Providence Resources Share Discussion Threads

[srvsrv] 28/3/2018 11:39

zhockey: the main thing is that Barryroe now will be confirmed - if so the past cost are irrelevant as the coming cashflow is extremely big for a company of the size of PVR. If not confirmed the chinese will pay 100%

[zhockey] 28/3/2018 11:34

I agree with Catsick, this is not a great deal for PVR. Unless I missed it there is no 50% payment for past costs?

Once the three appraisal wells are drilled what happens then, further dilution?

[papillon] 28/3/2018 11:29

Congratulations are in order. Barryroe farmed out at long last!
The MM's must have been more optimistic of buying interest because they opened at 12p and early buyers paid over 12.50p. OUCH! They could buy much cheaper now that the initial enthusiasm for the deal has waned! Probably see more buying interest when deal is finalised and drill timescales are issued.

[papillon] 28/3/2018 11:19

Conratulations are in order on Barryroe's farm out at long last. However hoper2 makes some good caveats. This doesn't seem to be a license to print money for PVR!

[ohisay] 28/3/2018 10:05

Seems ludicrously cheap given PVR cash cushion - seems to value the 2c resource at 30c /barrel and thats without factoring in whatever they might find in the Lower Wealden.

Downsides in the deal are no past costs to PVR/LOGP and nothing firm as yet on drill timescales but i'm pleasantly surprised and have added more at 11p.

[srvsrv] 28/3/2018 10:02

totally agree isef0001 - now they have a lot of options

[hoper2] 28/3/2018 10:01

The company will still have to pay SLE their 4.5% Net Profit Interest on the total Barryroe profits. With that and giving half of Barryroe away, taking out a large loan and production (if there is any) still many years away, it's hard to find a reason to buy the shares.

[isef0001] 28/3/2018 09:58

Well! No more "Wouldn't want to be out of this over the weekend" Ha Ha!. Well done PVR and congrat's to all holders.

Question is, Now that the B/R costs are covered for the drilling programme, what will PVR spend the balance of its left over cash from the fund raiser/ Druid Drombeg farm outs on? share price or Kish Bank? Or do they squander it on treats for the tanned one. Maybe they need to hold on for an ENI drill on Dunquin South. Nice that PVR has options. Cheers.

[srvsrv] 28/3/2018 09:50

it's all about derisking. No 20m in the bank and 140+mboe in Barryroe which could be transformed to 2P. If so shareprice about 50p

[jam2day] 28/3/2018 09:47

Do you think that he sold up before the farm out

[itsriskythat] 28/3/2018 09:44

Re Lansdowne substantial shareholders and loan providers

Lamp Conway Capital 27.1% and Brandon Hill Capital 11.4%

Yes, Lansdowne is relying on their loans for working capital, but both of these lenders can provide Lansdowne with additional capital until completion of the farm-out in Q3, and neither would be in any hurry to accept a poor offer from APEC.

[steelwatch] 28/3/2018 09:42

Saw the Bradford lad post on LSE earlier, so went looking:

[steelwatch] 28/3/2018 09:38

Davy comment this morn:

Providence delivers Barryroe farm-out
Job Langbroek | Morning briefing | Read Important Disclosures

The news that Providence has achieved a farm-out of the Barryroe project offshore Ireland is very good for the project and shareholders. While oil markets have recovered over the last 18 months, deal and farm-out flow is still not particularly active so an agreement that results in a three hole and three sidetrack drilling programme is a good outcome and again shows Providence to be the main driving force behind drilling offshore Ireland. We expect the stock to trade up on the announcement.

[kibes] 28/3/2018 09:24

greying surfer - agreed. I am glad a deal has been done albeit on pretty harsh terms.
However if the three wells turn out to be good producers which is quite likely enthusiasm fo the development will no doubt pick up. I am just wondering whether the thing to do is buy Lansdowne shares because they look like a bit of a sitting duck to APEC, although with no cash they really haven't got a prayer of getting a good deal.

[filterwest] 28/3/2018 09:21

moneytree1 - what's your motive????

[greyingsurfer] 28/3/2018 09:14

Not quite Kibes, it's a non recourse loan. Only repayable from production. APEC are taking all the risk on the next 3 wells. PVR will still have to raise 50% development funding, if the appraisal is successful, and repay plus interest from production, so sometime before any possible cash flows. But it moves the project forwards without risk to PVR. Not a brilliant deal, but given the circumstances, and clear lack of a lot of enthusiasm for the project from elsewhere it's better than sitting around doing nothing!Peter

[bump3r] 28/3/2018 09:11

Bit if a backrest there.Let's see some action now

[neo26] 28/3/2018 09:10

KibesPut it this way, how much will 3 wells and a sidewell cost?$70m? They have given 50% in exchange for 35m of drilling cost and giving us low intetest loan.Chinese got a good deal, but eventually we can move forward with barry..

[itsriskythat] 28/3/2018 09:09

To jointly investigate further opportunities:

Mr. Colin Lui , Chairman of APEC Energy Enterprise Limited commented:

"APEC, supported by Jianyin Investment Company and China Offshore Services Ltd, are very pleased to have strategically joined forces with Providence and Lansdowne to develop the Barryroe field. This field has significant recoverable resources and we look forward to jointly developing this opportunity. Whilst the Farm-Out Agreement has been agreed specifically for Barryroe, the parties have also agreed to jointly investigate further opportunities in other licensed blocks offshore Ireland in the future."

[pre] 28/3/2018 09:08

Kibes - PVR pay interest plus 5% LIBOR on the loan, so APEC benefit on the loan too...

[bump3r] 28/3/2018 09:05

What about SLE 4.5% stake?No mention of that

[kibes] 28/3/2018 09:04

Cautiously positive but:

1. Providence isn't actually getting paid anything at all for farming out 50%.
2. It will still have to pay 50% of drilling costs but will be given a loan to cover this by APEC. Which will have to be repaid.
3. There is no mention of field development costs.
4. Basically APEC has walked into 50% of Barryroe for nothing as far as I can see.

[bump3r] 28/3/2018 09:03

They are only obliged to drill the 3 wells and sidetracksWe still need funding to bring into production.I think following the drilling programme with a much higher share price a decision to raise funds will be made then.