Providence Resources plc : Preliminary Results for the year ended 31st December 2012 8th May 2013 Embargo: 7am PROVIDENCE RESOURCES P.l.c. ("Providence" or the "Company") Preliminary Results for the year ended 31^st December 2012 Providence Resources P.l.c., the Irish oil and gas exploration and appraisal company, whose shares are quoted in London (AIM) and Dublin (ESM), announces its preliminary results for the year ended 31st December 2012. OPERATIONAL HIGHLIGHTS DRILLING PROGRAMME The year 2012 was a landmark year for Providence as operations on the first well in the Company's multi-well, multi-year drilling programme offshore Ireland were successfully completed at Barryroe. This $500 million, six well programme is the largest and most comprehensive drilling programme undertaken offshore Ireland, involving Providence and its partners in a number of exploration and development / appraisal wells across six different basins offshore Ireland. This first of six wells, which was successfully tested in March 2012, was an appraisal well on the Barryroe oil field in the North Celtic Sea Basin - the results of which have far exceeded expectations. Drilling of the second well, the Dunquin exploration well in the Porcupine Basin, off the west coast of Ireland commenced in April 2013 and plans are now in place for a further appraisal well to be drilled on the Spanish Point gas condensate field in Q2 2014, following the just announced farm in deal by Cairn Energy Plc. Two additional exploration wells are planned to be drilled in the Rathlin and Kish Bank Basins, whilst a further appraisal well is being planned to be drilled in the St. George's Channel. CELTIC SEA BASIN - BARRYROE OIL FIELD * Drilling and testing of 48/24-10z well with flow rates of 3,514 BOPD and 2.93 MMSCFGD (c. 4,000 BOEPD), which materially exceeded pre-drill expectations. (March 2012) - Additional gas interval also successfully tested * Competent Person's Report (CPR) on Basal Wealden Sands issued by leading international audit firm Netherland Sewell & Associates Inc (NSAI) (April 2013) * Audited figures validate the significant volumetric and recoverable resources. Total on block audited figures (April 2013) - 2C STOIIP of 1.048 billion barrels - 2C Recoverable Resources of 311 MMBO - Excludes additional recoverable gas in solution of 207 BCF (or 34.5 MMBOE) * Additional 778 MMBO STOIIP (P50) identified in logged hydrocarbon bearing intervals within stacked Lower Wealden and Purbeckian sandstones (September 2012) * Two year Licensing Option granted over adjacent c. 500 sq km area north and west of Barryroe (August 2012) * Phase 2 Development Engineering Study now complete * Farm out process has now commenced * Forward Plan - Field development preparation studies and post well analysis; farm out SOUTH PORCUPINE BASIN - DUNQUIN OIL/GAS PROSPECT * Commencement of drilling operations (April 2013) with results expected later this summer * Forward Plan - Await drilling results PORCUPINE BASIN - SPANISH POINT GAS CONDENSATE FIELD * Pre-drill site survey completed (August 2012) * Farm in by Cairn Energy in to FEL's 2/04 and 4/08, and LO 11/2 (May 2013) - Revised Equity levels - Cairn 38.0%, Providence 32.0% , Chrysaor 26%, and Sosina 4.0% - Farm in calls for up to 2 wells to be drilled & 3D seismic on LO 11/2 - Cairn to become Operator * Forward Plan - Appraisal well to be drilled; 3D Seismic RATHLIN BASIN - POLARIS OIL PROSPECT * Awarded Rathlin Basin Licence P1885 (offshore) ( January 2012) * Airborne Full Tensor Gradiometry survey completed (September 2012) * Polaris structure identified (September 2012) * Forward Plan - Exploration well to be drilled ST. GEORGE'S CHANNEL BASIN - DRAGON GAS FIELD * Awarded UK Licence P1930 over UK seaward block 103/1 (January 2012) * Forward Plan - Appraisal well to be drilled KISH BANK BASIN - KISH OIL PROSPECT * Receipt of Foreshore Licence (October 2012) * Voluntary surrender of Foreshore Licence due to the incorrect transposition of certain EU EIA directives into Irish law in 1999 by the Irish government, rendering the licence invalid (February 2013). * Forward Plan - Exploration well to be drilled OTHER FUTURE DRILLING OPPORTUNITIES SOUTH PORCUPINE BASIN - DROMBEG PROSPECT * Completion of seismic inversion studies by Ikon Science (August 2012) * Announced significant resource potential (P50 872 MMBO REC), based on an oil-in-place volume of 2,970 BBO (November 2012) * Forward Plan - Technical evaluation of future hydrocarbon potential; Farm out; 3D seismic GOBAN SPUR BASIN - NEWGRANGE PROSPECT * Repsol assumed role of Operator (March 2012) * Forward Plan - Technical evaluation of future hydrocarbon potential SLYNE BASIN - KYLEMORE AND SHANNON PROSPECTS * Updated mapping of Kylemore; re-evaluation of Shannon resource potential carried out; Gas potential of 228 BCF identified (April 2012) * Forward Plan - Technical evaluation of future hydrocarbon potential All planned drilling, site and seismic activities are based on relevant permit requirements and appropriate equipment availability / procurement. FINANCIAL HIGHLIGHTS This announcement has been prepared on the basis of the results and financial position that the Directors expect will be reflected in the audited statutory financial statements when these are completed. SHARE PLACING * Successful placing of 13.149 million new ordinary shares at stg £4.80 per share to raise gross proceeds of US$100 million (stg £63 million); the shares were placed at a premium to the then market price and the net proceeds were used to fund the increased equity participation in Barryroe (from 50% to 80%), to complete the repayment of the Convertible Bond and to contribute to costs of the multi-well drilling programme (April 2012) CONVERTIBLE BOND REPAYMENT * Final tranche of proceeds from sale of AJE Field (offshore Nigeria) received (US$6 million) and used to part-pay down Convertible Bond (April 2012) * Repayment of final balance on Convertible Bond of €29.7 million funded from the proceeds of the April $100 million share placing. During 2012, total bond repayments of €34.3 million were made, repaying the Convertible Bond in full prior to the scheduled maturity (July 2012) SALE OF ONSHORE UK ASSETS * Sale of UK onshore assets (Singleton oil field, Baxter's Copse development project and Burton Down exploration prospect) to I Gas Energy Plc for a consideration of $66 million (February 2013) * Sale proceeds were used to extinguish all remaining corporate debt (c. $44 million), with surplus funds available for investment in drilling activities offshore Ireland FINANCIAL RESULTS - YEAR END 2012 * With the divestment of the UK onshore operations, the financial results for 2012 now classify Singleton and the UK onshore activities as "discontinued operations" and, accordingly, the comparative 2011 results are shown as re-presented. * For the year to 31 December 2012, the Company recorded an operating loss of €5.432 million compared to a loss of €4.079 million in 2011 as a result of higher administration expenses related to an increased level of activity associated with the multi-basin drilling campaign. * The loss for the year from "continuing operations" was lower at €8.233 million compared to a loss of €9.096 million in 2011. The loss from "discontinued operations" amounted to €15.950 million compared to a loss of €4.844 million in 2011. * The loss for the year attributable to equity holders (comprising both "continued operations" and "discontinued operations") amounted to €24.183 million (€13.940 million in 2011). * The loss per share from "continuing operations" was 13.51 cents (19.45 cents in 2011). When combined with the loss per share from "discontinued operations" of 26.17 cents (10.36 cents in 2011), the total loss per share was 39.68 cents compared to a loss of 29.81 cents in 2011. * At 31 December 2012, cash and cash equivalents were €16.831 million, with this figure excluding the receipt of the proceeds from the sale of the UK onshore business to IGas of $66 million, of which approximately $44 million was used to repay back the Deutsche Bank debt facility with the balance made available for general working capital purposes. * Over the past 18 months, the Company has reduced debt levels by c €75 million and the Company is now debt free. Commenting on activity during 2012 and the future drilling plans offshore Ireland for 2013 and beyond, Tony O'Reilly, Chief Executive of Providence Resources P.l.c., said: "2012 was a truly transformational year for Providence, with the most notable event being the successful drilling and well testing on the Barryroe oil field in the Celtic Sea Basin, the first well in our multi-basin drilling campaign offshore Ireland. The Barryroe test results in March came in far above all pre-drill expectations and the subsequent post-well analysis has confirmed the true potential of Barryroe. "In April 2013, the independent Netherland Sewell & Associates, Inc. (NSAI) resource audit further substantiated the scale of Barryroe and this has enabled the Company to take a big step forward in advancing its plans to commercialise Ireland's first oil field. Barryroe has not only exceeded expectations, but has also opened other opportunities in the Celtic Sea, and it has helped to redefine the industry view on the Irish offshore and its' potential. We are now proceeding with the farm-out discussions to attract a suitably qualified partner to advance the project and take it to first oil. "All in all, the success of Barryroe has helped to redefine the industry view on the Irish offshore. It has also had an extremely positive impact on both the asset portfolio and the financial well-being of the Company. The improvement in the financial footing of the Company can be best confirmed by the complete restructuring of the balance sheet over the past 18 months, with assets sales and capital raisings facilitating debt levels to be reduced by approximately €75 million, leaving the Company completely debt free. "Aside from Barryroe, we and our partners are continuing with all the necessary preparations on the balance of our multi-basin drilling programme where a further five wells are planned in the programme. In April 2013, we announced the commencement of drilling operations at the ExxonMobil-operated Dunquin oil/gas prospect in the southern Porcupine Basin. This exploration well, which is one of the deepest wells ever drilled offshore Ireland, is testing a new play concept in the southern Porcupine Basin and will be keenly watched by the industry. Based on the forward plans, results from this well are expected later this summer. "Looking further ahead, we plan to drill two further appraisal projects - Spanish Point in the northern Porcupine Basin and Dragon in St George's Channel Basin. Both fields are similar to Barryroe in that they have previously flowed hydrocarbons and they are now being re-examined availing of today's new technology and pricing environment. Importantly, both fields have had extensive 3D seismic acquired over them and this will be very important for their upcoming appraisal drilling. Notably, leading international independent, Cairn Energy, has just farmed in to the Spanish Point licences in advance of the upcoming drilling. "We also have a further two exploration prospects to be drilled in the Rathlin Basin (Polaris) and the Kish Bank Basin, offshore Dublin. Earlier this year, due to a technical licensing matter, we voluntarily surrendered our foreshore licence over the Kish Bank Basin to allow for new legislation to be put in place by the Irish government. As soon as the new legislation is put in place, we plan to re-apply for a foreshore licence. "We also continue to look at new exploration and appraisal opportunities for future drilling in other basins, such as Drombeg, in the Southern Porcupine Basin, which has already generated significant industry interest, and Newgrange, in the Goban Spur Basin, which is operated by Repsol. Importantly, all of the wells in our multi-basin drilling programme are what we term "pathfinder wells": in other words, by testing any one petroleum play, we have the potential to prove up many adjacent prospects in each of the respective basins. "Partnership has always been a key part of Providence's strategy, and we carry out our drilling programmes with an array of notable co-venture companies, including ExxonMobil, ENI, PETRONAS, Repsol, Chrysaor, First Oil Expro, Sosina, Lansdowne and Atlantic Petroleum and we are very pleased to welcome Cairn Energy Plc into our Spanish Point consortium, where they are taking a 38% equity stake and becoming Operator. All of these partners bring both technical capabilities and financial support, which allow us to move forward with our extensive programme of exploration and drilling activities offshore Ireland. "Providence has always believed in the material hydrocarbon prospectivity of offshore Ireland. As the only Irish independent E&P company actually drilling offshore Ireland, we were very pleased with the success at Barryroe, which has firmly validated this view. Furthermore, in addition to the operational success of the past year, Providence has also completely restructured its balance sheet over the last 18 months and is now entirely debt free. We therefore feel extremely well placed to capitalise on the positive momentum that we have built up in 2012, and to firmly embrace the advances in technology, infrastructure, the fiscal regime and higher oil prices in order to unlock the hydrocarbon potential offshore Ireland". Tony O'Reilly 8^th May 2013 Chief Executive Contacts: Providence Resources P.l.c. Tel: +353 1 219 4074 Tony O'Reilly, Chief Executive John O'Sullivan, Technical Director Powerscourt Tel: +44 207 250 1446 Lisa Kavanagh / Rob Greening Murray Consultants Tel: +353 1 498 0300 Pauline McAlester Cenkos Securities Plc Tel: +44 207 397 8900 Adrian Hargraves / Nick Wells J&E Davy Tel: +353 1 679 6363 Eugenee Mulhern Liberum Tel: +44 203 100 2000 Clayton Bush TERMS USED IN THIS ANNOUNCEMENT: CPR - Competent Person's Report BBO - Billion Barrels of Oil MMBO - Million Barrels of Oil MMBOE - Million Barrels of Oil Equivalent BCF - Billion Cubic Feet of Gas BOPD - Barrels of Oil Per Day BOEPD - Barrels of Oil Equivalent per Day STOIIP - Stock Tank Original Oil in Place MMSCFGD - Million Standard Cubic Feet of Gas per Day ABOUT PROVIDENCE Providence Resources Plc is an Irish based oil & gas exploration and appraisal company with a portfolio of appraisal and exploration assets offshore Ireland and the U.K. The Company is currently leading a circa $500 million multi-year drilling programme on a number of exploration/development wells over 6 different basins offshore Ireland, representing the largest drilling campaign ever carried out offshore Ireland www.providenceresources.com. ANNOUNCEMENT This announcement has been reviewed by John O'Sullivan, Technical Director, Providence Resources P.l.c. John holds a B.Sc. in Geology from University College Cork, Ireland, an M.Sc. in Applied Geophysics from the National University of Ireland, Galway and a M.Sc.in Technology Management from The Smurfit School of Business at University College Dublin. John is presently working part-time on a PhD dissertation at Trinity College, Dublin. John has worked in the offshore business for 20 years and is a fellow of the Geological Society of London and member of The Petroleum Exploration Society of Great Britain. 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 P.l.c. Condensed consolidated income statement For the year ended 31 December 2012 Notes Year ended 31 Year ended 31 December December 2012 2011 Audited Audited €'000 €'000 (re-presented*) Revenue - continuing operations 1 - - Administration expenses (3,937) (1,850) Pre-licence expenditure - (117) Loss on disposal of asset - (381) Impairment of exploration, (1,495) (1,731) evaluation and production assets Operating loss (5,432) (4,079) Finance income 494 134 Finance expense 3 (3,295) (5,151) Loss before income tax (8,233) (9,096) Income tax expense - - Loss for the year from continuing (8,233) (9,096) operations Loss from discontinued operations 2 (15,950) (4,844) (net of income tax) Loss for the year (24,183) (13,940) Loss per share (cent) - continuing operations Basic loss per share 8 (13.51) (19.45) Diluted loss per share 8 (13.51) (19.45) Loss per share (cent) - discontinued operations Basic loss per share (26.17) (10.36) Diluted loss per share (26.17) (10.36) Loss per share (cent) - total Basic loss per share (39.68) (29.81) Diluted loss per share (39.68) (29.81) *The comparative income statement has been re-presented as if the operations discontinued during the current year had been discontinued from the start of the comparative year. PROVIDENCE RESOURCES P.l.c. Consolidated statement of comprehensive income For the year ended 31 December 2012 Year ended 31 Year ended 31 December 2012 December 2011 Audited Audited €'000 €'000 Loss for the financial year (24,183) (13,940) Foreign exchange translation differences (97) (1,533) Net change in fair value of cash flow hedges 2,305 1,342 transferred to income statement Cashflow hedges - net fair value loss - (2,449) - related deferred 3,407 2,057 tax Total income and expense recognised in other 5,615 (583) comprehensive income Total comprehensive expense (18,568) (14,523) The total comprehensive 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 31 December 2012 Notes 31 December 2012 31 December 2011 Audited Audited €'000 €'000 Assets Exploration and evaluation assets 4 67,076 36,214 Development and production assets 5 - 46,159 Property, plant and equipment 42 32 Derivative instruments - 5,111 Deferred tax - 5,887 Total non-current assets 67,118 93,403 _______ _______ Trade and other receivables 4,005 6,626 Derivative instruments - 513 Restricted cash - 17,491 Cash and cash equivalents 16,831 18,563 Assets classified as held for sale 43,852 - Total currents assets 64,688 43,193 _______ _______ Total assets 131,806 136,596 Equity Share capital 6 18,136 16,668 Capital conversion reserve fund 623 623 Share premium 6 209,975 130,548 Singleton revaluation reserve 2,471 2,650 Convertible bond - equity portion - 2,333 Foreign currency translation reserve (3,752) (3,655) Share based payment reserve 4,942 4,368 Warrant reserve - 5,641 Cashflow hedge reserve - (2,305) Retained deficit (164,297) (148,994) Total equity attributable to equity 68,098 7,877 holders of the Company Liabilities Loans and borrowings 7 - 30,033 Decommissioning provision 4,738 5,165 Deferred tax - 24,091 Derivative instruments - - Total non-current liabilities 4,738 59,289 Trade and other payables 23,445 27,651 Loans and borrowings 7 - 33,447 Loans and borrowings - prepaid swap 7 - 8,332 Liabilities classified as held sale 35,525 - Total current liabilities 58,970 69,430 Total liabilities 63,708 128,719 Total equity and liabilities 131,806 136,596 PROVIDENCE RESOURCES P.l.c. Consolidated statement of changes in Equity For the year ended 31 December 2012 Share Capital Share Singleton Foreign Share Warrants Convert-ible Cash-flow Retained Total Capital Conversion Premium Re-valuation Currency Based €'000 Bond - Hedge Deficit €'000 €'000 Reserve €'000 Reserve Translation Payment equity Reserve €'000 Fund €'000 Reserve Reserve portion €'000 €'000 €'000 €'000 €'000 At 1 January 15,058 623 86,918 2,919 (2,122) 3,537 5,641 2,944 (3,255) (136,001) (23,738) 2011 Loss for - - - - - - - - - (13,940) (13,940) financial year Currency - - - - (1,533) - - - - - (1,533) translation Cashflow - - - - - - - - 950 - 950 hedge Total 15,058 623 86,918 2,919 (3,655) 3,537 5,641 2,944 (2,305) (149,941) (38,261) comprehensive income Transactions with owners, recorded directly in equity Shares issued 1,610 - 43,630 - - - - - - - 45,240 in year Share based - - - - - 898 - - - - 898 payments Share options - - - - - (67) - - - 67 - forfeited in year Transfer from - - - (269) - - - - - 269 - Singleton revaluation reserve Bond - - - - - - - (611) - 611 - redemption At 31 16,668 623 130,548 2,650 (3,655) 4,368 5,641 2,333 (2,305) (148,994) 7,877 December 2011 At 1 January 16,668 623 130,548 2,650 (3,655) 4,368 5,641 2,333 (2,305) (148,994) 7,877 2012 Loss for - - - - - - - - - (24,183) (24,183) financial year Currency - - - - (97) - - - - - (97) translation Cashflow - - - - - - - - 2,305 - 2,305 hedge Total 16,668 623 130,548 2,650 (3,752) 4,368 5,641 2,333 - (173,177) (14,098) comprehensive income Transactions with owners, recorded directly in equity Shares issued 1,314 - 72,415 - - - - - - - 73,729 in year Share based - - - - - 1,301 - - - - 1,301 payments Share options 14 - 252 - - (238) - - - 238 266 exercised in year Share options - - - - - (489) - - - 489 - forfeited in year Transfer from - - - (179) - - - - - 179 - Singleton revaluation reserve Exercise of 140 - 6,760 - - - (5,641) - - 5,641 6,900 warrants Bond - - - - - - - (2,333) - 2,333 - redemption At 31 18,136 623 209,975 2,471 (3,752) 4,942 - - - (164,297) 68,098 December 2012 PROVIDENCE RESOURCES P.l.c. Consolidated statement of cash flows For the year ended 31 December 2012 Year ended 31 Year ended 31 December 2012 December 2011 Audited Audited €'000 €'000 Cash flows from operating activities Loss before income tax for year - continuing (8,233) (9,096) operations Loss before income tax for the year - discontinued (36,524) (341) operations (44,757) (9,437) Adjustments for: Depletion and depreciation 2,755 2,634 Loss on disposal - 381 Abandonment provision 34 - Impairment of exploration and evaluation assets 1,495 1,731 Impairment of production and development assets 32,357 4,904 Finance income (494) (134) Finance expense 16,369 5,378 Equity settled share based payment charge 1,247 898 Foreign exchange (507) 2,307 Change in trade and other receivables (3,782) 1,579 Change in restricted cash 16,581 (14,971) Change in trade and other payables (2,696) 18,811 Interest paid (6,712) (6,798) Tax paid - - Hedge repayments (297) (7,714) Net cash inflow / (outflow) from operating 11,593 (431) activities Cash flows from investing activities Interest received 494 134 Acquisition of exploration and evaluation assets (31,755) (27,576) Acquisition of development and production assets (27,202) (8,889) Acquisition of property, plant and equipment (38) (38) Disposal of development and production assets - 4,610 7,759 AJE Disposal of development and production assets - - 10,475 Triangle Net cash from investing activities (53,891) (18,135) Cash flows from financing activities Proceeds from issue of share capital 84,797 47,662 Share capital issue costs (3,902) (2,422) Repayment of loans and borrowings (44,273) (56,540) Proceeds from drawdown of loans and borrowings 4,077 39,033 Net cash from financing activities 40,699 27,733 Net (decrease) / increase in cash and cash (1,599) 9,167 equivalents Cash and cash equivalents at 1 January 18,563 9,171 Effect of exchange rate fluctuations on cash and (133) 225 cash equivalents Cash and cash equivalents at 31 December 16,831 18,563 PROVIDENCE RESOURCES P.l.c. Note 1 Segment Reporting All revenue is generated from assets in the UK, and is included in discontinued operations. Year ended 31 Year ended 31 December 2012 December 2011 Audited Audited €'000 €'000 Segment net loss for the period Republic of Ireland - exploration assets (1,495) (1,848) Africa - production and development assets - (422) Corporate expenses (3,937) (1,809) Operating loss (5,432) (4,079) Segment assets UK - production and development assets- classified 43,852 61,943 as held for sale UK - exploration assets 933 - Republic of Ireland - exploration assets 69,129 67,306 Africa - production and development assets - 4,637 US 155 91 Group assets 17,737 2,619 Total assets 131,806 136,596 Segment Liabilities UK - production and development assets - (35,525) (67,201) classified as held for sale Republic of Ireland - exploration (27,183) (23,747) US (252) (1,343) Group liabilities (748) (36,428) Total Liabilities (63,708) (128,719) Capital Expenditure UK - producing assets - classified as held for 27,202 7,927 sale UK - exploration assets 774 - 27,976 7,927 Republic of Ireland - exploration assets 30,981 27,805 Property, plant and equipment 38 38 Africa - development and production assets - 245 Total Capital Expenditure 58,995 36,015 Depletion and decommissioning charge UK - producing assets (discontinued operations) 2,727 2,505 Republic of Ireland - exploration assets 34 - 2,761 2,505 Impairment charge Republic of Ireland - exploration assets 1,495 1,731 UK - development and production assets 32,357 4,904 (discontinued operations) 33,852 6,635 PROVIDENCE RESOURCES P.l.c. Note 2 Discontinued Operations Held for sale assets and liabilities UK disposal Assets €'000 Development and production assets 38,986 Derivative instruments 2,163 Trade and other receivables 1,793 Cash and cash equivalents 910 43,852 Liabilities Loans and borrowings 31,725 Decommissioning provision 869 Deferred tax 1,421 Trade and other payables 1,510 35,525 Year ended 31 Year ended 31 December 2012 December 2011 Audited Audited €'000 €'000 Results of discontinued operations Revenue 15,642 13,752 Cost of sales (5,455) (4,055) Gross profit 10,187 9,697 Administration expenses (1,280) (683) Impairment of assets (32,357) (4,904) Results from operating activities - UK disposal (23,450) 4,110 Finance expense (13,074) (227) Results from operating activities before tax - UK (36,524) 3,883 disposal Income tax credit/(charge) 20,574 (4,503) Results from operating activities after tax - UK (15,950) (620) disposal US disposal (see below) - (4,224) Total (15,950) (4,844) Cashflow from discontinued operations Net cash from operating activities 9,726 794 Net cash from investing activities (27,202) (8,889) Net cash from financing activities (5,931) 35,113 Net cash flows for the period (23,407) 27,018 US disposal - 2011 €'000 Expenses, being loss from operating activities (2,421) Loss on sale (1,803) (4,224) Related cash flows were €'000 Net cash from operating activities 279 Net cash from investing activities 16 295 Earnings per share from discontinued operations 2012 2011 € cent € cent Basic loss per share (26.17) (10.36) Diluted loss per share (26.17) (10.36) PROVIDENCE RESOURCES P.l.c. Note 3 Finance Expense Year ended 31 Year ended 31 December 2012 December 2011 Audited Audited €'000 €'000 Recognised in income statement: Interest expense on financial liabilities - 3,021 4,781 measured at amortised cost Unwinding of discount on decommissioning provision 274 370 Total 3,295 5,151 Recognised directly in other comprehensive income Foreign currency differences on foreign operations (97) (1,533) Effective portion of change in fair value of - (2,449) cashflow hedge Net change in fair value of cashflow hedge 2,305 1,342 transferred to income statement Total finance expense 2,208 (2,640) PROVIDENCE RESOURCES P.l.c. Note 4 Exploration and evaluation assets Republic of Ireland UK Africa Total €'000 €'000 €'000 €'000 Cost and book value At 1 January 2011 10,140 - - 10,140 Additions 32,972 - - 32,972 Administration expenses 1,007 - 37 1,044 Cash calls received in year (6,440) - - (6,440) Impairment charge (1,731) - - (1,731) Increase in abandonment costs 266 - - 266 Transfer to development and - - (37) (37) production assets At 31 December 2011 36,214 - - 36,214 At 31 December 2011 36,214 - - 36,214 Additions 35,344 551 - 35,895 Cash calls received in year (5,507) - - (5,507) Administration expenses 1,144 223 - 1,367 Impairment charge (1,495) - - (1,495) Increase in abandonment costs 602 - - 602 At 31 December 2012 66,302 774 - 67,076 PROVIDENCE RESOURCES P.l.c. Note 5 Development and production assets UK US Africa Total €'000 €'000 €'000 €'000 Cost At 1 January 2011 52,995 26,806 12,436 92,237 Additions 7,590 - 208 7,798 Transfer from exploration and evaluation - - 37 37 assets Administration expenses 337 - - 337 Disposed of in year - (26,806) (12,681) (39,487) Exchange rate adjustment 911 - - 911 At 31 December 2011 61,833 - - 61,833 Additions 27,144 - - 27,144 Administration expenses 58 - - 58 Transfer to held for sale assets (90,282) - - (90,282) Exchange rate adjustment 1,247 - - 1,247 At 31 December 2012 - - - - Depletion At 1 January 2011 8,024 26,806 - 34,830 Charge for the year 2,505 - - 2,505 Impairment of assets 4,904 - - 4,904 Eliminated on disposal - (26,806) - (26,806) Exchange rate adjustment 241 - - 241 At 31 December 2011 15,674 - - 15,674 Charge for the period 2,727 - - 2,727 Impairment of assets 32,357 - - 32,357 Transfer to held for sale assets (51,296) - - (51,296) Exchange rate adjustment 538 - - 538 At 31 December 2012 - - - - Net book value At 31 December 2012 - - - - At 31 December 2011 46,159 - - 46,159 PROVIDENCE RESOURCES P.l.c. Note 6 Share Capital and Share Premium Number Authorised: '000 €'000 At 1 January and 31 December 2012 Deferred shares of €0.011 each 1,062,442 11,687 Ordinary shares of €0.10 each 123,131 12,313 Number Share Capital Share Premium Issued: 000's €'000 €'000 Deferred shares of €0.011 each 1,062,442 11,687 5,691 Ordinary share of €0.10 each 33,712 3,371 81,227 At 1 January 2011 33,712 15,058 86,918 Ordinary shares issued 16,097 1,610 46,052 Share issue costs - - (2,422) At 31 December 2011 49,809 16,668 130,548 Ordinary share issued 13,149 1,314 76,317 Share issue costs - - (3,902) Share options exercised in year 140 14 252 Warrants exercised in year 1,400 140 6,760 At 31 December 2012 64,498 18,136 209,975 PROVIDENCE RESOURCES P.l.c. Note 7 Loans and Borrowings Deutsche Deutsche BNP BNP Loan Convertible Total bank loan bank loan Revolving Fees Bond facility fees Facility €'000 €'000 €'000 €'000 €'000 €'000 At 1 January 2011 - - 47,582 (1,597) 39,802 85,787 Drawn down in year 39,033 (808) - - - 38,225 Repaid during year (3,112) - (44,866) - (7,735) (55,713) Written off to - 54 - 1,597 1,380 3,031 income statement Foreign exchange 3,230 (32) (2,716) - - 482 difference At 31 December 39,151 (786) - - 33,447 71,812 2011 Repaid during (10,008) - - - (34,265) (44,273) period Drawn down in year 4,077 - - - - 4,077 Written off to - 135 - - 818 953 income statement Foreign exchange (825) (19) - - - (844) difference Transfer to held (32,395) 670 - - - (31,725) for sale liabilities At 31 December - - - - - - 2012 PROVIDENCE RESOURCES P.l.c. Note 8 Earnings per share 31 December 2012 31 December 2011 Audited Audited Loss attributable to equity holders of the (8,233) (9,096) company from continuing operations (€'000) The basic weighted average number of ordinary shares in issue In issue at beginning of year ('000s) 49,809 33,712 Adjustment for shares issued in year ('000s) 11,145 13,054 Weighted average number of ordinary shares 60,953 46,766 ('000s) Basic loss per share (cent) - continuing (13.51) (19.45) operations Diluted loss per share (cent) - continuing (13.51) (19.45) operations There is no difference between the loss per ordinary share and the diluted loss per ordinary share for the current period as all potentially dilutive ordinary shares outstanding are anti-dilutive. PROVIDENCE RESOURCES P.l.c. Note 9 Related party transactions a.Mr. Tony O'Reilly Jnr, has, through Kildare Consulting Limited, a company beneficially owned by him, a contract for the provision of service to the company outside the Republic of Ireland effective 1 September 2011. The amount paid under the contract in the year ended 31 December 2012 was €650,250. The contract is of two years duration and is subject to one year's notice period. PROVIDENCE RESOURCES P.l.c. Note 10 Commitments The Group has capital commitments of approximately €13.5m to contribute to its share of costs of exploration and evaluation activities during 2013. ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Providence Resources plc via Thomson Reuters ONE HUG#1700232
Providence Resources plc : Preliminary Results for the year ended 31st December 2012
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