Providence Resources Share Discussion Threads

[zhockey] 09/3/2017 09:42

SR, I don't think they normally take equity in plays but not sure what historical deal PVR have with them.

More likely another E&P or NOC.

[stockriser] 09/3/2017 09:37

ZH - "I suspect there will be another farmout before the drill giving PVR an effective free carry."

Schlumberger? - Thoughts! - or am I being a thicko...lol

[zhockey] 09/3/2017 09:30

Resourceful,

One exploration well with two targets, Druid and Dromberg. Cairn will pay 45% which gives PVR a partial carry.

In addition, if the exploration well is a success, Cairn will pay 40% of a follow-up.

I suspect there will be another farmout before the drill giving PVR an effective free carry.

[cashandcard] 09/3/2017 09:14

Having looked at yesterdays news, well done for getting a partner in to cover some of the drill cost for Irish Atlantic. Best thing to do, let BR go as its a deadweight that cannot attract any capital. Focus on Irish Atlantic margin and a fundraiser before Druid results might give PVR a stay of execution. Also, of course, need something to remove ToR from the helm, need an experienced excutive from the industry to man this ship.

Cash

[ngms27] 09/3/2017 08:57

Basically if the well costs $50m Cairn will pay 45% of the costs upto $42m and anything after $42m is split as per ownership. i.e. PVR pay 56% of costs after the first $42m

Clear as mud to be sure to be sure.

[stockriser] 09/3/2017 08:43

As previously indicated, the cost of drilling both will be $50m, but 45% of that will now be covered by Cairn/Capricorn. Providence will pay for 80% of the remainder and will hold a 56% stake in the asset, with London-based partner Sosina holding 14%.

[stockriser] 09/3/2017 08:42

From the article .....

"Europa chief executive Hugh Mackay said he is confident of getting more farm-outs away this year and yesterday’s activity should create a sense of urgency amongst investors interested in Irish waters."

[resourceful] 09/3/2017 08:42

i am still not clear
is it one well two targets
cairn contribute 45% of the cost to WHAT???
is their cap 42m or the well cost 42m
big difference

[hermana3] 09/3/2017 08:41

Abu,This is a very sweet deal for 2 huge drills and TOR deserves credit and plaudits for delivering it as you pointed it singlehandedly .Like you I doubt Pat P was involved much in the farmout as he is non executive and not exactly a spring chicken either. Cairn are a superb partner with an impeccable record in picking drills. Bet wee Bill Gammell has a serious smile on his face doing business with his old pal Sir Anthony. Both are well retired now but their protégé;s may well bring in a couple of monster finds!!!! Roll on glorious June...............................

[rogerlin] 09/3/2017 08:40

In the midst of all the excitement the Fugro Searcher has set off from Cork.

[funtimejonny] 09/3/2017 08:36

Thanks for posting that Timber. There is an article in the Indo but it is so badly written it looks like it hasn't been proof read!

[abudhabi123] 09/3/2017 08:29

Seangwhite...a minuscule number of share holders, like you and Warren Buffett of Bradford, share your view. The majority of shareholders, the institutional ones, do not seem to have any issues with TOR.

[greatfull dead] 09/3/2017 07:28

Herm,

Insane Barcelona comeback against PSG in 6-1 epic puts Catalans into Champions League quarterfinals.

We won't mention the Gonners!

Some day today is going to be after yesterdays RNS. I don't think it has quite sunk in. EOG on the front line too but not positioned for first place in de race.

ATB,
GD

[isef0001] 09/3/2017 00:06

Steel:- Made glorious summer by this house of Cairn!

[1cagney] 08/3/2017 22:42

Sean you may have a point but you are echoeing you-know-who and hes just too much in your face

[seangwhite] 08/3/2017 22:19

Let's face it if TOR resigned tomorrow the share price would rise a lot more than the small % achieved after today's news. A sad reflection on his ineffectual tenure at the company.

[bump3r] 08/3/2017 21:52

RogerlinSonsnia will have to pick up a percentage of the appraisal drill too. 20 % ?

[1cagney] 08/3/2017 21:15

Just listened to the podcast. The boy is able to talk although the mid Atlantic accent is a bit much. Very underwhelming response by the markets. Better situation than 24 hours ago. In for the drill but wont buckle up till June.

[thevoid] 08/3/2017 20:25

Thanks GD,
Hope relaxing times are ahead of us.
GL
tv

[zhockey] 08/3/2017 19:39

I think we'll see another farmout before the drill.

[rogerlin] 08/3/2017 19:31

In the event that the JV partners agree to drill a subsequent appraisal
well in FEL 2/14, Capricorn will pay 40% of the appraisal well costs
subject to a gross well cap of $42 million and will have the right to
take over Operatorship.

This is similar to the situation in Senegal where the major (now likely Woodside) has the right to take over the operatorship from Cairn. In the event of success at Druid PVR's share price will be riding high, but they would be needing to raise their share of the remaining 60% of the $42 million plus any overrun.

[steelwatch] 08/3/2017 18:38

isef - nice to see positive thinking creeping back here after our long Winter of discontent.

[isef0001] 08/3/2017 18:34

Thinking about it I guess another farm in on same terms would be a no brainer. 90% of the extended drill paid for + 90% of sunk costs rebated while still retaining 32% of the licence.( Sosina would retain 8%) + 80% of any appaisal well paid for too. .Now that would free up a lot of cash for any of Newgrange, Barryroe or Spanish Point. Nice to dream.