providence Resources P.l.c. Annual General Meeting August 26th, 2014 Hilton Hotel Dublin, Ireland
  2. Annual General Meeting – Providence Resources, Inc. – slide 2
    INTRODUCTION Brian Hillery 2 Chairman
  3. Annual General Meeting – Providence Resources, Inc. – slide 3
    Agenda RESOLUTIONS HIGHLIGHTS OPERATIONAL UPDATE OUTLOOK Q & A SESSION 3
  4. Annual General Meeting – Providence Resources, Inc. – slide 4
    AGM Resolutions Resolutions (1) To receive and consider the Directors Report and Financial Statements for the year ended 31 December, 2013 (2) (a) To re-elect Mr. John OSullivan as a Director (b) To re-elect Mr. Tony OReilly as a…
  5. Annual General Meeting – Providence Resources, Inc. – slide 5
    Highlights 2013/14 BARRYROE Publication of NSAI Competent Persons Report Increase in area of SEL 1/11 & Change of Operatorship Commencement of farm out process DUNQUIN Completion of drilling of Dunquin North well FARM OUTS Farm in…
  6. Annual General Meeting – Providence Resources, Inc. – slide 6
    OVERVIEW Tony OReilly 6 Chief Executive
  7. Annual General Meeting – Providence Resources, Inc. – slide 7
    BRIEF HISTORY OF THE IRISH OFFSHORE 7
  8. Annual General Meeting – Providence Resources, Inc. – slide 8
    The Irish E&P Sector Large Area 8
  9. Annual General Meeting – Providence Resources, Inc. – slide 9
    Ireland The Irish Offshore Resource Potential Large Potential Irelands offshore basins are highly prospective but under-explored Assessments indicate a Yet to Find Reserve potential of c. 10 billion barrels of oil equivalent on…
  10. Annual General Meeting – Providence Resources, Inc. – slide 10
    Ireland The Irish -Offshore Conjugate Margins Large Potential 10
  11. Annual General Meeting – Providence Resources, Inc. – slide 11
    Ireland The Irish E&P Track Record Sector History 158 wells drilled over the past 45 years Majority of these wells were drilled in the 1970s/1980s High proportion intersected hydrocarbons, but only 4 commercial gas fields: Kinsale…
  12. Annual General Meeting – Providence Resources, Inc. – slide 12
    Ireland Well Database Exploration and Appraisal Wells (1970 2013) Exploration wells: 130 Appraisal wells: 28 Total: 158 (43 exploration wells west of Ireland) 12
  13. Annual General Meeting – Providence Resources, Inc. – slide 13
    Ireland Well Database 13
  14. Annual General Meeting – Providence Resources, Inc. – slide 14
    WHAT HAS CHANGED 14
  15. Annual General Meeting – Providence Resources, Inc. – slide 15
    The Irish E&P Sector TECHNOLOGY INFRASTRUCTURE PRICING FISCAL REGIME 15
  16. Annual General Meeting – Providence Resources, Inc. – slide 16
    Ireland Seismic Database Technology 66% of 2D seismic surveys 2% of 3D seismic surveys acquired offshore Ireland are pre-1990 vintage To 31 Mar 2014 16
  17. Annual General Meeting – Providence Resources, Inc. – slide 17
    Ireland Seismic Technology Acquisition Seismic Acquired 17
  18. Annual General Meeting – Providence Resources, Inc. – slide 18
    North Celtic Technology Sea Seismic New Basin Acquisition Deep Exploration Some Recent Activity (2010-2014) Providence - 3D seismic in Celtic Sea (Barryroe) Kosmos - 3D seismic in Porcupine Fastnet - 3D seismic in Celtic Sea…
  19. Annual General Meeting – Providence Resources, Inc. – slide 19
    Ireland Gas Infrastructure Infrastructure Gas supply delivered via a network of c. 13,150km of pipelines 2,380km of high pressure sub-sea and cross- country transmission pipe 10,750km of lower pressure distribution pipe connecting…
  20. Annual General Meeting – Providence Resources, Inc. – slide 20
    Infrastructure Kinsale Infrastructure Whitegate Oil Refinery 20 Corrib Infrastructure Bantry Bay Oil Storage Facility
  21. Annual General Meeting – Providence Resources, Inc. – slide 21
    FISCAL REGIME 21
  22. Annual General Meeting – Providence Resources, Inc. – slide 22
    Fiscal Regime 2014 Terms New Terms - Announced on June 18th, 2014 Different calculation methodology than previous terms, with a maximum state take of 55%, (depending on individual field size/profitability) Imposed on new licences to…
  23. Annual General Meeting – Providence Resources, Inc. – slide 23
    Commodity Pricing 23
  24. Annual General Meeting – Providence Resources, Inc. – slide 24
    RECENT DEVELOPMENTS 24
  25. Annual General Meeting – Providence Resources, Inc. – slide 25
    Noteworthy recent activity CELTIC SEA BASIN 3D seismic acquired over Barryroe (2011) Drilling/testing of the Barryroe oil field (2011/2012) 3D seismic by Lansdowne (2011) and Fastnet (2013) SOUTHERN PORCUPINE BASIN 2D acquired in…
  26. Annual General Meeting – Providence Resources, Inc. – slide 26
    Some ofinternational Growing the Playersinterest 26
  27. Annual General Meeting – Providence Resources, Inc. – slide 27
    Ireland Licensing More licence activity 50 Number of Offshore Exploration Licences and Licensing Options at end-December each year (1970 - March 2014) 45 Exploration Licences End of year information for Licensing Options Licensing…
  28. Annual General Meeting – Providence Resources, Inc. – slide 28
    Ireland Licensing Highest levels of licence activity January 2011 March 2014 28
  29. Annual General Meeting – Providence Resources, Inc. – slide 29
    Providence is at the centre of Irish offshore activity EXPLORE, APPRAISE AND DEVELOP IRISH OFFSHORE PORTFOLIO - Mixture of exploration prospects & appraisal projects - Focus on the Atlantic Margin - Carry out subsurface evaluation/…
  30. Annual General Meeting – Providence Resources, Inc. – slide 30
    Providence is targeting 5 BBOE in 8 basins EXPLORATION Asset Basin Operator % Dunquin North South Porcupine ExxonMobil 16.0% Dunquin South South Porcupine ExxonMobil 16.0% Cuchulain Goban Spur ENI 5.0% Drombeg South Porcupine…
  31. Annual General Meeting – Providence Resources, Inc. – slide 31
    Share Price Movement Providence Share Price History 6.00 6,000,000 5.42 5.00 5,000,000 4.01 4.00 4,000,000 3.69 Share Price (GBP ) Monthly Volume 3.18 3.05 3.00 3,000,000 2.57 2.28 2.25 2.27 2.07 1.85 1.91 2.00…
  32. Annual General Meeting – Providence Resources, Inc. – slide 32
    Share Price Movement E&P SECTOR PERFORMANCE INSTITUTIONAL SHAREHOLDER CHANGES DRILLING - DUNQUIN RESULTS - DELAYS - SPANISH POINT & KISH BARRYROE FARM OUT PROCESS WORKING CAPITAL CONCERNS 32
  33. Annual General Meeting – Providence Resources, Inc. – slide 33
    E&P Sector Performance Share Price Discount to NAV/Share - 2013 & 2014 100% 2013 2014 90% 80% Share Price Discount to Nav/Share 70% 60% 50% 40% 30% 20% 10% 0% Providence Xcite Lansdowne Ithaca…
  34. Annual General Meeting – Providence Resources, Inc. – slide 34
    Share Price Movement E&P SECTOR PERFORMANCE INSTITUTIONAL SHAREHOLDER CHANGES DRILLING - DUNQUIN RESULTS - DELAYS - SPANISH POINT & KISH BARRYROE FARM OUT PROCESS WORKING CAPITAL CONCERNS 34
  35. Annual General Meeting – Providence Resources, Inc. – slide 35
    Share Price Movement - Funds Providence Share Price History 6.00 6,000,000 JP MORGAN REDUCES BY 5% 5.42 BLACKROCK REDUCES BY 3% HSBC REDUCES BY 1% F&C REDUCES BY 1% 5.00 5,000,000 4.01 4.00 4,000,000 3.69 Share Price (GBP…
  36. Annual General Meeting – Providence Resources, Inc. – slide 36
    Share Price Movement E&P SECTOR PERFORMANCE INSTITUTIONAL SHAREHOLDER CHANGES DRILLING - DUNQUIN RESULTS - DELAYS - SPANISH POINT & KISH BARRYROE FARM OUT PROCESS WORKING CAPITAL CONCERNS 36
  37. Annual General Meeting – Providence Resources, Inc. – slide 37
    Drilling Dunquin Announced Results in July 2013 - c. 150 residual oil column encountered in massive over-pressured high porosity carbonate reservoir system Spanish Point Drilling originally planned for 2013 Moved out to 2014 due…
  38. Annual General Meeting – Providence Resources, Inc. – slide 38
    Share Price Movement - Drilling Providence Share Price History 6.00 6,000,000 JP MORGAN REDUCES BY 5% 5.42 BLACKROCK REDUCES BY 3% HSBC REDUCES BY 1% F&C REDUCES BY 1% 5.00 5,000,000 4.01 4.00 4,000,000 3.69 Share Price (GBP…
  39. Annual General Meeting – Providence Resources, Inc. – slide 39
    Share Price Movement E&P SECTOR PERFORMANCE INSTITUTIONAL SHAREHOLDER CHANGES DRILLING - DUNQUIN RESULTS - DELAYS - SPANISH POINT & KISH BARRYROE FARM OUT PROCESS WORKING CAPITAL CONCERNS 39
  40. Annual General Meeting – Providence Resources, Inc. – slide 40
    Barryroe Farm-out Process NSAI CPR Published - April 2013 Hiring of Advisor May 2013 Rothschilds No foal, no fee started July 2013 Set up data room Data room meetings Aug 2013 - to date Meetings in Dublin, London, New York,…
  41. Annual General Meeting – Providence Resources, Inc. – slide 41
    Barryroe Phased Development * Phase 1 : First Phase Production System Eastern area focused development Leased floating solution to get early production Reduced CAPEX requirements Up to 70 MMBOE REC 30,000 BOPD peak rate Phase 1…
  42. Annual General Meeting – Providence Resources, Inc. – slide 42
    Share Price Movement E&P SECTOR PERFORMANCE INSTITUTIONAL SHAREHOLDER CHANGES DRILLING - DUNQUIN RESULTS - DELAYS - SPANISH POINT & KISH BARRYROE FARM OUT PROCESS WORKING CAPITAL CONCERNS 42
  43. Annual General Meeting – Providence Resources, Inc. – slide 43
    Share Price Movement - Financing Providence Share Price History 6.00 6,000,000 JP MORGAN REDUCES BY 5% 5.42 BLACKROCK REDUCES BY 3% HSBC REDUCES BY 1% F&C REDUCES BY 1% 5.00 5,000,000 4.01 4.00 4,000,000 3.69 Share Price…
  44. Annual General Meeting – Providence Resources, Inc. – slide 44
    What Does The Future Hold Key Drivers What do the brokers say Barryroe Farm out Cantor Fitzgerald 5.03 Other Farm outs Liberum 8.11 Drilling Davy 16.08 Cenkos 23.61 BMO Capital 30.88 Providence Share Performance - 2012 8 +325%…
  45. Annual General Meeting – Providence Resources, Inc. – slide 45
    Broker Valuations (Risked) Broker Valuations 35 Other PVR Assets Barryroe Asset 30 25 NAV / Share GBP 20 5.71 20.27 15 7.80 10 17.90 1.81 5 1.02 10.61 8.28 6.30 4.01 0 Cantor Liberum Davy Cenkos BMO 45 5.03 8.11…
  46. Annual General Meeting – Providence Resources, Inc. – slide 46
    OPERATIONAL UPDATE John OSullivan 46 Technical Director
  47. Annual General Meeting – Providence Resources, Inc. – slide 47
    Appraisal
  48. Annual General Meeting – Providence Resources, Inc. – slide 48
    Barryroe Oil Field, North Celtic Sea Basin PROVIDENCE HOLDS 80% (Operator) Partner is LANSDOWNE (20%) AUDITED GROSS ON BLOCK RESOURCES OIP REC 2C/P50 2C/P50 Main Sands MMBO MMBO Middle Wealden - oil 287 45 RPS Basal Wealden - oil 761…
  49. Annual General Meeting – Providence Resources, Inc. – slide 49
    Barryroe vs Seven Heads Structure South North Seven Heads Barryroe 49
  50. Annual General Meeting – Providence Resources, Inc. – slide 50
    Fault Comparison: Barryroe vs Seven Heads Base Chalk Amp +/-10ms ( Seven Heads Complex inverted bimodal faulting) Base Cret Unc Amp +/-10ms ( Barryroe Simple extensional unimodal faulting) Shallow fault shadowing 50
  51. Annual General Meeting – Providence Resources, Inc. – slide 51
    Compartmentalisation The 48/24-10z DST 1 data indicate that the basal Wealden oil sand is well connected The 48/24-10z data calibration well was never designed to demonstrate volume and yet it contacted a minimum c. 5 MMBO from just…
  52. Annual General Meeting – Providence Resources, Inc. – slide 52
    Basal Wealden Reservoir Depositional Environment Oil bearing Berriasian Basal Wealden A sand is the primary objective Lies directly on the Purbeck Shale Fm (oil source) Clean arenitic well developed laterally continuous system…
  53. Annual General Meeting – Providence Resources, Inc. – slide 53
    Braid Plain Reservoirs Production Geology (AAPG) Excellent very productive reservoirs Braid Plain in Iran High net to gross Continental scale Excellent lateral continuity & good connectivity Form in response to periods of active…
  54. Annual General Meeting – Providence Resources, Inc. – slide 54
    Barryroe 48/24-10z Well Key Points: Test flowed 3,500 BOPD (Skin of c. +10) without artificial lift from 7m perforated basal oil zone: No depletion seen on test; No evidence of gas cap on test; Minimum connected volume 5 MMBO;…
  55. Annual General Meeting – Providence Resources, Inc. – slide 55
    Barryroe Crude Oil - Properties Barryroe is a light, sweet, high value, waxy crude oil: 43 API oil , 17% Wax content and likely to trade at a premium to the Brent benchmark Excellent low in-situ oil viscosity: 0.8 cP in-situ…
  56. Annual General Meeting – Providence Resources, Inc. – slide 56
    First Phase Production System FPSO Scenario * 56 * Final development plan subject to partner and regulatory approval
  57. Annual General Meeting – Providence Resources, Inc. – slide 57
    Barryroe Phased Development Plan Timeline * 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Phase 1 Appraisal FEED FID Pipeline/ Xmas Tree Lead Time FPSO Upgrade FPSO Hookup & Commissioning Phase 1…
  58. Annual General Meeting – Providence Resources, Inc. – slide 58
    Spanish Point Field, Northern Porcupine Basin PROVIDENCE HOLDS 32% Operator is Cairn (38%) Other partners are Chrysaor (26%) and Sosina (4%) SPANISH POINT AUDITED GROSS RESOURCES Tested well and 3D coverage SPANISH POINT 225…
  59. Annual General Meeting – Providence Resources, Inc. – slide 59
    Spanish Point Field, Northern Porcupine Basin 59
  60. Annual General Meeting – Providence Resources, Inc. – slide 60
    Spanish Point Area, Northern Porcupine Basin c. 750 km2 3D seismic survey commenced on Spanish Point South area chasing 350 MMBOE of gross incremental un-risked prospective resources. 60
  61. Annual General Meeting – Providence Resources, Inc. – slide 61
    Dragon Gas Field, St Georges Channel Basin PROVIDENCE HOLDS 100% Both UK and Irish blocks held 100% by Providence DRAGON ESTIMATED REC RESOURCES Tested well and 3D coverage c. 60 BSCF REC (1C/P90) (PVR) c. 200 BSCF REC (2C/P50)…
  62. Annual General Meeting – Providence Resources, Inc. – slide 62
    Dragon Gas Field, St Georges Channel Basin IRL UK TESTED 20 MMSCFD DRY HOLE 62
  63. Annual General Meeting – Providence Resources, Inc. – slide 63
    DICE Dragon Interconnector, Containment & Export Interconnector between UK and Ireland w/access to LNG & southern UK Storage arbitrage facility between UK & Irish markets Infrastructure would reduce exploration hurdle rates for…
  64. Annual General Meeting – Providence Resources, Inc. – slide 64
    Helvick Field Development - Main Sand The Helvick Field was discovered in 1983 by 49/9-2 well which tested a cumulative rate of c. 10,000 BOPD Upper Jurassic reservoir system Main Sand tested 6,467 BOPD & 2.18 MMSCFD from a 42…
  65. Annual General Meeting – Providence Resources, Inc. – slide 65
    Helvick Field Development - Main Sand Helvick Main Sand - Production Profile Courtesy ABTOG Helvick Main Sand reservoir models as a 5,000 BOPD plateau rate for c.18 months with c. 3 MMBO REC. 65
  66. Annual General Meeting – Providence Resources, Inc. – slide 66
    Exploration
  67. Annual General Meeting – Providence Resources, Inc. – slide 67
    Ireland - Conjugate North Atlantic Source Margins Rock Superhighway After Enachescu et al. 2010 67
  68. Annual General Meeting – Providence Resources, Inc. – slide 68
    Ireland - Conjugate Southern Margins Porcupine Basin vs. Central North Sea 68
  69. Annual General Meeting – Providence Resources, Inc. – slide 69
    Dunquin Prospects, Southern Porcupine Basin PROVIDENCE HOLDS 16% Operator is ExxonMobil (25.5%) Other partners are ENI (27.5%), Repsol (25%), Atlantic Petroleum (4%) and Sosina (2%) REGIONAL ACTIVITY 2D (2006) coverage across…
  70. Annual General Meeting – Providence Resources, Inc. – slide 70
    Residual Oil - Schematic Microscopic View UNBREACHED BREACHED Oil fills the pore space Oil is flushed from the pore space and replaced Initial Oil saturation by water during a natural water-flood Some water is always present…
  71. Annual General Meeting – Providence Resources, Inc. – slide 71
    Dunquin South Prospect, Southern Porcupine Basin 71
  72. Annual General Meeting – Providence Resources, Inc. – slide 72
    Drombeg Prospect, Southern Porcupine Basin PROVIDENCE HOLDS 80% Operator is Providence Partner is Sosina (20%) REGIONAL ACTIVITY 2D (2008) coverage across area Drilling of Dunquin North exploration well (2013) Kosmos Energy…
  73. Annual General Meeting – Providence Resources, Inc. – slide 73
    Drombeg Prospect, Southern Porcupine Basin Courtesy PAD 73
  74. Annual General Meeting – Providence Resources, Inc. – slide 74
    Drombeg Prospect, Southern Porcupine Basin Courtesy Polarcus 74
  75. Annual General Meeting – Providence Resources, Inc. – slide 75
    Newgrange Prospect, Goban Spur Basin PROVIDENCE HOLDS 80% Operator is Providence Partner is Sosina (20%) REGIONAL ACTIVITY 2D (2008) coverage across area Dunquin North residual oil accumulation (2013) Major oil discoveries in…
  76. Annual General Meeting – Providence Resources, Inc. – slide 76
    Newgrange Prospect, Goban Spur Basin Courtesy PAD NEWGRANGE Top Eocene Top Cretaceous Base Chalk 50 Km Base Cretaceous Goban Spur Basin Southern Porcupine Basin 76
  77. Annual General Meeting – Providence Resources, Inc. – slide 77
    Newgrange Prospect, Goban Spur Basin One of the largest undrilled subsurface structures globally Top Cretaceous 1200 km2 4-way dip-closure with up to c. 300 metres of vertical relief Depth to Newgrange Prospect Below…
  78. Annual General Meeting – Providence Resources, Inc. – slide 78
    Polaris Prospect, Rathlin Basin PROVIDENCE HOLDS 100% Six block offshore licence in Rathlin Basin POLARIS Licence over island has recently been relinquished due to limited underlying prospectivity REGIONAL ACTIVITY Hydrocarbon…
  79. Annual General Meeting – Providence Resources, Inc. – slide 79
    Polaris Prospect, Rathlin Basin Polaris Ballinlea-1 Oil Well 79
  80. Annual General Meeting – Providence Resources, Inc. – slide 80
    Polaris Prospect, Rathlin Basin POLARIS PROSPECT Courtesy Mobil North Sea 80
  81. Annual General Meeting – Providence Resources, Inc. – slide 81
    Kish Prospect, Kish Bank Basin PROVIDENCE HOLDS 50% Operator is Providence KISH Partner (50%) is Kinsale Energy (PETRONAS) REGIONAL ACTIVITY 2D seismic coverage across basin PROVIDENCE ACTIVITY Major structure identified in…
  82. Annual General Meeting – Providence Resources, Inc. – slide 82
    Kish Prospect, Kish Bank Basin PROPOSED WELL LOCATION 82
  83. Annual General Meeting – Providence Resources, Inc. – slide 83
    Silverback Prospect, South Celtic Sea Basin PROVIDENCE HOLDS 100% Operator is Providence REGIONAL ACTIVITY PGS long offset Geostreamer 2D seismic (2013) PROVIDENCE ACTIVITY Licensing Option covers c. 1,500 km2 SILVERBACK…
  84. Annual General Meeting – Providence Resources, Inc. – slide 84
    Silverback Prospect, South Celtic Sea Basin c. 200 km2 Lower Cretaceous Structural Closure 84
  85. Annual General Meeting – Providence Resources, Inc. – slide 85
    OUTLOOK Tony OReilly 85 Chief Executive
  86. Annual General Meeting – Providence Resources, Inc. – slide 86
    Multi-Basin Drilling Programme 1. Barryroe Oil Field, North Celtic Sea Basin (PVR-80%) 4 - Providence Operated; Partner Lansdowne - 346 MMBOE REC 2. Dunquin Oil Prospects, South Porcupine (PVR-16%) - ExxonMobil Operated; Partners…
  87. Annual General Meeting – Providence Resources, Inc. – slide 87
    Valuations Relative to Price Target Liberum - Oil & Gas Producers - Marking to market July 2014 87
  88. Annual General Meeting – Providence Resources, Inc. – slide 88
    Broker Valuations (Risked) Broker Valuations 35 Other PVR Assets Barryroe Asset 30 25 NAV / Share GBP 20 5.71 20.27 15 7.80 10 17.90 1.81 5 1.02 10.61 8.28 6.30 4.01 0 Cantor Liberum Davy Cenkos BMO 88 5.03 8.11…

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