Energia
Providence Resources P.l.c. - Farm-out Agreement Signed - Standard Exploration Licence 1/11 - Barryroe, North Celtic Sea Basin
Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company (" " or the " "), today provides a commercial update on Standard Exploration Licence (" ") 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%), collectively referred to as the " ". 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.
The Company is pleased to announce that the Barryroe Partners have signed a Farm-Out Agreement (" ") with APEC in relation to SEL 1/11. APEC is a privately owned Chinese company which has a strategic partnership with China Oilfield Services Co., Ltd (" ") and JIC Capital Management Limited (" ") for the investment and development of offshore oil and gas opportunities worldwide utilising Chinese drilling units, services and equipment.
Under the terms of the FOA, in consideration for APEC being assigned a 50% working interest in SEL 1/11:
The Closing of the Farm-Out (" "), which is expected to occur in Q3 2018, is conditional on completion of all ancillary legal documentation required to implement the terms of the FOA, and is subject to the approval of the Minister of State at the Department of Communications, Climate Action and Environment and the approval of the Chinese government. In addition, the details of and schedule for the Drilling Programme are subject to further ongoing technical discussions between the Consortium, Exola and Lansdowne. Subject to Closing, the revised equity in SEL 1/11 will be EXOLA (Operator, 40%), APEC (50%) & Lansdowne (10%).
Further announcements on the transaction will be made in due course.
Speaking today, Tony O'Reilly, Chief Executive of Providence said:
Mr. Colin Lui , Chairman of APEC Energy Enterprise Limited commented:
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 of the 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.
Providence Resources is an Irish based Oil & Gas Exploration Company with a portfolio of appraisal and exploration assets located offshore Ireland. Providence's shares are quoted on the AIM in London and the ESM in Dublin. Further information on Providence can be found on www.providenceresources.com
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focussed oil and gas exploration company quoted on the AIM market and headquartered in Dublin. Lansdowne holds acreage in the north Celtic Sea Basin, including a 20% stake in Exploration Licence SEL 1/11 which contains the Barryroe oil field. For more information on Lansdowne, please refer to www.lansdowneoilandgas.com.
APEC Energy Enterprise Ltd. was established in 2014 as a Hong Kong registered company with headquarters in Beijing. In addition to its original focus on offshore oil & gas services, APEC provides upstream energy acquisition advice and management services in partnership with Chinese Oil Companies, offshore and onshore service providers, and SOE investment groups. www.apecenergy.com
In 2017, APEC established a strategic partnership with COSL and JIC for the investment and development of offshore oil and gas opportunities worldwide, utilising Chinese infrastructure and equipment (most notably Chinese offshore drilling units/vessels) to earn equity positions in projects.
JIC Capital Management Limited is a subsidiary of China Jianyin Investment Limited (hereinafter "JIC", or "the Group"), which is a Chinese state-owned (100% subsidiary of China Investment Corporation) integrated investment group established in 2004. Our mission is to promote technological progress and industrial upgrading, to build a strong culturally country, to promote consumption upgrade service, and to improve people's livelihood. We are committed to creating a long term, stable and sustainable returns on capital investment for our shareholders. As a State-owned Enterprises (SOE), we are also committed to fulfill social responsibilities.
Leveraging its comprehensive investment system and advanced investment model, JIC has profound insights of the driving factors behind China's economic growth and transition, and has been actively expanding its overseas business footprint in the international market. Our priorities are financial services, industrial manufacturing, cultural consumption, and information technology.
The Company is headquartered in Beijing with 14,000 employees around the world and over 120 branches in Mainland China, Hong Kong SAR and overseas locations. subsidiaries. In 2016, China Jianyin Investment Ltd.'s total revenue reached 10.875 billion yuan (US$1.731 billion), consolidated net profit was 6.446 billion yuan (US$ 1.026 billion), this accounted for 6.188 billion yuan (US$ 985 million) in net profit belonging to the parent company. By the end of 2016, the consolidated general assets amounted to 124.710 billion yuan (US$ 19.856 billion), the consolidated net assets amounted to 72.611 billion yuan (US$11.560 billion), of which 71.084 billion yuan (US$ 11.317 billion) belonged to the owner's equity of the parent company. FX rate of 1CNY = $0.15922 (as of March 27, 2018). http://en.jic.cn
JIC has a A+1 rating from Fitch, an A2 rating from Moody's and an A rating from Standard & Poors.
China Oilfield Services Co., Ltd. ("COSL") is the largest integrated oilfield service provider in Asia. Services run through all stages of offshore oil and gas exploration, development and production. The business is divided into four broad categories: geophysical prospecting services, drilling services, oilfield technical services and ship services. It is a majority owned (54.63%) subsidiary of Chinese state-owned company, CNOOC. www.cosl.com.cn
Barryroe, located in the north Celtic Sea Basin, off the south coast of Ireland, has had six wells successfully drilled on the structure. Hydrocarbons have been logged in all six wells, with flow test results from four wells. Four wells were drilled in the 1970's by Esso with a further appraisal well drilled in 1990 by Marathon Oil. The sixth well was drilled by Providence & Lansdowne in 2011/12. The oil is light (43 API) with a wax context of c. 17-20%. The successfully tested reservoir sands are of Cretaceous Middle and Lower Wealden age located between c. 4,500' TVDSS and 7,550' TVDSS. The field is covered by both 2D and 3D seismic, the latter which was acquired in 2011.
Following acquisition and interpretation of the new 2011 3D seismic data together with the subsequent drilling and testing of the 48/24-10z Barryroe appraisal well in 2012, Providence retained the services of Netherland Sewell & Associates Inc. (NSAI) to carry out a third party contingent resource audit (CPR) of the in-place hydrocarbon and recoverable resources for the Basal Wealden oil reservoir. NSAI reported that the Basal Wealden oil reservoir has a 2C in-place gross on-block volume of 761 MMBO with recoverable resources of 266 MMBO and 187 BCF of associated gas, based on a 35% oil recovery factor. A third party (CPR) audit of the overlying Middle Wealden, which was carried out by RPS Energy (RPS) in 2011, reported a 2C in-place gross on-block volume of 287 MMBO with technically recoverable resources of 45 MMBO and 21 BCF of associated gas, based on a 16% oil recovery factor.
The total combined audited gross on block 2C recoverable resources at Barryroe therefore amount to 346 MMBOE, comprising 311 MMBO and 207 BCF. The following table summarises the range of total gross audited on-block Barryroe oil resources:
Note: The table above excludes recoverable solution gas (i.e. 207 BCF or 34.5 MMBOE in the 2C case)
Further incremental resource potential has been identified in logged hydrocarbon bearing intervals within stacked Lower Wealden and Purbeckian sandstones which Providence has previously estimated contains total associated P90, P50 & P10 in place oil resources of 456 MMBO, 778 MMBO & 1,165 MMBO respectively. As there is currently limited reservoir and well test data available over these two intervals, future well data over these specific zones would be required in order to firm up their associated final recoverable resource estimates.
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti