Strategy

Providence’s strategy has been to assemble a portfolio of producing assets in geo-politically safe areas, with a portfolio of offshore and onshore prospects, combining existing discoveries with large new prospects to improve overall economics and reduce risk profile.

The Company also continues to evaluate acquisition of international prospects and niche business ventures in countries where Providence has strong links. Providence’s objective is to acquire strategic prospects and realise value to generate sustainable incremental wealth for the company and its shareholders.

A key strand in Providence’s strategy revolves around the exploration and exploitation of the hydrocarbon potential around the island of Ireland. Ireland is an area that has limited hydrocarbon commercial developments, (relative to other north west European countries, such as the United Kingdom and Norway) despite a number of exploration successes over the past 40 years, certain macro elements have changed the operating environment and there is now increased international interest in Ireland. These macro elements include attractive fiscal terms, new technology, the installation of infrastructure (and connectivity to the UK and onwards to mainland Europe) and higher commodity pricing.

As a result of these elements, where “the market has moved to us”, Providence is currently embarking on the most ambitious multi-basin, multi-year drilling programme to test the true hydrocarbon potential. This programme, expected to last over two years, will be the largest concerted drilling programme ever carried offshore the island of Ireland and will comprise a mixture of appraisal/development drilling on proven discoveries as well as exploration drilling.