Providence Resources Share Discussion Threads

[ny boy] 07/6/2017 09:23

Providence Resources PLC (LON:PVR) has unveiled two “truly transformative”; commercial deals with French oil giant Total SA bringing another “super-major” on board and giving a clear programme for its oil and gas exploration programme offshore Ireland.

[rogerlin] 07/6/2017 09:22

srvsrv and buffy thanks for clarifying the payment schedule, looks good then.

[stockriser] 07/6/2017 09:21

GD - Great news this morning. Well this certainly provides PVR with more options/potential, and who knows what news may emerge re: Barryroe ... Breakeven costs of c.$25/BBL - Well cost c $20 million.

[hermana3] 07/6/2017 09:14

Abu,Morning to you too! TOTAL redemption here now.....

[spuddymadrid] 07/6/2017 09:13

Great News. A free carry on Druid and Drombeg. Now Providence can concentrate on Barryroe and share price !!!

[abudhabi123] 07/6/2017 09:08

Good morning Herm...

[hermana3] 07/6/2017 09:01

Buffy, What a deal!!!!!!!

[buffythebuffoon] 07/6/2017 08:52

rogerlin,

Actually, small correction, we are guaranteed $20.25m, as it has to be paid within ten days of yesterday. The small balance (ahem...$6.75m) is payable if they farm in.

The only way you'd be correct is if we could drill the prospect and announce the result before 16th June.

Buffy

[srvsrv] 07/6/2017 08:49

plus:
The total consideration to be paid by TOTAL to Providence & Sosina (on a pro rata 80/20 basis) to acquire the
Option is as follows:
 US$ 20.250 million (US$ 16.2 million to Providence) - payable within 10 business days of June 6, 2017
 US$ 6.750 million (US$ 5.4 million to Providence) - payable no later than 3 business days following the
issuance of the P&A notice for the 53/6-A well

[rogerlin] 07/6/2017 08:47

TOTAL has the option and the right, but not the obligation, to farm-in to a 35% working interest in FEL 2/14 from Providence & Sosina subject to the payment of US$ 27 million to Providence and Sosina (US$ 21.6 million and US$ 5.4 million,
respectively). The Option can be exercised by TOTAL within 60 business
days of the completion (plugging and abandoning) of the upcoming 53/6-A
well.

As I read this the payment is subject to the option to farm in being taken up, i.e. dependent on the Druid result.

[bump3r] 07/6/2017 08:46

Cheers Steel

Here goes

[funtimejonny] 07/6/2017 08:45

The Irish Times have picked up on these events and there is an article on their website now

[steelwatch] 07/6/2017 08:40

Bump - did you get my message? If not, look to the right of the log out button top left.

Morning c1.

[bump3r] 07/6/2017 08:38

[Imgur]([...]

[bump3r] 07/6/2017 08:37

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[mick] 07/6/2017 08:37

Thanks Buffy, thanks for clarifying that! That makes much more sense.

[control1] 07/6/2017 08:37

Wow, how bent are the MM's on this one...!

(morning Steel)

[greatfull dead] 07/6/2017 08:35

Mick,

Agreed. Total have negotiated a brilliant deal for themselves. I am glad PVR took the deal too.

ATB,
GD

[buffythebuffoon] 07/6/2017 08:32

Yes Mick, you are missing the fact we get $27m regardless.

It's easy to overlook that amount; I do it all the time.

Buffy

[mick] 07/6/2017 08:29

Excuse my ignorance, how does this mitigate the risk of a disappointing result on Druid / Drombeg in which case Total are unlikely to exercise both options? It sounds like Total have negotiated a good deal I.e. they benefit from the upside of Druid but have no risk if Druid disappoint. Am I missing something?

[greatfull dead] 07/6/2017 08:24

Stockriser,

I feel you post #47372 could be the way PVR will go on BR.

ATB,
GD

[bump3r] 07/6/2017 08:24

Icemax at Mas Palomas with the other rigs in port

[stockriser] 07/6/2017 08:22

Follow the money so they say!