Energia
Providence Resources P.l.c. - 2018 Half Year Results
Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil & Gas Exploration Company, today announces its unaudited interim results for the half year ended June 30, 2018.
Commenting today, Tony O'Reilly, Chief Executive Officer of Providence Resources said:
During the first half of 2018, we continued to make strong progress in developing our very significant portfolio of assets offshore Ireland and this continued into the second half of the year with the signing of the Barryroe Updated FOA, which is a transformational event for the Company. We look forward to further updating our shareholders and the market as appropriate on this key project, as well as other assets within our portfolio.
Over the period, we have also closely monitored the proposals put forward in the Climate Emergency Measures Bill 2018 and as a member of the Irish Offshore Operators Association ("IOOA"), we participated in the Dail Eireann (Irish Parliament) Committee hearings held in July. Given Ireland's relative geographical isolation and the fact that we currently import 100% of our oil and c.40% of our gas needs, energy policy in Ireland is a very important issue, with a number of critical factors to be considered including security of energy supply, the impact of Brexit, the intermittent nature of installed renewable energy capacity, planning limitations, coupled with the fact that the Irish economy is heavily reliant on imported fossil fuels. As such a key provider of energy, the Oil & Gas industry has an important role to play in shaping our National Energy Policy. We will continue to work with the industry and other stakeholders to ensure that this important national issue is treated with the consideration and priority that it deserves as Ireland transitions to a low-carbon future.
We remain very optimistic about the future prospects for Providence and are both determined and uniquely positioned to continue to lead the industry in identifying and realising Ireland's significant offshore potential, whilst also scouting opportunities elsewhere that leverage our unique skillset and experience offshore Ireland. We have the portfolio, partners, people and financial resources in place to advance our portfolio through exploration & appraisal drilling for the benefit of all our shareholders.
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
* Held through wholly owned subsidiary, EXOLA DAC. On September 20, 2018, EXOLA and signed an updated and restated Farm-Out Agreement with APEC, which reduces Providence's equity in SEL 1/11 to 40.00%
The total recognised expense for the period is entirely attributable to equity holders of the Company.
The accompanying notes are an integral part of these condensed consolidated financial statements.
The accompanying notes are an integral part of these condensed consolidated financial statements.
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 2018 (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 14 September 2018.
The annual financial statements of the Group are prepared in accordance with IFRSs as issued by the International Accounting Standards Board and as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.
The condensed set of financial statements included in this half-yearly financial report has been prepared on a going concern basis as the Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future.
The accounting policies adopted in the 2018 half-yearly financial report are the same as those adopted in the 2017 Annual report and accounts other than the implementation of IFRS 9: Financial Instruments and IFRS 15: Revenue from Contracts with Customers from 1 January 2018.
The Group adopted IFRS 9 Financial Instruments, which addresses the classification, measurement and recognition of financial assets and liabilities, effective January 1, 2018. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting. The standard does not have a significant impact on the Group's financial statements.
The Group adopted IFRS 15 Revenue from Contracts with Customers, which specifies how and when an IFRS reporter will recognise revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures, effective January 1, 2018. The standard does not have a significant impact on the Group's financial statements.
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.
Comparative amounts have been regrouped, where necessary, on the same basis as in the current period.
The adoption of IFRS 16 Leases, which the Group will adopt for the year commencing 1 January 2019, will impact both the measurement and disclosures of leases over a low value threshold and with terms longer than one year. This has been considered by the directors and is not expected to have a significant impact on the Group's consolidated financial statements.
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.
As at 30 June 2018, the Group has capital commitments of approximately €2.8 million (31 December 2017: €6.8 million) to contribute to its share of costs of exploration and evaluation activities. All costs associated with the Barryroe drilling program of four wells and one horizontal side-track and potentially the two optional wells will be funded by APEC by way of non-recourse loan as provided for under the amended and restated Farm-out Agreement.
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