Providence Resources P.l.c.

Farm-out Agreement Signed - Standard Exploration Licence 1/11 Barryroe Oil and Gas Field, North Celtic Sea

PROVIDENCE RESOURCES P.l.c (“PROVIDENCE”) and LANSDOWNE OIL & GAS  plc (“LANSDOWNE”) HAVE AGREED TO FARM-OUT A 50% WORKING INTEREST IN THE BARRYROE OIL AND GAS FIELD TO SPOTON ENERGY LTD, A NORWEGIAN BASED RESOURCES COMPANY PARTNERING WITH A CONSORTIUM OF INTERNATIONAL SERVICE PROVIDERS TO FUND, DEVELOP AND PRODUCE THE BARRYROE OIL AND GAS FIELD.

THE BARRYROE OIL AND GAS FIELD IS ONE OF THE LARGEST UNDEVELOPED OIL AND GAS FIELDS OFFSHORE EUROPE AND, FULLY DEVELOPED, THE FIELD IS EXPECTED TO SUPPORT ENERGY SECURITY IN IRELAND AND SUPPORT THE GOVERNMENT’S COMMITMENT TO A CARBON NEUTRAL ECONOMY BY 2050.

SPOTON ENERGY AND ITS CONSORTIUM WILL FUND 100% OF THE EARLY DEVELOPMENT PROGRAMME (EDP) AND THE FULL FIELD DEVELOPMENT. THE EDP, WHICH INCLUDES FOUR WELLS AND FLOATING PRODUCTION FACILITIES, IS DESIGNED TO BOTH APPRAISE AND PRODUCE THE BARRYROE FIELD, GENERATING THE TECHNICAL DATA REQUIRED TO OPTIMISE THE FULL FIELD DEVELOPMENT PROGRAMME.

THE SPOTON CONSORTIUM OF SERVICE PROVIDERS COMPRISES THE EXPERIENCE AND EXPERTISE TO MOVE AHEAD WITH THE BARRYROE PROJECT WITH A TARGET CAMPAIGN START IN LATE 2022. 

SPOTON ENERGY WILL FINANCE PROVIDENCE & LANSDOWNE’S 50% SHARE OF THE EARLY DEVELOPMENT PROGRAMME (EDP) COSTS BY WAY OF A NON-RECOURSE LOAN WHICH IS SECURED AGAINST FUTURE BARRYROE PRODUCTION CASHFLOW.

SPOTON ENERGY WILL BE GRANTED WARRANTS WITH THE RIGHT TO SUBSCRIBE FOR 60 MILLION PROVIDENCE SHARES AT €0.17 PER SHARE FOLLOWING THE FIRST COMMERCIAL PRODUCTION LIFTING OF OIL FROM THE FIELD.  

Dublin and London – November 27, 2020 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Resources Company (“Providence” or the “Company”), today provides a commercial update for Standard Exploration Licence (“SEL”) 1/11 which includes the Barryroe oil and gas field. SEL 1/11 is operated by EXOLA DAC (“EXOLA”) (80%), a wholly owned subsidiary of Providence Resources, on behalf of its partner Lansdowne Celtic Sea Limited (“Lansdowne”) (20%), collectively the “Barryroe Partners”. SEL 1/11 lies in c. 100 metre water depths in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.