Providence Resources plc: Providence Resources P.l.c : Preliminary Results for the year ended 31st December 2013

Providence Resources plc: Providence Resources P.l.c : Preliminary Results for
                      the year ended 31st December 2013

27^th June 2014
Embargo: 7am

                         PROVIDENCE RESOURCES P.l.c.
                       ("Providence" or the "Company")
                             Preliminary Results
                    for the year ended 31^st December 2013

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 2013.

OPERATIONAL SUMMARY

Throughout 2013, the Company has continued to focus on progressing the
multi-well drilling programme offshore Ireland. This is the largest and most
comprehensive drilling programme ever undertaken offshore Ireland,
representing an investment of over $500 million by Providence and its
partners. The programme covers a range of exploration and
appraisal/development wells, spread across six different basins. Two wells,
Barryroe (2012) and Dunquin (2013), have already been completed and pre-drill
operations and planning are underway for the remaining four wells to be
drilled at Spanish Point, Dragon, Polaris and Kish Bank.

During 2013, post well analysis of the Barryroe well was completed, with the
most notable out turns being the publication of the Netherland, Sewell &
Associates, Inc ("NSAI") resource audit (CPR) on Barryroe, the results from
the newly processed 3D seismic data, the announcement of the phased
development programme for Barryroe and the launch of the industry-wide farm
out campaign, where the Company is currently in negotiations with a number of
parties. 

In July 2013, the Dunquin North exploration well confirmed the presence of an
active oil-prone petroleum system, which has opened up the petroleum
prospectivity of the southern Porcupine Basin in general, and the Dunquin
South and Drombeg prospects, in particular.

The Company further consolidated its acreage portfolio offshore Ireland,
through competitive applications, resulting in the award of the Silverback
Licensing Option in the South Celtic Sea Basin and the conversion of the
Spanish Point South, Drombeg and Newgrange Licensing Options into Frontier
Exploration Licences. Applications were also made for Lease Undertakings for
the Helvick, Hook Head and Dunmore oil discoveries. 

The Company has continued to attract new partners to offshore Ireland, most
notably with the arrival of Cairn Energy as Operator at Spanish Point and ABT
Oil and Gas agreeing a staged farm in to Helvick and Dunmore.

In June 2014, the Company entered into a new financing facility for US$ 24
million with Melody Business Finance LLC. This facility, which matures in June
2015, provides additional general working capital to finance the forward
programme of the Company.

HIGHLIGHTS

APPRAISAL ASSETS

Barryroe Oil Project, North Celtic Sea Basin (PVR 80%)
  * Publication of NSAI Competent Person's Report
        *    2C Recoverable Resources of 346 MMBOE
                 *       311 MMBO & 207 BCF gas in solution (or 34.5 MMBOE)
        *    2C Financials (after tax) attributable to Providence
                 *       Net contingent cash-flow of $10.6 billion
                 *       NPV 10% of $2.6 billion
        *Final reprocessed 3D seismic data received
        *Phased Development Outline
                 *Targeting an initial peak of 30,000 BOPD
        *Increase in the area of SEL 1/11 by c. 160 km^2 through a licence
          extension
        *Commencement of industry-wide farm-out process
                 *Currently in negotiations with a number of parties

Spanish Point Gas/Oil Project, Northern Porcupine Basin (PVR 32%)

  *Farm in by Cairn Energy Plc, who assumed an operated 38% equity interest
  *Appraisal drilling to be carried out on Spanish Point, targeting up to 200
    MMBOE REC

   *In accordance with its original farm-out with Chrysaor, Providence has a
     capped exposure of up to $20 million

Dragon Gas Project, St George's Channel (PVR 100%)

  *Discussions ongoing with UK/Irish government regulators on potential field
    development, including the consent process for the drilling of a
    development well
  *3D PSDM seismic reprocessing commenced as part of work programme leading
    to Final Investment Decision (FID)
  *Commercial discussions with potential partners ongoing

Helvick/Dunmore Oil Discoveries, North Celtic Sea Basin (PVR 62.5% and 72.5%,
respectively)

  *Application made for Lease Undertakings
  *Farm out (on staged basis) agreed with ABT Oil and Gas to advance these
    projects to commercialisation

Hook Head Oil Discovery, North Celtic Sea Basin (PVR 72.5%)

  *Application made for a Lease Undertaking

EXPLORATION ASSETS

Dunquin Oil Prospect, Southern Porcupine Basin (PVR 16%)

  *Completion of drilling of Dunquin North well
  *Massive over-pressured, high porosity carbonate reservoir encountered
    close to prognosis, with interpreted 144' residual oil column
  *Second phase of Frontier Exploration Licence 3/04 extended by 12 months to
    November 2014 to allow further studies

Cuchulain Oil Prospects, Southern Porcupine Basin (PVR 5%)

  *Incorporation of recent 44/23-1 Dunquin North well data into subsurface
    geological modelling

Drombeg Oil Prospect, Southern Porcupine Basin (PVR 80%)

  *Conversion of Drombeg Licensing Option 11/9 into Frontier Exploration
    Licence 2/14
  *Agreement to shoot a major 3D seismic survey over the Drombeg prospect as
    part of Polarcus' multi-client 2014 programme

Newgrange Oil Prospect, Goban Spur Basin (80%)

  *Conversion of Newgrange Licensing Option 11/11 into Frontier Exploration
    Licence 6/14 with a 2D seismic survey as the principal element of the
    forward work programme

Spanish Point South, Oil & Gas Prospects, Northern Porcupine Basin (PVR 32%)

  *Conversion of Licencing Option 11/2 into Frontier Exploration Licence 1/14
    with a 3D seismic survey as the principal element of the forward work
    programme

Silverback Oil Prospect, South Celtic Sea Basin (PVR 100%)

  *Award of new Licensing Option 13/4
  *Initial seismic interpretation and mapping of existing vintage 2D data has
    identified a number of structures, including a significant mid-basinal
    Mesozoic anticlinal closure, named 'Silverback'
  *Petroleum systems analysis suggest that this structure may be prospective
    for the stacked entrapment of hydrocarbons in possible Lower Triassic,
    Lower Jurassic and Lower Cretaceous reservoir intervals

Polaris Oil Prospect, Rathlin Basin (PVR 100%)

  *Subsurface mapping indicates that the Polaris structure is geologically
    on-trend with the recent Ballinlea-1 oil discovery onshore Northern
    Ireland
  *Five anomalies have been identified in the offshore acreage, based on Full
    Tensor Gradiometry (FTG) Data, with the Polaris oil prospect in the
    Rathlin Sound highlighted as the main target
  *A further Ballinlea oil appraisal well with EWT programme is planned for
    early 2015 by the Operator and the results of this should significantly
    de-risk the Polaris prospect

Kish Bank Oil Prospect, Kish Bank Basin (PVR 50%)

  *Continual work with regulators on the consent for the drilling of a well
    on the Kish Bank oil prospect.As would be standard, all planned drilling,
    site and seismic activities are based on relevant permit requirements and
    appropriate equipment availability/procurement.

FINANCIAL RESULTS - YEAR END 2013

  *Following the divestment of the UK onshore operations in 2012 and sale
    completion in February 2013, the Company has revenue for two months, which
    is classified in discontinued operations.
  *For the year to 31 December 2013, the Company recorded an operating loss
    of €7.230 million compared to a loss of €5.432 million in 2012, as a
    result of higher administration expenses directly related to an increased
    level of activity across its portfolio.
  *The loss for the year attributable to equity holders was reduced to €2.797
    million (loss of €24.184 million in 2012), with a net credit of €4.971
    million in 2013 attributed to the profit from the sale of the UK onshore
    operations (net of income tax).
  *The loss per share was 4.33 cents compared to a loss of 39.68 cents in
    2012.
  *At 31 December 2013, cash and cash equivalents were €8.998 million.
  *In June 2014, the Company entered into a US$ 24 million general working
    capital facility with Melody Business Finance LLC, a US based financial
    provider.

Commenting on activity during 2013 and the future plans offshore Ireland for
2014 and beyond, Tony O'Reilly, Chief Executive of Providence, said:

"2013 has been a very busy year for the Company with plenty of activity across
the portfolio of assets.

"Following the Company's drilling success at Barryroe in 2012, the Company's
main focus has been on the commissioning of a third party resource audit, its
publication and conducting a farm-out process. Through this process, we are
working to affiliate with an appropriate strategic partner to take the field
through detailed appraisal and, ultimately, into production.

"Overall, the farm out and M&A market in the oil and gas sector remains
challenging, with caution evident across the sector. The majority of
world-wide oil and gas investments and M&A deals have been concluded either in
the North American shale gas and oil sector or in the East African region with
very few major farm out deals being completed in the North-West European
sector over the past year.

"In light of the marked reduction in capital expenditure programmes by major
industry players, the Company revised its field development plans, with an
initial focus on an early staged development programme for Barryroe building
up to full field development (with projected ultimate production rates of up
to 100,000 BOPD). This phased development programme is targeting an initial
production profile of 30,000 BOPD, with substantially reduced initial capital
expenditure and an accelerated timeline to get to first oil.

"This phased approach has been well received and the Company is now in
advanced discussions with a select number of international E&P companies on
terms. The Company is encouraged by these active negotiations, but until a
deal is concluded, there can be no certainty on timing for a mutually
acceptable agreement or that an agreement will be reached.

"In addition to work on Barryroe, activity continued on the preparatory work
for the remaining four wells in our multi-basin drilling programme. The next
planned drilling activity is the Spanish Point appraisal well, operated by
Cairn, which is targeting up to 200 MMBOE REC. This is to be followed by a gas
appraisal and development well at Dragon and, subsequently, oil exploration
wells at Polaris and Kish Bank.

"Whilst the results from the Dunquin North well are still the subject of
extensive post well studies, we are very encouraged by the data received so
far. As this was the first well to be drilled in the south Porcupine Basin,
which is an area the size of the northern North Sea, we believe that the
confirmation of a residual oil column in a high porosity massive carbonate
reservoir system has acted as both a significant play and basin opener. This
has major implications for the other carbonate build up contained within
Frontier Exploration Licence 3/04, Dunquin South, and further work is being
carried out to better evaluate this very large prospect. Importantly, the
confirmation of a working oil-prone petroleum system in the Porcupine Basin
has vindicated our licensing strategy, where we were the first mover when we
secured acreage back in 2004.

"Kosmos Energy, a recent entrant to Ireland, who completed a major 3D survey
in the south Porcupine Basin, has stated that they see the potential for large
fan play systems in this area, similar to the Drombeg prospect operated by
Providence. In addition, the giant Statoil-operated Bay du Nord oil discovery
in the Flemish Pass Basin, offshore Canada, which is considered to have been
geologically on-trend with the south Porcupine Basin, adds further impetus for
future exploration in the area. As the largest acreage holder in the southern
Porcupine Basin, with interests in Dunquin, Cuchulain, Newgrange and Drombeg,
we are exceptionally well placed to capitalise on this growing industry
interest in an area now being referred to as the 'North Atlantic Jurassic oil
source-rock superhighway'.

"As part of its strategy to open up new basins, the Company expanded its
acreage portfolio with the award of a Licensing Option in the South Celtic
Sea, containing the Silverback oil prospect, a very large mid-basinal Mesozoic
anticlinal closure. Standard Exploration Licence 1/11, which contains the
Barryroe discovery, was increased in size by an additional 160 km^2 to cater
for the potential increase in the size of the field. The Company also
converted its Spanish Point South, Drombeg and Newgrange Licensing Options
into Frontier Exploration Licences and is now planning the acquisition of new
seismic over these areas. During 2013, the Company concluded a staged farm out
with ABT Oil and Gas covering the Helvick and Dunmore oil discoveries. This
farm out deal will see these marginal oil accumulations progressed towards
development using newly emerging and innovative low cost production
technologies.

"The recent securing of a new bridge financing facility of US$ 24 million was
another significant development for Providence as it provides the Company with
the additional working capital for its operations, without having to access
the equity markets. This is an important step forward, given the current
values for oil and gas equities (as listed on London's AIM) being at
historically low values based on NAV metrics.

"As the most active operator offshore Ireland, partnerships has always been a
key part of our strategy. Today we work with a number of leading international
co-venture companies - including ExxonMobil, ENI, PETRONAS and Repsol - and
this year we were pleased to welcome Cairn Energy Plc into our Spanish Point
consortium and ABT Oil and Gas into Helvick and Dunmore. These top tier
partners bring both technical capabilities and financial support, which allow
us to move forward with our extensive programme. We fully expect to add new
companies to our family of international partners in the future. The arrival
of other companies, such as Woodside and Kosmos, to offshore Ireland during
2013 was another positive development for the industry, which we hope will
lead to more drilling activity offshore Ireland.

"Ireland's offshore oil and gas sector is growing at the fastest pace in
years. Providence's leadership position, combined with the entry of an
increasing number of new industry players, means that Ireland can now look to
develop a meaningful oil and gas industry. It is notable that 2013/14 has seen
the highest level of licence activity offshore Ireland and this obviously
bodes well for the upcoming Atlantic Margin Licensing Round, which was
announced earlier this month. Providence plans to be a major player in this
upcoming licensing round. On the same day, the Irish Government also announced
new fiscal terms for the industry. The clarity and certainty that now exists
in relation to Ireland's fiscal terms will make it easier for international
companies to participate in this upcoming licencing round. We welcome the
Irish Government's decision that the fiscal terms will not be changed for
existing licences.

"Looking ahead, we are optimistic for the prospects for the Irish oil and gas
sector. Providence fully intends to carry on leading the way on behalf of
shareholders in identifying and realising the significant potential that
exists offshore Ireland."

Tony O'Reilly   27^th June 2014
Chief Executive

CONFERENCE CALL
A conference call for investors and analysts will be held at 9am BST today,
Friday 27 June.
Please see below details for the call:

  *Ireland Local Dublin: +353 (0) 1 436 0959
  *Standard International Access: +44 (0) 20 3003 2666
  *UK Toll Free 0808 109 0700
  *Password Providence

To view the presentation sides, please go to www.meetingzone.com/presenter/
and use the following
PIN: 3185546

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
Nick Wells/Max Hartley
J&E Davy                                  Tel: + 353 1 679 6363
Eugenee Mulhern/Anthony Farrell
Liberum                                   Tel: +44 203 100 2000
Clayton Bush
TERMS USED IN THIS ANNOUNCEMENT
MMBO - Million Barrels of Oil
MMBOE - Million Barrels ofOil Equivalent 
BCF - Billion Cubic Feet of Gas
BOPD - Barrels of Oil Per Day

ABOUT PROVIDENCE
Providence Resources Plc is an Irish based oil & gas 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 2013

                                            Notes Year ended 31 Year ended 31
                                                   December 2013 December 2012

                                                      Audited       Audited

                                                       €'000         €'000
Revenue - continuing operations               1                -             -
Administration expenses                                  (6,484)       (3,937)
Pre-licence expenditure                                     (68)             -
Impairment of exploration, and evaluation                (678)       (1,495)
assets
Operating loss                                1          (7,230)       (5,432)
Finance income                                               180           494
Finance expense                               3            (713)       (3,295)
Loss before income tax                                   (7,763)       (8,233)
Income tax expense                                           (5)             -
Loss for the year from continuing                        (7,768)       (8,233)
operations
Profit/(loss) from discontinued operations    2            4,971      (15,950)
(net of income tax)
Loss for the financial year                              (2,797)      (24,183)
Loss per share (cent) - continuing
operations
Basic loss per share                          8          (12.03)       (13.51)
Diluted loss per share                        8          (12.03)       (13.51)
Earnings/(loss) per share (cent) -
discontinued operations
Basic earnings/(loss) per share               8             7.70       (26.17)
Diluted profit/(loss) per share               8             7.70       (26.17)
Loss per share (cent) - total
Basic loss per share                          8           (4.33)       (39.68)
Diluted loss per share                        8           (4.33)       (39.68)

The total loss for the year is entirely attributable to equity holders of the
Company.

PROVIDENCE RESOURCES P.l.c.

Consolidated statement of comprehensive income

For the year ended 31 December 2013

                                                   Year ended 31 Year ended 31
                                                   December 2013 December 2012

                                                      Audited       Audited

                                                       €'000         €'000
Loss for the financial year                              (2,797)      (24,183)
Continuing operations
OCI items that can be reclassified into profit and
loss
Foreign exchange translation differences                   1,426          (97)
Net change in fair value of cash flow hedges                   -         2,305
transferred to income statement
Cashflow hedges - net fair value loss                          -             -
 - related deferred               -         3,407
tax
Total income recognised in other comprehensive             1,426         5,615
income from continuing operations
Total comprehensive expense for the year                 (1,371)      (18,568)

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 2013

                                       Notes 31 December 2013 31 December 2012

                                                 Audited          Audited

                                                  €'000            €'000
Assets
Exploration and evaluation assets        4             80,089           67,076
Development and production assets        5                  -                -
Property, plant and equipment                              35               42
Deferred tax                                                -                -
Total non-current assets                               80,124           67,118
                                                      _______          _______
Trade and other receivables                             2,891            4,005
Restricted cash                                             -                -
Cash and cash equivalents                               8,998           16,831
Assets classified as held for sale       2                  -           43,852
Total currents assets                                  11,889           64,688
                                                      _______          _______
Total assets                                           92,013          131,806
Equity
Share capital                            6             18,151           18,136
Capital conversion reserve fund                           623              623
Share premium                            6            210,230          209,975
Singleton revaluation reserve                               -            2,471
Convertible bond - equity portion                           -                -
Foreign currency translation reserve                    2,386          (3,752)
Share based payment reserve                             5,382            4,942
Warrant reserve                                             -                -
Cashflow hedge reserve                                      -                -
Retained deficit                                    (165,950)        (164,297)
Total equity attributable to equity                    70,822           68,098
holders of the Company
Liabilities
Loans and borrowings                     7                  -                -
Decommissioning provision                               5,105            4,738
Deferred tax                                                -                -
Total non-current liabilities                           5,105            4,738
Trade and other payables                               16,086           23,445
Loans and borrowings                     7                  -                -
Loans and borrowings - prepaid swap      7                  -                -
Liabilities classified as held sale      2                  -           35,525
Total current liabilities                              16,086           58,970
Total liabilities                                      21,191           63,708
Total equity and liabilities                           92,013          131,806

PROVIDENCE RESOURCES P.l.c.

Consolidated statement of changes in Equity

For the year ended 31 December 2013

                      Capital
                       Con-           Singleton   Foreign    Share           Con-vertible
                      version  Share     Re-     Currency    Based              Bond -    Cashflow
               Share  Reserve  Prem-  valuation Translation Payment             equity     Hedge   Retained
              Capital  Fund     ium    Reserve    Reserve   Reserve Warrants   portion    Reserve   Deficit   Total
               €'000   €'000   €'000    €'000      €'000     €'000   €'000      €'000      €'000     €'000    €'000
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
Total
comprehensive
income
Loss for            -       -       -         -           -       -        -            -        -  (24,183) (24,183)
financial
year
Currency            -       -       -         -        (97)       -        -            -        -         -     (97)
translation
Cashflow            -       -       -         -           -       -        -            -    2,305         -    2,305
hedge
Total               -       -       -         -        (97)       -        -            -    2,305  (24,183) (21,975)
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
At 1 January   18,136     623 209,975     2,471     (3,752)   4,942        -            -        - (164,297)   68,098
2013
Total
comprehensive
income
Loss for            -       -       -         -           -       -        -            -        -   (2,797)  (2,797)
financial
year
Currency            -       -       -         -       1,426       -        -            -        -         -    1,426
translation
Cashflow            -       -       -         -           -       -        -            -        -         -        -
hedge
Total               -       -       -         -       1,426       -        -            -        -   (2,797)  (1,371)
comprehensive
income
Transactions
with owners,
recorded
directly in
equity
Shares issued       -       -       -         -           -       -        -            -        -         -        -
in year
Share based         -       -       -         -           -   1,584        -            -        -         -    1,584
payments
Share options      15       -     255         -           -       -        -            -        -         -      270
exercised in
year
Share options       -       -       -         -           -   (217)        -            -        -       217        -
forfeited in
year
Share options       -       -       -         -           -   (927)        -            -        -       927        -
lapsed in
year
Reclassified        -       -       -   (2,471)       4,712       -        -            -        -         -    2,241
to gain on
disposal
At 31          18,151     623 210,230         -       2,386   5,382        -            -        - (165,950)   70,822
December 2013

PROVIDENCE RESOURCES P.l.c.

Consolidated statement of cash flows

For the year ended 31 December 2013

                                                   Year ended 31 Year ended 31
                                                   December 2013 December 2012
                                                      Audited       Audited
                                                       €'000         €'000
Cash flows from operating activities
Loss before income tax for year - continuing             (7,763)       (8,233)
operations
Profit/(loss) before income tax for the year -             4,971      (36,524)
discontinued operations
                                                         (2,792)      (44,757)
Adjustments for:
Depletion and depreciation                                   272         2,755
Gain on sale of discontinued operations                  (6,096)             -
Abandonment provision                                      (379)            34
Impairment of exploration and evaluation assets              678         1,495
Impairment of production and development assets                -        32,357
Finance income                                             (180)         (494)
Finance expense                                            3,455        16,369
Equity settled share based payment charge                 1,584         1,247
Foreign exchange                                             101         (507)
Change in trade and other receivables                      2,907       (3,782)
Change in trade and other payables                       (8,869)       (2,696)
Interest paid                                              (363)       (6,712)
Hedge repayments                                            (33)         (297)
Net cash outflow from operating activities               (9,715)       (4,988)
Cash flows from investing activities
Interest received                                            180           494
Acquisition of exploration and evaluation assets        (13,691)      (31,755)
Acquisition of development and production assets               -      (27,202)
Acquisition of property, plant and equipment                (14)          (38)
Disposal of development and production assets -                -         4,610
AJE
Change in restricted cash                                    910        16,581
Disposal of development and production assets -           16,235             -
Singleton
Net cash from investing activities                         3,620      (37,310)
Cash flows from financing activities
Proceeds from issue of share capital                         270        84,797
Share capital issue costs                                      -       (3,902)
Repayment of loans and borrowings                        (1,565)      (44,273)
Proceeds from drawdown of loans and borrowings                 -         4,077
Net cash from financing activities                       (1,295)        40,699
Net decrease in cash and cash equivalents                (7,390)       (1,599)
Cash and cash equivalents at 1 January                    16,831        18,563
Effect of exchange rate fluctuations on cash and           (443)         (133)
cash equivalents
Cash and cash equivalents at 31 December                   8,998        16,831

PROVIDENCE RESOURCES P.l.c.

Note 1

Operating segments

All revenue is generated from assets in the UK, and is included in
discontinued operations.

                                                   Year ended 31 Year ended 31
                                                   December 2013 December 2012
                                                      Audited       Audited
                                                       €'000         €'000
Segment net loss for the period
Republic of Ireland - exploration assets                   (678)       (1,495)
Corporate expenses                                       (6,552)       (3,937)
Operating loss                                           (7,230)       (5,432)
Segment assets
UK - production assets - discontinued operations               -        43,852
UK - exploration assets                                    1,141           933
Republic of Ireland - exploration assets                  78,948        69,129
US                                                           189           155
Group assets                                              11,735        17,737
Total assets                                              92,013       131,806
Segment Liabilities
UK - production assets - discontinued operations               -      (35,525)
UK - exploration assets                                     (74)             -
Republic of Ireland - exploration assets               (21,047)      (27,183)
US - liabilities                                             (7)         (252)
Group liabilities                                           (63)         (748)
Total Liabilities                                       (21,191)      (63,708)
Capital Expenditure
UK - producing assets - discontinued operations                -        27,202
UK - exploration assets                                      367           774
                                                             367        27,976
Republic of Ireland - exploration assets                  13,324        30,981
Republic of Ireland - property, plant and                     14            38
equipment
Total capital expenditure, net of cash calls              13,705        58,995
Depletion and decommissioning charge
UK - producing assets - discontinued operations                -         2,727
Republic of Ireland - exploration assets                       -            34
                                                               -         2,761
Impairment charge
Republic of Ireland - exploration assets                     678         1,495
UK - development assets - discontinued operations              -        32,357
                                                             678        33,852

PROVIDENCE RESOURCES P.l.c.

Note 2

Discontinued Operations

Held for sale assets and liabilities

UK disposal - 28^th February 2013 and comparative figures as at 31 December
2012.

                                   2013    2012
                                  Audited Audited
Assets                             €'000   €'000
Development and production assets  39,637  38,986
Derivative instruments              1,411   2,163
Trade and other receivables         1,779   1,793
Cash and cash equivalents           1,425     910
                                   44,252  43,852
Liabilities
Loans and borrowings               31,918  31,725
Decommissioning provision             822     869
Deferred tax                        1,733   1,421
Trade and other payables            1,881   1,510
                                   36,354  35,525

Gain on sale of discontinued operations - UK disposal

                                        €'000
Net proceeds received                   17,028
Disposal costs                           (793)
                                        16,235
Net assets disposed of                   7,898
Transfer from revaluation reserve      (2,471)
Transfer from FCTR                       4,712
                                        10,139
Gain on sale of discontinued operation   6,096

PROVIDENCE RESOURCES P.l.c.

Note 2

Discontinued Operations - continued

The gain on sale of discontinued operations - UK disposal

                                       Year ended 31         Year ended 31
                                       December 2013         December 2012
                                          Audited               Audited
                                           €'000                 €'000
Results of discontinued operations
Revenue                                            2,411                15,642
Cost of sales                                      (615)               (5,455)
Gross profit                                       1,796                10,187
Administration expenses                            (179)               (1,280)
Impairment of assets                                   -              (32,357)
Results from operating activities                  1,617              (23,450)
Finance expense                                  (2,742)              (13,074)
Results from operating activities                (1,125)              (36,524)
before tax
Income tax credit/(charge)                             -                20,574
Results from operating activities                (1,125)              (15,950)
after tax
Gain on sale of discontinued                       6,096                     -
operations
Profit / (loss) for the year                       4,971              (15,950)
Cashflows from discontinued
operations
Net cash from operating activities                 1,772                 9,726
Net cash from investing activities                     -              (27,202)
Net cash from financing activities               (1,565)               (5,931)
Net cash flows for the year                          207              (23,407)

The profit/(loss) from discontinued operations is attributable entirely to the
owners of the company. The results for 2013 represent two months of activity.

Earnings per share from discontinued operations

                                      2013    2012
                                    € cent  € cent
Basic earnings / (loss) per share     7.70 (26.17)
Diluted earnings / (loss) per share   7.70 (26.17)

PROVIDENCE RESOURCES P.l.c.

Note 3

Finance Expense

                                                   Year ended 31 Year ended 31
                                                   December 2013 December 2012
                                                      Audited       Audited
                                                       €'000         €'000
Recognised in income statement:
Interest expense on financial liabilities -                    -         3,021
measured at amortised cost
Unwinding of discount on decommissioning provision           713           274
Total                                                        713         3,295
Recognised directly in other comprehensive income
Foreign currency differences on foreign operations         6,138          (97)
Reclassified to gain on disposal                         (4,172)             -
Net change in fair value of cashflow hedge                     -         2,305
transferred to income statement
Total finance expense                                      1,426         2,208

PROVIDENCE RESOURCES P.l.c.

Note 4

Exploration and evaluation assets

                              Republic of Ireland  UK    Total
                                     €'000        €'000  €'000
Cost and book value
At 1 January 2012                          36,214     -  36,214
Additions                                  35,344   551  35,895
Administration expenses                     1,144   223   1,367
Cash calls received in year               (5,507)     - (5,507)
Impairment charge                         (1,495)     - (1,495)
Increase in abandonment costs                 602     -     602
At 31 December 2012                        66,302   774  67,076
At 31 December 2012                        66,302   774  67,076
Additions                                  13,006   127  13,133
Cash calls received in year               (1,199)     - (1,199)
Administration expenses                     1,517   240   1,757
Impairment charge                           (678)     -   (678)
At 31 December 2013                        78,948 1,141  80,089

PROVIDENCE RESOURCES P.l.c.

Note 5

Development and production assets

                                    UK     Total
                                  €'000    €'000
Cost
At 1 January 2012                  61,833   61,833
Additions                          27,144   27,144
Administration expenses                58       58
Transfer to assets held for sale (90,282) (90,282)
Exchange rate adjustment            1,247    1,247
At 31 December 2012                     -        -
Additions                               -        -
Administration expenses                 -        -
Transfer to held for sale assets        -        -
Exchange rate adjustment                -        -
At 31 December 2013                     -        -
Depletion
At 1 January 2012                  15,674   15,674
Charge for the year                 2,727    2,727
Impairment of assets               32,357   32,357
Transfer to assets held for sale (51,296) (51,296)
Exchange rate adjustment              538      538
At 31 December 2012                     -        -
Charge for the period                   -        -
Impairment of assets                    -        -
Transfer to held for sale assets        -        -
Exchange rate adjustment                -        -
At 31 December 2013                     -        -
Net book value
At 31 December 2013                     -        -
At 31 December 2012                     -        -

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         49,809        16,668       130,548
At 1 January 2012                    49,809        16,668       130,548
Ordinary shares issued in year       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
Ordinary shares issued in year            -             -             -
Share issue costs                         -             -             -
Share options exercised in year         151            15           255
At 31 December 2013                  64,649        18,151       210,230

During the year, 0.15 million ordinary shares were issued to employees on the
exercise of share options for a consideration of €0.27 million.

PROVIDENCE RESOURCES P.l.c.

Note 7

Loans and Borrowings

                         Deutsche bank Deutsche bank Convertible Bond  Total
                         loan facility   loan fees
                             €'000         €'000          €'000        €'000
At 1 January 2012               39,151         (786)           33,447   71,812
Drawn down in year               4,077             -                -    4,077
Repaid during year            (10,008)             -         (34,265) (44,273)
Written off to income                -           135              818      953
statement
Foreign exchange                 (825)          (19)                -    (844)
difference
Transfer to held for          (32,395)           670                - (31,725)
sale liabilities
At 31 December 2012                  -             -                -        -
Repaid during year                   -             -                -        -
Drawn down in year                   -             -                -        -
Written off to income                -             -                -        -
statement
Foreign exchange                     -             -                -        -
difference
Transfer to held for                 -             -                -        -
sale liabilities
At 31 December 2013                  -             -                -        -

PROVIDENCE RESOURCES P.l.c.

Note 8

Earnings per share

                 31     31 December     31        31     31 December     31
              December      2013     December  December      2012     December
                2013                   2013      2012                   2012
              Audited     Audited    Audited   Audited     Audited    Audited
             Continuing Discontinued  Total   Continuing Discontinued  Total
             operations  operations           operations  operations
(Loss) /        (7,768)        4,971  (2,797)    (8,233)     (15,950) (24,183)
profit
attributable
to equity
holders of
the company
from
continuing
operations
(€'000)
The basic
weighted
average
number of
ordinary
shares in
issue
In issue at      64,498       64,498   64,498     49,809       49,809   49,809
beginning of
year ('000s)
Adjustment           64           64       64     11,145       11,145   11,145
for shares
issued in
year ('000s)
Weighted         64,562       64,562   64,562     60,953       60,953   60,953
average
number of
ordinary
shares
('000s)
Basic and       (12.03)         7.70   (4.33)    (13.51)      (26.17)  (39.68)
diluted
(loss) /
earnings per
share (cent)

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, 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 2013. The
    amount paid under the contract in the year ended 31 December 2013 was
    €448,500. 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 €27.7m to contribute to its
share of costs of exploration and evaluation activities during 2014 of which
Spanish Point drilling is approximately €16m.

------------------------------------------------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
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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
HUG#1804793
 
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