Providence Resources Share Discussion Threads

[funtimejonny] 01/4/2018 07:52

There is an article in today's Sunday Business Post as well. I don't have a subscription so I can only see the first couple of lines. Can anybody post this please?

[srvsrv] 01/4/2018 06:43

thanks ohisay - possible to post the whole article?
Thanks.

[funtimejonny] 01/4/2018 05:24

Thanks for that Ohisay. Probably the most positive piece of coverage to date on Barry.

[ohisay] 01/4/2018 05:16

... Last year the company drilled the deep waters of the Porcupine basin, off the southwest coast. The Druid Drombeg target held significant reserves, but was water-breached.

Far from negative, it sparked optimism. Cairn Energy, a partner on Druid Drombeg, is pressing ahead with plans to explore two neighbouring blocks and is looking for partners. The data showed “significant promise”, the Cairn boss Simon Thomson told investors recently, urging them to “stay tuned”.

Total, the French major, also recently exercised its option on Druid Drombeg, essentially to secure access to the data for further exploration. The next action in the Porcupine basin will involve Nexen, owned by the Chinese National Offshore Oil Corporation, which has an interest in the drilling company that is part of the Barryroe consortium. Things are getting hot.

Renewed activity will raise hackles, and fury, if oil and gas is actually found. Ireland operates one of the most generous taxation regimes for exploration in the world. Analysts estimate the state cut from Barryroe will be less than 30%, which is extremely low by international standards.

[srvsrv] 31/3/2018 20:40

what not to like - to put in the drawer and check the share price in a couple of years.

Barryroe farmout - drilling 3+3 wells next year - potential transformation of 2C to 2P.
Fully funded
Potential shareprice boosters - Newgrange and Dunquin - farmout/decision regarding drilling.
Other exiting prospects.

[papillon] 31/3/2018 19:51

The APEC Chairman & CEO has some rather dodgy friends! :-)

Photo of Donald Trump shaking the hand of Colin Liu Shaohua, Los Angeles 2015

[hermana3] 31/3/2018 17:01

Should be some commentary on this far reaching deal in The Sundays.....

[avinalaf] 31/3/2018 10:58

Given that the Chinese have their own drills, their own support services and their own crews what is to stop them drilling this year? And given that they have those already in place the cost of the proposed three wells should be well short of the $100m given that Providence reckoned on drilling one was $28m.

The issue though is what cost will it take to bring the whole lot into production. That will obviously cost Providence half of the bill which will be paid for in revenues split 80%/20% but Providence would never have been able to develop that itself.

Given that Corrib cost $3billion what will be the final cost for Barryroe and Providence will have to stump up 50% through oil revenue so how long before Providence makes any real money?

The only thing standing in the way of the project is approval from the Irish minister since the Chinese government are a formality. But the minister could not deny the development given that KEL, which sits above Barryroe, is a Malaysian subsidiary of Petronas.

Next, what are they going to do with the gas? One suggestion was to go for it first as a revenue stream and finally, the 59m warrants at 12p. Surely that is the gravy for the Chinese since if the shares went to say £1.50, it certainly pays for the three wells and the gas so they would be on a win at no cost.

Great deal for them, Providence over a barrel but any deal was better than no deal.

[funtimejonny] 31/3/2018 09:07

Thanks for the research Steel.

[steelwatch] 30/3/2018 17:46

Interesting bit of background to the deal:

[jam2day] 30/3/2018 17:38

Really - I suppose thats why they are prepared to invest 100 mln $

[lbo] 30/3/2018 16:02

"this is Providence's best asset, and it looks like its partner will take the lion's share of any revenues and has the option of taking control of production. Apec clearly thinks Barryroe is worth exploiting, but its terms indicate that the Chinese group ranks it as a relatively high risk"

[lbo] 30/3/2018 16:02

https://www.irishtimes.com/business/energy-and-resources/providence-finally-finds-partner-to-exploit-barryroe-oil-find-1.3443630?mode=ampThe deal does not look all that attractive from Providence's point of view

[funtimejonny] 30/3/2018 13:50

Good post by Jimmy on iii at 13.25. Entirely my sentiments as expressed recently.

[spuddymadrid] 30/3/2018 09:24

As Hermana says this is good news

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.

[rogerlin] 30/3/2018 08:50

After the completion of the Drilling Programme, APEC will have the right
to become Operator for the development/production phase.

Website doesn't show any existing operated projects. Can they get an Operator's licence in Ireland?

[riley9] 30/3/2018 08:01

Nice slow-burn rise over a few months suits me fine - plenty of time to top up at these low levels, prior to people buying in for drills and prior to finalisation/govt ratification of deal and drills. Topped up considerably with more to come. Looking to increase holding by mil+ shares by autumn at least. Broker is sounding very positive.Thursday share price drop was nearly all bought back showing there's buying strength out there.

[hermana3] 30/3/2018 06:18

ISE, The Department should grant an extension especially as APEC are onboard and could well be interested in joining on the OPL-1 option. The Chinese are coming indeed....

[isef0001] 30/3/2018 04:08

As I understand it, OPL-1 option runs out in Dec' this year. Thats the option to gain 60% of the eastern extension of Barryroe (below 4000 ft TVDSS)from Kinsale Energy by drilling a well into the Basel Wealdon. PVR's new found partner might be interested in joining in on that one. Pity the option runs out before they drill the three x three next year ie: success would give them more confidence to give it a go. I suppose they could always seek an extension of the option. Perhaps we should watch this space!

[hermana3] 29/3/2018 23:44

1cag, Jonny has gone all sour and de tanned one must be the cause...

[1cagney] 29/3/2018 22:14

FTJ I totally got the irony. And I suncerely hope that the cracker irony is well and truly put to bed.