Providence Resources — Interim / Quarterly Report 2017

Sep 21, 2017

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UNDER EMBARGO UNTIL 7:00 THURSDAY, 21ST SEPTEMBER 2017

Providence Resources P.l.c. - 2017 Half Year Results

LEADERSHIP IN DRILLING OFFSHORE IRELAND

BARRYROE WELL PLANNING UNDERWAY

Dublin and London - September 21, 2017 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil and Gas Exploration Company, today announces its unaudited interim results for the half year ended June 30, 2017.

Tony O'Reilly, Chief Executive Officer commented:

"The first half of 2017 was an exceptionally busy period for Providence as we completed the extensive consenting and logistical processes for the drilling of the 53/6-1 Druid/Drombeg ultra-deepwater exploration well.  During this period, we completed a major farm-out deal with Cairn, together with an option transaction with TOTAL over FEL 2/14.  We also agreed a farm-out to TOTAL on LO 16/27, as well as an option with Cairn, and we continued various commercial discussions on a number of our assets, most principally our flagship Barryroe project.  

The commercial transactions with Cairn and TOTAL provided incremental capital in excess of $45 million to be used for the drilling programme - this not only allowed for the deepening of the 53/6-1 exploration well to test the Drombeg prospect, but it also significantly reduced our financial exposure to the drilling costs.  These transactions also mean that the majority of Providence's Atlantic Margin assets have been successfully farmed-out to majors in accordance with our corporate strategy, with Avalon under the operatorship of TOTAL, Dunquin now under the operatorship of Eni and with TOTAL having an option to assume operatorship at FEL 2/14, which contains the undrilled Diablo prospect. Our last remaining Atlantic Margin asset, Newgrange, is the subject of ongoing farm-out discussions.

The drilling of the 53/6-1 Druid/Drombeg exploration well was a major operational undertaking for Providence, being situated in the deepest water depth ever drilled offshore north-west Europe.  This is a real credit to the Providence operational team and sub-contractors who worked so diligently to ensure its safe and environmentally benign delivery.  The results from the 53/6-1 well were disappointing as, while both reservoir sections were encountered within the pre-drill depth prognosis, both were water bearing. The possible presence of bitumen was reported in drill cuttings within the Drombeg reservoir interval, which may indicate that it received an oil charge which was not retained at this location.  However, further studies will be required in order to confirm this interpretation and its implications for the wider prospectivity within FEL 2/14.

At Barryroe, we have continued farm-in discussions - but to date, no deal has been consummated. Whilst discussions continue, the Board has taken a decision to advance drilling at Barryroe.  Noting the significant value attributable to Barryroe and prevailing low rates for rigs and associated offshore services, we have moved forward with planning for drilling (and possibly a side-track). Last month, we issued a request for expressions of interest for the supply of a mobile offshore drilling unit and have started the consent process for drilling.  The details on the forward dates for the planned drilling programme will be communicated once the schedule is finalised.  

Looking ahead, we await the decision whether TOTAL will exercise their option to farm-in to FEL 2/14 and we also look forward to seeing the outcome of exploration wells planned for acreage proximate to FEL 2/14, which will test plays similar to Diablo and to those which have proved to be successful in the conjugate Flemish Pass Basin, offshore Canada.  Regarding Avalon, we also await the decision whether Cairn will exercise their option.  Under the TOTAL farm-in to Avalon, there is already a partial promoted carry on a contingent exploration well.

As demonstrated by our recent drilling, Providence remains the most active explorer offshore Ireland, with over 20 years' operational experience generally and specifically some 13 years since it first licenced acreage in the Porcupine Basin.  Looking ahead, we will continue to seek to capitalise on the significant and unrealised value of our portfolio for the benefit of our shareholders."

H1 2017 OPERATIONAL HIGHLIGHTS

APPRAISAL PROJECTS

• Barryroe, North Celtic Sea Basin (SEL 1/11)

• Farm-out discussions continued

• Offshore Petroleum Lease 1 (OPL 1) South Option, North Celtic Sea Basin

• Latest mapping shows that this area has the potential to host significant incremental resources

EXPLORATION PROSPECTS

• **Druid/Drombeg & Diablo, Southern Porcupine Basin (FEL 2/14)

  Cairn Farm-In**

• Farm out signed with Capricorn, a wholly owned subsidiary of Cairn Energy PLC, where in consideration for Capricorn taking a 30% working interest in FEL 2/14, with an effective date of 1 July 2016, Capricorn agreed to:

  • Pay 45% of the drilling costs of the 53/6-1 exploration well, subject to a gross well cap of US$ 42 million, and thereafter at their 30% cost share

  • Make a cash payment of US$ 2.82 million on a pro rata 80/20 basis to Providence and Sosina

• Capricorn also agreed that, in the event that the JV partners agree to drill an appraisal well in FEL 2/14, it will pay 40% of well costs subject to a gross well cap of US$ 42 million and have the right to take over operatorship

• The equity ownership in FEL 2/14 is currently Providence 56% (Operator), Capricorn 30% and Sosina 14%

TOTAL Option

• Exclusive option agreed with TOTAL E&P Ireland B.V. ("TOTAL"), a wholly owned subsidiary of TOTAL S.A. which gives TOTAL the option and the right, but not the obligation, to farm-in to a 35% working interest in FEL 2/14 from Providence & Sosina, subject to the payment of US$ 27 million to Providence and Sosina (US$ 21.6 million and US$ 5.4 million, respectively).

• The option can be exercised by TOTAL within 60 business days of the completion (P&A'ing) of the 53/6-1 well

• The amount payable by TOTAL to Providence & Sosina (on a pro rata 80/20 basis) to acquire the Option is:

  • US$ 20.250 million (US$ 16.2 million to Providence) - this was paid on June 19th

  • US$ 6.750 million (US$ 5.4 million to Providence) - this is payable no later than 3 business days following the issuance of the P&A notice for the 53/6-1 well

• If TOTAL subsequently elects to exercise the option, Providence, Sosina and TOTAL will enter into an agreed form farm-in agreement to effect the transfer of a 35% working interest and operatorship in FEL 2/14 to TOTAL, such farm-in would be subject to Ministerial approval

• On this basis, the equity ownership in FEL 2/14 would be TOTAL 35% (Operator), Capricorn 30%, Providence 28% and Sosina 7%

• **Avalon,  Porcupine Basin (LO 16/27)

  TOTAL Farm-in**

• Farm-in signed with TOTAL E&P Ireland B.V. ("TOTAL"), a wholly owned subsidiary of TOTAL S.A, where in consideration for TOTAL taking a 50% working interest in LO 16/27, TOTAL agreed to:

  • Pay its pro-rata share of past gross costs of c. US$ 0.175 million

  • In addition to its pro-rata share, pay 21.4% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of US$ 1.33 million

• Subject to Ministerial approval, TOTAL is to assume operatorship of LO 16/27 with the resultant equity in LO 16/27 being TOTAL 50% (Operator), Providence 40% and Sosina 10%

• TOTAL also agreed that, in the event that the JV partners agree to convert LO 16/27 into a Frontier Exploration Licence, and a subsequent decision is taken to drill an exploration well, TOTAL will pay 60% of the drilling costs, subject to a gross well cap of US$ 42 million

• Cairn Option

• Exclusive option agreed with Capricorn, a subsidiary of Cairn Energy PLC

• Under the terms of the option, Capricorn has the right to farm-in to a 20% working interest in LO 16/27 from Providence and Sosina

• The option can be exercised by Capricorn within 60 days of the completion (P&A'ing) of the 53/6-1 well on Frontier Exploration Licence 2/14

• In the event that Capricorn exercise their option, Providence, Sosina and Capricorn will enter into an agreed farm-in agreement to effect the transfer of a 20% working interest in LO 16/27 to Capricorn, based on the following terms where Capricorn will:

  • Pay its pro-rata share of past gross costs of c. US$ 0.175 million

  • In addition to its pro-rata share, pay 8.6% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of US$ 1.33 million

• Capricorn also agreed that, in the event that the JV partners agree to convert LO 16/27 into a Frontier Exploration Licence and a subsequent decision is taken to drill an exploration well, Capricorn will pay 24% of the drilling costs, subject to a gross well cap of US$ 42 million

• In the event that Capricorn exercises the option, the final equity in LO 16/27 will be TOTAL 50% (Operator), Providence 24%, Capricorn 20% and Sosina 6%

• Conclusion of any farm-in by Capricorn would be subject to Ministerial approval

• Dunquin South, Southern Porcupine Basin (FEL 3/04)

• Licensing of 1,800 km2 of 3D seismic data from CGG as part of their Porcupine Basin multi-client 3D acquisition programme, which was acquired in June 2017

• Kish, Kish Bank Basin (SEL 2/11)

• Company's working interest increased to 100%

• Extension to the 1st phase of SEL 2/11 to August 2018 and an overall extension of one year to the licence term to August 2020

H1 2017 FINANCIAL HIGHLIGHTS

• Operating Loss for the period of €3.916 million versus €2.216 million in H1 2016

• Loss of €3.441 million versus €4.440 million in H1 2016

• Loss per share of 0.58 cents versus 3.17 cents in H1 2016

• At June 30, 2017, total cash & cash equivalents were €36.398 million (€0.522 million at June 30, 2016) with a further payment of US$ 5.4 million to Providence from TOTAL 3 days after the P&A'ing of the 53/6-1 well

• The Company had no debt at June 30, 2017 (€19.546 million at June 30, 2016)

BOARD CHANGES

• In May 2017, Angus McCoss joined the Board as a Non-executive Director

POST JUNE 30 EVENTS

• Barryroe, North Celtic Sea Basin (SEL 1/11)

• Extension to the 1st phase of SEL 1/11 to July 2019 and overall licence extension of 2 years to July 2021

• New 3D seismic uplift provides significantly enhanced visualization of Barryroe reservoir interval

• Planning now underway for a well to be drilled in 2H 2018/1H 2019

• EOI issued for drilling rig

• Revised well cost estimates for single vertical well of c. US$ 20 million

• **Druid/Drombeg, Southern Porcupine Basin (FEL 2/14)

  Drilling Operations**

• The 53/6-1 exploration well spud on July 11, 2017 using the Stena IceMax drill-ship, targeting the Druid and Drombeg exploration targets

• On August 4, 2017,  the Company confirmed that:

  • Paleocene Druid reservoir interval encountered with the pre-drill depth prognosis

  • Preliminary interpretation indicated Druid comprises a porous water bearing reservoir interval

• On September 11, 2017, the Company confirmed that:

  • Lower Cretaceous Drombeg reservoir interval encountered with the pre-drill depth prognosis

  • Preliminary interpretation indicated Drombeg comprises a porous water bearing reservoir interval

  • The possible presence of bitumen was reported in drill cuttings within the Drombeg reservoir interval which may indicate that it received an oil charge which was not retained at this location 

  • Post well studies will be carried out on the well data and the possible presence of bitumen to confirm this interpretation and its implications for the wider prospectivity within FEL 2/14

• In accordance with the pre-drill plans, the well is currently being plugged and abandoned

• Avalon, Southern Porcupine Basin (LO 16/27)

• A large scale calibrated Petroleum Systems Model (PSM, c. 48,000 km 2), which included the LO 16/27 area, supports the potential of a working petroleum system in LO 16/27

• The model demonstrates that the Avalon prospect could potentially access a total hydrocarbon resource charge of c. 8.67 BBO and c. 21.43 TSCF (equivalent to c. 12 BBOE)

• Newgrange, Goban Spur Basin (FEL 6/14)

• Farm out process ongoing

OUTLOOK

We have a high quality portfolio of assets with significant partners and are very optimistic about the prospects both for Providence and the Irish Oil & Gas sector.  We remain both determined and uniquely positioned to continue to lead the industry in identifying and realising Ireland's significant offshore potential.

INVESTOR ENQUIRIES
Providence Resources P.l.c.	Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive Officer
Cenkos Securities plc	Tel: +44 131 220 9771
Neil McDonald/Derrick Lee
J&E Davy	Tel: +353 1 679 6363
Anthony Farrell
MEDIA ENQUIRIES
Powerscourt	Tel: +44 207 250 1446
Peter Ogden
Murray Consultants	Tel: +353 1 498 0300
Pauline McAlester

ABOUT PROVIDENCE RESOURCES

Providence Resources is an Irish based Oil and Gas Exploration Company with a portfolio of appraisal and exploration assets located offshore Ireland.  Providence's shares are quoted on AIM in London and the ESM in Dublin.

GLOSSARY OF TERMS USED

BBO - Billion Barrels of Oil

BBOE - Billion Barrels of Oil Equivalent

EOI - Expression of Interest

FEL - Frontier Exploration Licence

LO - Licensing Option

LU - Lease Undertaking

MMBOE - Millions of Barrels of Oil Equivalent

OPL - Offshore Production Lease

SEL - Standard Exploration Licence

TSCF - Trillion Standard Cubic Feet of Gas

ANNOUNCEMENT

This announcement has been reviewed by Dr John O'Sullivan, Technical Director, Providence Resources P.l.c.  John is a geology graduate of University College, Cork and holds a Masters in Applied Geophysics from the National University of Ireland, Galway. He also holds a Masters in Technology Management from the Smurfit Graduate School of Business at University College Dublin and a doctorate in Geology from Trinity College Dublin.  John is a Chartered Geologist and a Fellow of the Geological Society of London.  He is also a member of the Petroleum Exploration Society of Great Britain, the Society of Petroleum Engineers and the Geophysical Association of Ireland.  John has more than 25 years of experience in the oil and gas exploration and production industry having previously worked with both Mobil and Marathon Oil.  John is a qualified person as defined in the guidance note for Mining Oil & Gas Companies, March 2006 (London Stock Exchange). Definitions in this press release are consistent with SPE guidelines.  SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in preparing this announcement.

SUMMARY OF LICENCE INTERESTS

Ref	Licence	Issued	Key Asset	Operator	Providence Partners	PVR %	Classification
NORTH CELTIC SEA BASIN
1	SEL 1/11	2011	BARRYROE	Providence	Lansdowne	80.0	Oil discovery
2	SEL 2/07	2007	HOOK HEAD	Providence	Atlantic; Sosina	72.5	Oil & gas discovery
3	LU	2016	HELVICK	Providence	Atlantic; Sosina, Lansdowne; MFDC	62.5	Oil & gas discovery
4	LU	2016	DUNMORE	Providence	Atlantic; Sosina; MFDC	72.5	Oil discovery
NORTHERN  PORCUPINE BASIN
5	FEL 2/04	2004	SPANISH POINT	Cairn	Cairn; Sosina	58.0	Oil & gas discoveries
5	FEL 4/08	2008	SPANISH POINT NTH	Cairn	Cairn; Sosina	58.0	Oil & gas exploration
SOUTHERN PORCUPINE BASIN
6	LO 16/27 1616/27FEL 3/04	2016	AVALON	TOTAL1,	Sosina; (Cairn)2	40.0	Oil & gas exploration
7	FEL 2/14	2014	DRUID	Providence3	Cairn; Sosina; (TOTAL)3	56.0	Oil & gas exploration
7	FEL 2/14	2014	DROMBEG	Providence3	Cairn; Sosina; (TOTAL)3	56.0	Oil & gas exploration
7	FEL 2/14	2014	DIABLO	Providence3	Cairn; Sosina; (TOTAL)3	56.0	Oil & gas exploration
8	FEL 3/04	2014	DUNQUIN	Eni	Eni; Repsol; Sosina	26.8	Oil exploration
GOBAN SPUR BASIN
9	FEL 6/14	2014	NEWGRANGE	Providence	Sosina	80.0	Oil & gas exploration
KISH BANK BASIN
10	SEL 2/11	2011	KISH BANK	Providence		100.0	Oil & gas exploration
ST GEORGE'S CHANNEL BASIN
11	SEL 1/07	2007	DRAGON	Providence		100.0	Gas discovery

PROVIDENCE RESOURCES P.l.c.

Condensed consolidated income statement

For the 6 months ended 30 June 2017

	** Notes**	** 6 months ended 30 June 2017 Unaudited €'000**	6 months ended 30 June 2016 Unaudited €'000	** Year ended 31 December 2016 Audited €'000**
Continuing operations
Administration and legal expenses	3	(3,624)	(1,739)	(3,688)
Pre-licence expenditure		-	(59)	(61)
Impairment of  exploration and evaluation  assets		(292)	(418)	(15,095)
Operating loss	2	(3,916)	(2,216)	(18,844)
Finance income		67	6	39
Finance expense	4	408	(2,230)	(1,741)
Loss before income tax		(3,441)	(4,440)	(20,546)
Income tax expense		-	-	-
Loss for the period		(3,441)	(4,440)	(20,546)
Loss per share (cent) - continuing operations
Basic and diluted loss per share	9	(0.58)	(3.17)	(5.80)

PROVIDENCE RESOURCES P.l.c.

Consolidated statement of comprehensive income

For the 6 months ended 30 June 2017

	6 months ended 30 June 2017 Unaudited €'000	6 months ended 30 June 2016 Unaudited €'000	Year ended 31 December 2016 Audited €'000
Loss for the financial period	(3,441)	(4,440)	(20,546)
Items that may be reclassified to profit or loss
Foreign exchange translation differences	(4,807)	(2,266)	1,994
Total income and expense recognised in other comprehensive income from continuing operations	** (4,807)**	** (2,266)**	** 1,994**
Total comprehensive expense for the period	(8,248)	(6,706)	(18,552)

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 2017

	Notes	30 June 2017 Unaudited €'000	30 June 2016 Unaudited €'000	31 December 2016 Audited €'000
Assets
Exploration and evaluation assets	5	83,451	96,904	89,276
Property, plant and equipment		93	136	102
Intangible assets		139	243	192
Total non-current assets		83,683	97,283	89,570
Trade and other receivables	8	6,373	2,400	255
Cash and cash equivalents		36,398	522	31,403
Total current assets		42,771	2,922	31,658
Total assets		126,454	100,205	121,228
Equity
Share capital	6	71,452	25,694	71,452
Capital conversion reserve fund		623	623	623
Share premium	6	247,918	226,998	247,918
Foreign currency translation reserve		9,008	9,555	13,815
Share based payment reserve		1,605	3,151	1,398
Retained deficit		(227,329)	(203,785)	(223,888)
Total equity attributable to equity holders of the Company		103,277	62,236	111,318
Liabilities
Decommissioning provision		7,259	7,324	7,783
Total non-current liabilities		7,259	7,324	7,783
Trade and other payables	7	15,918	11,099	2,127
Loans and borrowings		-	19,546	-
Total current liabilities		15,918	30,645	2,127
Total liabilities		23,177	37,969	9,910
Total equity and liabilities		126,454	100,205	121,228

PROVIDENCE RESOURCES P.l.c.

Consolidated statement of changes in Equity

For the 6 months ended 30 June 2017

	Share Capital €'000	Capital Conversion Reserve Fund €'000	Share Premium €'000	Foreign Currency Translation Reserve  €'000	Share Based Payment Reserve €'000	Retained Deficit €'000	Total €'000
At 1 January 2016	25,694	623	226,998	11,821	3,586	(199,780)	68,942
Loss for financial period	-	-	-	-	-	(4,440)	(4,440)
Currency translation	-	-	-	(2,266)	-	-	(2,266)
Total comprehensive income	-	-	-	(2,266)	-	(4,440)	(6,706)
Transactions with owners, recorded directly in equity
Share options lapsed in period	-	-	-	-	(435)	435	-
At 30 June 2016	25,694	623	226,998	9,555	3,151	(203,785)	62,236
At 1 January 2017	71,452	623	247,918	13,815	1,398	(223,888)	111,318
Loss for financial period	-	-	-	-	-	(3,441)	(3,441)
Currency translation	-	-	-	(4,807)	-	-	(4,807)
Total comprehensive income	-	-	-	(4,807)	-	(3,441)	(8,248)
Transactions with owners, recorded directly in equity
Share based payments in period	-	-	-	-	207	-	207
At 30 June 2017	71,452	623	247,918	9,008	1,605	(227,329)	103,277
At 1 January 2016	25,694	623	226,998	11,821	3,586	(199,780)	68,942
Loss for financial year	-	-	-	-	-	(20,546)	(20,546)
Currency translation	-	-	-	1,994	-	-	1,994
Total comprehensive income	-	-	-	1,994	-	(20,546)	(18,552)
Transactions with owners, recorded directly in equity
Share based payments	-	-	-	-	142	-	142
Share options lapsed in year	-	-	-	-	(837)	837	-
Share options cancelled in year	-	-	-	-	(1,493)	1,493	-
Shares issued in period	45,758	-	20,920	-	-	(5,892)	60,786
At 31 December 2016	71,452	623	247,918	13,815	1,398	(223,888)	111,318

PROVIDENCE RESOURCES P.l.c.

Consolidated statement of cash flows

For the 6 months ended 30 June 2017

	6 months ended 30 June 2017	6 months ended 30 June 2016	Year ended 31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
Cash flows from operating activities
Loss before income tax for the period	(3,441)	(4,440)	(20,546)
Adjustments for:
Depletion and depreciation	33	34	66
Amortisation of intangible assets	52	52	104
Impairment of exploration and evaluation assets	292	418	15,095
Finance income	(67)	(6)	(39)
Finance expense	(408)	2,230	1,741
Equity settled share based payment charge	207	-	142
Foreign exchange	1,288	(572)	1,113
Change in trade and other receivables	(6,118)	(226)	1,919
Change in trade and other payables	6,886	(1,705)	(10,585)
Interest paid	-	(996)	(1,266)
Net cash (outflow) from operating activities	(1,276)	(5,211)	(12,256)
Cash flows from investing activities
Interest received	67	6	39
Acquisition of exploration and evaluation assets	(10,861)	(326)	(3,982)
Acquisition of property, plant and equipment	(24)		-
Farm in proceeds	18,497	-	-
Net cash from/(used) in investing activities	7,679	(320)	(3,943)
Cash flows from financing activities
Proceeds from issue of share capital	-	-	61,202
Share capital issue costs	-	-	(416)
Repayments of loans and borrowings	-	-	(19,633)
Net cash from financing activities	-	-	41,153
Net (decrease)/increase in cash and cash equivalents	6,403	(5,531)	24,954
Cash and cash equivalents at beginning of  period	31,403	6,518	6,518
Effect of exchange rate fluctuations on cash and cash equivalents	(1,408)	(465)	(69)
Cash and cash equivalents at end of period	36,398	522	31,403

PROVIDENCE RESOURCES P.l.c.

Note 1

Basis of preparation

Providence Resources P.l.c ("the Company") is a company incorporated in the Republic of Ireland. The unaudited consolidated interim financial statements of the Company for the six months ended 30 June 2017 (the "Interim Financial Statements") include the Company and its subsidiaries (together referred to as the "Group").  The Interim Financial Statements were authorised for issue by the Directors on 20 September 2017.

The annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU.  These condensed set of financial statements included in this half-yearly report have been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU and the Group's accounting policies as disclosed in the 2016 Annual Report, which are available from the group's website www.providenceresources.com.

The Interim Financial Statements do not constitute statutory financial statements.  The statutory financial statements for the year ended 31 December 2016, extracts from which are included in these Interim Financial Statements, were prepared under IFRSs as adopted by the EU and will be filed with the Registrar of Companies with the Company's 2016 annual return.

The Interim Financial Statements are presented in Euro, rounded to the nearest thousand, which is the functional currency of the parent company and also the presentation currency for the Group's financial reporting.

Amendments to existing standards

During the period, a number of amendments to existing accounting standards became effective. These have been considered by the directors and have not had a significant impact on the Group's consolidated financial statements.

PROVIDENCE RESOURCES P.l.c.

Note 2

Operating segments

	6 months ended 30 June 2017	6 months ended 30 June 2016	Year ended 31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
Segment net (loss) for the period
UK - exploration assets	54	(73)	(67)
Republic of Ireland - exploration assets	(346)	(345)	(15,028)
Corporate expenses	(3,624)	(1,798)	(3,749)
Operating loss for the period	(3,916)	(2,216)	(18,844)
Segment assets
Republic of Ireland - exploration assets	89,824	96,904	89,659
US	-	32	-
Group assets	36,630	3,269	31,569
Total assets	126,454	100,205	121,228
Segment Liabilities
UK - exploration	(37)	(101)	(64)
Republic of Ireland - exploration	(23,140)	(18,322)	(9,598)
US	-	-	(1)
Group liabilities	-	(19,546)	(247)
Total Liabilities	(23,177)	(37,969)	(9,910)
Capital Expenditure
UK - exploration assets	(54)	71	67
Republic of Ireland - exploration assets	(678)	255	3,915
Republic of Ireland - property, plant and equipment	24	-	-
Total Capital Expenditure	(708)	326	3,982
Impairment charge
Republic of Ireland - exploration assets	346	345	15,028
UK - exploration assets	(54)	73	67
	292	418	15,095

PROVIDENCE RESOURCES P.l.c.

Note 3

Administration and legal Expense

	6 months ended 30 June 2017	6 months ended 30 June 2016	Year ended 31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
Corporate, exploration and development expenses	3,144	1,952	4,271
Legal expenses	25	110	68
Foreign exchange difference	1,490	219	507
Total administration expenses for the period	4,659	2,281	4,846
Capitalised in exploration and evaluation assets	(1,035)	(542)	(1,158)
Total charged to the income statement	3,624	1,739	3,688

Note 4

Finance Expense

	6 months ended 30 June 2017	6 months ended 30 June 2016	Year ended 31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
Interest charge	-	1,010	1,093
Amortisation of arrangement fees and other amounts	-	1,680	1,643
Unwinding of discount on decommissioning provision	70	66	138
Foreign exchange on decommissioning provision	(478)	(140)	221
Interest charge on legal settlement**	-	-	(1,055)
Foreign exchange gain on revaluation of loan	-	(386)	(299)
Total finance expense recognised in income statement	(408)	2,230	1,741
Recognised directly in equity
Foreign currency differences on foreign operations	(4,807)	(2,266)	1,994
Total foreign exchange expenses recognised in equity	(4,807)	(2,266)	1,994

** The interest credit arose on the resolution of the Transocean legal case

PROVIDENCE RESOURCES P.l.c.

Note 5

Exploration and evaluation assets

	Republic of Ireland	UK	Total
	€'000	€'000	€'000
Cost and book value
At 1 January 2016	98,211	-	98,211
Additions	507	65	572
Cash calls received in period	(788)	-	(788)
Administration expenses capitalised	537	5	542
Impairment charge	(345)	(73)	(418)
Foreign exchange translation	(1,218)	3	(1,215)
At 30 June 2016	96,904	-	96,904
At 1 January 2016	98,211	-	98,211
Additions	4,047	62	4,109
Administration expenses capitalised	1,153	5	1,158
Cash call received in year	(1,285)	-	(1,285)
Impairment charge	(15,028)	(67)	(15,095)
Foreign exchange translation	2,178	-	2,178
At 31 December 2016	89,276	-	89,276
At 1 January 2017	89,276	-	89,276
Additions	9,879	(54)	9,825
Cash calls received in period	-	-	-
Farm in proceeds	(11,592)	-	(11,592)
Administration expenses capitalised	1,035		1,035
Impairment charge	(346)	54	(292)
Foreign exchange translation	(4,801)	-	(4,801)
At 30 June 2017	83,451	-	83,451

PROVIDENCE RESOURCES P.l.c.

Note 6

Share Capital and Share Premium

		Number
Authorised:		'000	€'000
At 1 January 2017
Deferred shares of €0.011 each		1,062,442	11,687
Ordinary shares of €0.10 each		986,847	98,685
At 30 June 2017
Deferred shares of €0.011 each		1,062,442	11,687
Ordinary shares of €0.10 each		986,847	98,685
	Number	Share Capital	Share Premium
Issued:	'000	€'000	€'000
Deferred shares of €0.011 each	1,062,442	11,687	5,691
Ordinary share of €0.10 each	140,076	14,007	221,307
At 1 January 2016	140,076	25,694	226,998
At 30 June 2016	140,076	25,694	226,998
Shares issued	457,582	45,758	20,920
At 31 December 2016	597,658	71,452	247,918
At 30 June 2017	597,658	71,452	247,918

Note 7

Trade and other creditors

	6 months ended 30 June 2017	6 months ended 30 June 2016	Year ended 31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
Capital expenditure payable(1)	-	8,110	-
Accruals and deferred income	6,273	1,604	1,589
Trade creditors	2,740	1,385	538
Advance payment from Joint Operation Partner	6,905	-	-
Total	15,918	11,099	2,127

(1) Capital invoices and associated costs related to the Transocean legal dispute

PROVIDENCE RESOURCES P.l.c.

Note 8

Trade and other receivables

	6 months ended 30 June 2017	6 months ended 30 June 2016	Year ended 31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
VAT recoverable	33	54	38
Prepayments	1,418	342	125
Amounts due from Joint Operation Partner	4,922	2,004	92
Total	6,373	2,400	255

Note 9

Earnings per share

	30 June 2017	30 June 2016	31 December 2016
	Unaudited	Unaudited	Audited
	€'000	€'000	€'000
Loss attributable to equity holders of the company from continuing operations	(3,441)	(4,440)	(20,546)
The basic weighted average number of Ordinary share in issue ('000)
In issue at beginning of year	597,658	140,076	140,077
Adjustment for shares issued in period	-	-	214,374
Weighted average number of ordinary shares	597,658	140,076	354,451
Basic loss per share (cent) - continuing operations	(0.58)	(3.17)	(5.80)
The weighted average number of ordinary shares for diluted earnings per share calculated as follows:
Weighted average number of ordinary shares	597,658	140,076	354,451
Diluted loss per share (cent) - continuing operations	(0.58)	(3.17)	(5.80)

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 10

Share schemes

2009 Scheme

In 2009, the Directors adopted a share option scheme which also contains share growth performance criteria.  The option price is the market price immediately preceding the date of grant.  The "2009 scheme" operates as an equity-settled share option scheme and the options are granted subject to the following conditions:

i.        50% of total options granted are exercisable after one year from the date of grant provided that the market price of the company's shares has increased by a minimum of 25% and has maintained such increase over a period of three months prior to the exercise of any option.

ii.        The remaining 50% of the total options granted are exercisable after a further year has elapsed provided the market price of the company's shares has increased by a minimum of 50% from date of grant and has maintained such increase over a period of three months prior to the exercise of any option.

3,750,000 (2016: nil) options granted during the period 2017 under this scheme.  The fair value of the options granted during the year was estimated at €0.10c per share. The following key input assumptions were applied:

Volatility	65%
Time period	7 years
Dividend yield	0%
Risk free interest rate	(0.22%)
Exercise price	0.17c

At 30 June 2017, options over 28.440 million (2016: 0.910 million) shares remained outstanding at subscription prices ranging from €0.142 to €6.13.  These options expire at varying dates up to June 2024.

For the period ended 30 June 2017	2016 scheme		2009 scheme
		Weighted		Weighted
	No of	average	No of	average
	share	exercise	share	exercise
	options	price	Options	price
	000's	€	000's	€
At 1 January	22,200	0.45	2,490	0.84
2017
Granted during period	-	-	3,750	0.17
Expired during period	-	-	-	-
Cancelled during period	-	-	-	-
At 30 June 2017	22,200	0.45	6,240	0.44

Note 11

Commitments

As at 30 June 2017, the Group has capital commitments of approximately €8.585mm to contribute to its share of costs of exploration and evaluation activities. This is the net cost to Providence Resources Plc after receiving all funds from JV partners.

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*This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Providence Resources plc via Globenewswire*