IRELAND - NORTHERN PORCUPINE BASIN - FEL 2/04

Frontier Exploration Licence 2/04

SPANISH POINT Gas Condensate and BURREN Oil Prospects (58%)

FEL 2/04 was originally licenced in 2004 and is located in the Northern Porcupine Basin, c. 170 km off the west coast of Ireland. The licence is situated in c. 400 metre water depth and contains the Spanish Point and Burren gas condensate and oil discoveries, respectively.

In 2008, the Company entered into a staged farm-in arrangement with CEPIL in relation to both FEL 2/04 and FEL 4/08, with CEPIL assuming an initial 30% working interest in return for carrying the costs of a 3D seismic programme, which was subsequently acquired in 2009.

In 2011, Senergy completed a Competent Persons Report on the licence which resulted in estimated recoverable contingent resources of 97 MMBOE (2C) for the Spanish Point field. At this point, the partnership moved to the next stage of the licence with a commitment to drill an appraisal well on Spanish Point. Under the CEPIL farm-in agreement, CEPIL’s cost exposure was capped for up to two wells (or well and potential side-track).

In May 2013, CEPIL entered into a farm in agreement with Cairn Energy plc whereby Cairn became operator and agreed to drill an appraisal/exploration well on Spanish Point. As a result, the revised working interests for FEL 2/04 and FEL 4/08 then changed to Cairn
(38.0%), Providence (32.0%), CEPIL (26.0%) and Sosina (4.0%).

In July 2014, the Company announced that the planned Spanish Point appraisal well was delayed due to rig refurbishment issues with the selected rig. In March 2015, drilling was again deferred due to unforeseen changes to the make-up of the joint venture and the
consequent delay to the securing of equipment and other necessary requirements.

In February 2015, the Company announced the acquisition of 100.0% of the issued share capital of CEPIL, effective from November 2014, thereby increasing the Company’s interest to 58.0% in both FEL 2/04 and FEL 4/08, and to 43% in FEL 1/14, for a nominal consideration of US$1 and a contingent payment of US$5 million, payable in the event that a Final Investment Decision (FID) is made for the Spanish Point gas condensate project. As a result of the acquisition, the Company secured the benefit of the partial carry on the well provided to CEPIL, pursuant to its farm-out agreement with Cairn entered into in May 2013. Under the terms of that farm-in, Cairn will fund 63.3% of future exploration and appraisal costs of CEPIL for up to two wells, subject to a cap, with the Company currently estimating that its cost exposure will amount to less than 43.0% for its 58.0% working interest.

In March 2015, drilling was again deferred due to changes to the makeup of the joint venture and the consequent delay to the securing of equipment and other necessary requirements.

In October 2015, the Company confirmed that it had commenced a farm-out process for part of its interest in FEL 2/04 and FEL 4/08 and that Cairn planned to commence operations for drilling during 2017, subject to Irish government approval. The farm-out process, which is ongoing, is focussed on the divestment of a 32.0%, non-operated working interest, with the objective of the Company retaining a 26.0% working interest.

Partner sanction for drilling was needed, which inter alia, required a funding commitment by all partners to be declared no later than the end of April 2016 to facilitate drilling activities in 2017. As partner sanction for 2017 drilling was not achieved by the end of April 2016, the proposed appraisal drilling programme will now not be achieved during 2017, and so Cairn has requested (on behalf of the joint venture) an extension to the term of FEL 2/04 (and the alignment of the phasing of FEL 4/08 with that of FEL 2/04) to allow drilling to take place at a later date.

New technical work has been carried out on the Spanish Point licences. Re-analysis of the original 35/8-2 discovery well data now supports the stacked reservoir contact scenario with prospective recoverable resources of up to 337 MMBOE (1,322 BCF & 117 MMBC), which is a 250% increase to the previously announced estimates (Senergy 2011 CPR). Updated well modelling indicated original 35/8-2 vertical well had an undamaged flow potential of c. 10,700 BOEPD (c. 500% flow rate increase over original 1981 well test, which had significant skin factor damage.

Related press release - 2016

11 March 2016
ASSET PORTFOLIO UPDATE - PORCUPINE & GOBAN SPUR BASINS

Related press release - 2015

27 October 2015
LICENCE UPDATE - SPANISH POINT AREA, NORTHERN PORCUPINE BASIN
10 March 2015
OPERATIONAL UPDATE - SPANISH POINT FIELD, NORTHERN PORCUPINE BASIN
9 February 2015
MARKET UPDATE

Related press release - 2014

14 August 2014
OPERATIONAL UPDATE - 3D SEISMIC SURVEYING OPERATIONS COMMENCE ON SPANISH POINT SOUTH AREA, NORTHERN PORCUPINE BASIN
9 July 2014
OPERATIONAL UPDATE - SPANISH POINT AREA, NORTHERN PORCUPINE BASIN

Related press release - 2013

9 July 2013
SPANISH POINT OPERATOR AND RIG CONTRACT

Related press release - 2012

29 August 2012
OPERATIONAL UPDATE - SPANISH POINT - WELL SITE SURVEY OPERATIONS
20 July 2012
SPANISH POINT DISCOVERY - OPERATIONAL UPDATE

Related press release - 2011

17 October 2011
PROVIDENCE AWARDED FOUR NEW LICENSING OPTIONS IN 2011 IRISH ATLANTIC MARGIN ROUND
14 March 2011
CHRYSAOR EXERCISES SPANISH POINT DRILLING OPTION
22 February 2011
OPERATIONAL UPDATE - SPANISH POINT & BURREN