||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Providence Resources Share Discussion Threads
Showing 57126 to 57149 of 57150 messages
|... and Stell .... Allez les bleus !|
|Herm .. you say the sweetest things :) im not hear long enough to understand the hierarchy and individuals roles and responsibilities. However I take your warning re Steel (didn't realise he was the enforcer). In seriousness tho there are the occasional pearls of wisdom and of course the two new words I've learned to-date.|
|Herm - cannae shoo les bleus! 👽|
|ICag,You and Presto restored proper order here. Steelmeister didnt even need to exercise his straight arm tackle this time around.....|
|Ahhhh the humour is back. Cheers ftj|
|Has the fire alarm gone off again!|
I think you maybe right there.
|It was you wot prodded him Ceph :)|
|Definitely seems to be a case of market makers trying to fill orders. Fair cop.
Meanwhile on LSE...|
|4 x 250k's at 17
hasn't somebody done well|
|They can have mine tomorrow for 2 to 3 Euro's per share.|
|Let the Hare lie!|
|Let sleeping dogs lie!|
|Ceph - don't prod him for goodness sake. Good piece by-the-way.|
|Richie666, I know you are reading - same old same old (LSE), some new topic or discussion point perhaps? What is the point!|
|Well...that's what the boss was intimating back in November Herm. Let's hope it can be delivered very soon. IE "early 2017".|
|[posted this on LOGP]
I have looked back at some old analysis and reports, and re-read the comment by Titan in 2015 which really was interesting. (You can all take it as you please, and enjoy or whine. I think there is still a lot to get excited about, as long as LOGP holds on tight...)
What remains interesting to me is that in 2015, San Leon Energy were raising capital through a placing so that they did not have to finance themselves by relying on the sale of their npi in Barryroe. They didn't want to accept any offer in poor market conditions, which would undervalue the asset considerably - and basically mean they were giving it away for cheap.
An offer didn't come back then, but what is clear is that SLE were not UNDERsellers in any case.
From point of eventual farm in/development SLE were expecting aggregate cash flows of $40million per annum, based on their 4.5% NPI (based on the 2013 CPR pricing assumptions which indicated cash flow of more than $700 million net to San Leon through field life).
By 2015 SLE already had a number of approaches to execute a transaction for the NPI, but decided maximum shareholder value would be attained through these cash flows.
Now SLE appear to be in quite a strong position with regard to their own financing with possible revenues of $150million for their Nigerian asset. That of course includes consideration for whatever debt they have to finance that acquisition in the first place, and the risk that a corrupt country will honour payments and dividends. It is almost too good to be true, and the market seems to undervalue SLE because of that!
Therefore the Barryroe NPI will still be of considerable value, considering the above projections didn't not include further exploration upside.
And now look - SLE are the subject of takeover interest, they will not have to sell their share of Barryroe for less than they feel it is worth, will they?! They are under no pressure to sell, it seems from their current financial situation.
Tony O'Reilly had ONCG near the point of making an offer for PVR for 15/16 Euros per share and he was in Delhi closing terms in 2015. At the time ONCG invested in Africa instead, and another American company that was interested, kept money on home soil investments instead.
All that back during the worst of the oil crisis.
There were no farmouts in the North Sea or Atlantic basin for over a year back up to June '15, and in 24 months leading up to June 2015, and PVR came close 3 times and even supposedly had takeover approaches at valuations that were not entertained.
Attractive tax and stable geopolitical situation make these assets worth hanging onto to get market value for, not fire sale prices. It is clear that is why SLE held on through the downturn, and why PVR also want the best value for the assets, and why major institutions and oil companies like Sclumberger decided to step in and fend off the vultures.
In April 2012 PVR raised $100million at £4.80 per share at 5% premium. Therein lies another reason the company will not be sold off cheap, the institutions will want a proper return. That is why I believe they happily stepped in to finance Druid. The above leads me to believe there is still interest in Barryroe, it is more a matter of not underselling it, and it is obviously a complex deal involving the various requirements of all parties with a share of it.
Titan made interesting comment at the end of their piece;
"There was also chatter that ONGC (who bid nearly 1bn euro’s in 2013 remember) had rekindled their interest in the company. Press reports that Maurel et Prom had offered north of 3 euros a share only in Nov/Dec of 2014 (placing adjusted this equates to around 1.5 euro’s a share) gives an indication of industry valuations of Providence. As one shareholder postulated at the AGM, it seems eminently more logical that the company be swallowed as a whole rather than have either Barryroe or Spanish Point farmed in as an acquiror could swallow the whole company much more capital efficiently than progressing with 2 asset farm-ins and get the balance portfolio for free. Further, there has been comment in the Sunday Times this weekend of a shareholder landing upon Providence’s shareholder register with, according to the Times, a 4.5% holding. What this tells me is that should the farm-in negotiations be beset by further set-backs and sheer bad luck during the summer months into early autumn that there is likely to be real pressure put upon management to put, officially, the entire company up for sale.
To conclude, to us at Titan we believe this situation is akin the recent one in Plus500 that we highlighted here. The comparisons are very similar, namely a complete disconnect between, in our opinion, the current stock market price relative to the real value of the underlying business (asset in PVR’s case). I am hard pressed globally, let alone in the UK, to find such an undervalued investment opportunity and we expect in the weeks and months ahead to see a complete re-rating of the stock back towards triple figures as we approach end game here and the potential catalysts of either a farm in being concluding or, perhaps more likely, the company being taken over"|
|No volume and dropping now where is my Prozac hiding? lol|
|No volume though ;-)|
|Not going down again like it is?|
|Think I'd rather see everybody fighting like mad and the share price at around 35p or higher!|
|Bonhomme has returned.|
|Yes was a good call from GD alright as tis all calm since the sensitive one left town....|