Providence Resources Share Discussion Threads

[funtimejonny] 29/3/2018 21:36

You have probably detected a note of irony here 1cag. An absolute cracker this one to be sure!

[1cagney] 29/3/2018 21:27

FTJ I think the notion of boom time next week is a busted flush. This share is now a long term gamble with no redicioius upsides. Unfortunately. Not for the day traders.

[funtimejonny] 29/3/2018 20:57

I dare say that at this mouth watering price there will be a stampede to buy in here! Probably led by the well appointed pockets of the board or directors. After all...we'er not in a closed period any more...or are there some more secret transformational deals in the oven that are preventing them from opening their bulging wallets? Watch this space! Boom time next week.

[hermana3] 29/3/2018 18:57

Nice to see NUOG are advancing Helvick/Dunmore development plans. Some action this year on this project would be very welcome indeed. Happy Easter Folks....

[srvsrv] 29/3/2018 16:54

Nice read the Mirabaud broker report - exiting what Dunquin and Newgrange bring here in 2018. Also Dunmore/Helvick decision to be made. So 2018 doesn't have to be a boring year...

[srvsrv] 29/3/2018 16:52

guess the "no-event" on the share price is due to short term investors who have hoped for a 2018 drill - they have sold and pressured the share price. For long term holders (me) it will rise when the drilling kicks off in early 2019. A double from now is ok for me with a one-year horisont:)

[steelwatch] 29/3/2018 16:49

Bad memories leading to lack of trust I guess pap. Let's see where the share price is a 1 - 2 years from now.

[papillon] 29/3/2018 16:35

Thanks for that srvsrv & steelwatch. I got that completely wrong! To be honest if I'd have thought about what I wrote I would have realised that LOGP wouldn't have been able to repay a US$10m loan anyway and the Chinese company would have known that; you can't get blood out of a stone.

So what does the "MARKET" not like about the farm out, since most PVR shareholders would have expected the PVR share price to be over 20p by now following on from a farm out RNS?

[steelwatch] 29/3/2018 15:20

pap - we don't know the exact terms, but the loan would appear to be secured against future production without recourse to other assets of the borrowers.

[srvsrv] 29/3/2018 15:14

papillon: wrong - it is a non-resource loan - so if no production the chinese will pay all the costs.

[papillon] 29/3/2018 15:11

From yesterday's RNS:

"THE CONSORTIUM TO FINANCE PROVIDENCE & LANSDOWNE'S 50% SHARE OF DRILLING
PROGRAMME COSTS BY WAY OF A NON-RECOURSE LOAN WHICH IS SECURED AGAINST
FUTURE BARRYROE PRODUCTION CASHFLOW"

What happens if the 3 appraisal wells are not deemed to be a rip roaring success and the "consortium" doesn't decide to further develop the Barryroe field? Presumably LOGP will be saddled with circa US$10m debt and PVR a US$40m debt. Is this what the Mkt (and Malcy) doesn't like about the deal?

[papillon] 29/3/2018 14:59

tmmalik 29 Mar '18 - 08:12 - 54973 of 54978
0 0 0
Let start going up
I guess we will close around 12 today
Than another 10-20 percent on tuesday

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Sweet dreams only, I'm afraid! You need a new crystal ball!

[abudhabi123] 29/3/2018 10:52

MIRABAUD REPORT

[greyingsurfer] 29/3/2018 08:54

Sounds like these are all appraisal wells, still another round of fund raising to get into production?

These will be production wells

If successful they are likely to become production wells. However, there would still be very substantial development costs involved in moving to production. Three wells, if successful, will make it a lot easier to raise funds for a development, but we are some way from that yet.

Peter

[steelwatch] 29/3/2018 08:52

Mention in respected oily rag:

[srvsrv] 29/3/2018 08:50

exiting regarding Helvick and Dunmore:)

[steelwatch] 29/3/2018 08:44

herm - re your 54969 above -

From NUOG's interims today:

Marginal Field Activities

Shareholders are aware that we have identified and reviewed a large number of marginal fields, working with Consortium members to convert a number of these undervalued opportunities into commercial assets that will attract financing and secure field development approval. Such work is complex and the Company will realise the value when this investment results in the acquisition of projects in which investors can have a high degree of confidence that good returns, through each project's life, will be achieved.

Funds have been raised because our work activities are accelerating; there is much more to our marginal field activities than just evaluating and assessing ways to improve the economics. What is required is a demonstration that risks to economic project performance have been reduced to levels that stakeholders and especially investors, consider practicable and acceptable. That starts with the subsurface due diligence, continues through engineering design and other technical aspects into the 'delivery' phase, which is safe and efficient operations following final development plan approval from the in-country regulators and, commercial support from investors.

Securing the first marginal project is our priority and I am encouraged by the speed of progress we are making and, accordingly, that this will be achieved in short order. We have a short list of targets which includes projects where negotiations are ongoing, in addition to others which are in earlier stages of development that will form a pipeline of additional opportunities once the priorities are converted. That does not mean they will all be successfully concluded but it does mean that considerable progress has been made. Moreover, resources are being applied to a fewer number of prospects and the schedule is on course to achieve the intended results.

The shortlist, which has been determined not by location but by the detailed criteria required to identify low-risk project profiles, includes fields in the North Sea, and offshore Brazil, amongst others. We can only provide more information when a transaction closes but shareholders can be confident of progress and the board of Nu-Oil believes that there is an end-point in sight.

Our business model provides us with greater flexibility than the traditional approach for project development where the licence is already 'owned'; while we cannot guarantee all negotiations will be successfully concluded, we do have great confidence that the assets we are assessing can be successfully developed. And of course, we choose our targets because they meet value creation criteria we believe should be delivered. Furthermore, as we move towards such announcements, shareholders should know that our projects can hopefully be fast-tracked because of the work already undertaken by consortium members such as AGR, Aibel and Aker Solutions. Through the work our Consortium partners do, MFDevCo is able to raise a combination of non-recourse lending and vendor financing, part of the commercial aspects of commercial negotiations.

The background work that has been undertaken, and remains ongoing, is difficult to communicate on a continual and progressive basis because of the commercial sensitivity. While we cannot always provide the level of detail shareholders would like, our communications are intended to demonstrate careful progress. We look forward to being able to communicate more openly once projects are secured and confidentiality clauses no longer apply. Furthermore, as projects advance into the development stage, shareholders can expect regular updates as work scopes are progressed and completed.

Helvick and Dunmore

Progress has been made with respect to the lease undertakings for the Helvick and Dunmore licences, in which MFDevCo holds 10% interests, work has been progressed following the receipt of consent for the assignments, announced on 2 November 2017. The results of the work have been submitted to the regulator and the licence holders await their feedback. Once received, further plans can be formulated and communicated.

[tmmalik] 29/3/2018 08:12

Let start going upI guess we will close around 12 today Than another 10-20 percent on tuesday

[jam2day] 29/3/2018 08:10

These will be production wells

[rogerlin] 29/3/2018 08:07

"the drilling of 3 vertical wells, plus any associated side-tracks and well testing"

Sounds like these are all appraisal wells, still another round of fund raising to get into production?

[srvsrv] 29/3/2018 07:22

yes get on with the farmout of Newgrange and develop the Celtic Sea marginal fields. And a plan for Spanish Point!

[hermana3] 29/3/2018 07:00

Ah the good old days are back! Now to farm out some more licences and develop Celtic Sea marginal fields.

[srvsrv] 29/3/2018 06:44

From Irishexaminer:

6 months 6 wells drilling programme early 2019.



Providence Resources is hoping to start a multi-well, six-month drilling programme at its Barryroe field off the Cork coast early next year, after finalising a development partner for its flagship asset.

Shares in the Dublin-based exploration company jumped 25% on the announcement that a Chinese consortium, headed by Beijing-based investment company APEC Energy Enterprise, has agreed to take a 50% stake in Barryroe in return for covering half of the costs of the drilling programme.



Providence’s share of Barryroe will decrease from 80% to 40% if and when the deal formally completes, as expected, during the third quarter of this year.

Approval is required from both the Irish and Chinese governments. Lansdowne Oil and Gas will remain a junior partner, but now with a 10% rather than 20% share.

Exola, a subsidiary of Providence, will act as operator of the field. APEC will also loan Providence/Exola and Lansdowne the necessary money needed to cover their drilling costs. That money will be repayable from future production cash flow from Barryroe.

APEC will also have the opportunity, in return for another €8m or so, to subscribe for share warrants within six months of the completion of the proposed drilling programme. If exercised, that would give it a near 10% stake in Providence.

While the specific timeline is still unclear, it is understood that Providence and its partners will aim to start a six-well drilling campaign at Barryroe in the first half of next year. This should run for around six months after which all parties would hope to fast-track the field to commercial status by the early 2020s.

Providence boss Tony O’Reilly Jr, who has come close to executing a Barryroe deal numerous times in recent years, called it “a significant transaction”, which will provide for the acquisition of modern dynamic well test data that “should assist in advancing the field to production.”

Latest estimates put Barryroe’s recoverable oil resources at 346m barrels. The deal marks Providence’s fourth farm-out agreement in the last 12 months and the company said it is progressing with efforts to find development partners for other assets.

Indeed, future deals could also include APEC, with its chairman Colin Lui saying the parties have also agreed to “jointly investigate further opportunities in other licensed blocks offshore Ireland in the future”.

The consortium buying into Barryroe also includes JIC Capital Management and China Oilfield Services.

[hermana3] 29/3/2018 06:39

Tone is back! Sales of fake tan on the rise....

[ohisay] 29/3/2018 01:40

FWIW ...if only for the suggestion that well costs will be circa 100m$ - and no drilling until next year.
Well costs seem high to me- I'd have expected 70m$ to 80m$ to include testing - but so much the better if they are prepared to shell out that much.



....Tony O’Reilly said that it had sold a 50 per cent stake in Barryroe, 50 kilometres off the south coast of Ireland, to Apec Energy, a Chinese company.

In return, Apec would cover its share of the estimated $100 million costs for three wells to be drilled and tested next year through a loan that would be repaid if the field went into production.

Oil was first discovered at Barryroe in the 1970s but was not thought to be commercially viable until Providence Resources drilled a fresh well in 2012 that found it could contain 1 billion barrels of oil. Ireland does not have any offshore oil production at present.

Providence, headquartered in Dublin with just 14 members of staff, hoped at one stage to start producing oil by 2015 but struggled to secure a development deal as oil prices crashed.

Mr O’Reilly said yesterday that he believed oil could be produced from Barryroe by the early 2020s, subject to successful drilling next year. Estimates suggest 310 million barrels of oil could be produced from the field.

Shares in Providence, listed on London’s Aim and in Ireland, have fallen heavily since 2012 when it was worth as much as £500 million but soared by 17 per cent yesterday to give it a market value of £66 million.

Mr O’Reilly has brought in partners to Providence’s other Irish exploration assets over the past year, including Cairn Energy and France’s Total. Drilling last year at the Druid and Drombeg prospects disappointed, however.

He said: “We are the company that has been beating the drum for offshore Ireland for so many years. For many years we were by ourselves and now we are joined by major industry partners.”