Providence Resources Share Discussion Threads

[funtimejonny] 22/9/2018 12:06

Emm....I think it is possible, but not until a successful outcome to Barryroe drill programme. Watch this space....

[northatlanticholdings] 22/9/2018 11:53

I don't think so - I doubt it would get approval from the Irish Government

[srvsrv] 22/9/2018 09:37

pvr takeover candidate?

[1cagney] 22/9/2018 08:36

FTJ you can be sure it will be in the Sunday papers.

[funtimejonny] 22/9/2018 08:29

I was very surprised that the Irish Times missed out on the farmout deal completely. Indo and Examiner gave it some coverage.

[1cagney] 21/9/2018 18:24

ngms, oil in the ground is worth sfa until you get it out. Finding it is expensive, getting it out is very expensive. The deal overall is good. At current share price a flippin bargain. Fill your boots.

[peaeff] 21/9/2018 17:18

ngms27

It would appear from your comments that you are not currently holding here. You state that Barryroe and it's recent farm out are a 'disaster'.

It has been a long and rocky road to where we are today and a very close call along the way, to extinction. There were many negative factors contributing to that situation as well as a number of management hiccups, However we finally have what we've been waiting 6 years for, and as a long term holder here I, and many others, can breath a sigh of relief.

It's one thing to criticise but was there an alternative. I am sure that much negotiation and thought has gone into accepting these terms, and I am quite sure that the questions you pose have all been considered and dissected.

I would hazard a guess that you personally have not been consulted at all in any of those negotiations so, how are you qualified to dismiss the result as 'mutton dressed as lamb'. I, and many others, are delighted we are at last going forward with a great discovery which, initially, was too big to handle by the two small companies involved. Regards.

[greyingsurfer] 21/9/2018 16:35

Hi ngms, not seen you here for a while

How much are the wells going to cost? PVR have to pay 5% interest on 40% of the cost until first oil.

How much will development cost? How will PVR fund their 40%?

You are being more than a little harsh, and, of course the answer to your second qusetion is quite clearly stated in the RNS:

The Loan, drawable against the budget for the Drilling Programme, will incur an annual interest rate of LIBOR +5% and will be repayable from production cashflow from SEL 1/11 with APEC being entitled to 80% of production cashflow from SEL 1/11 until the Loan is repaid in full;

What PVR get out of this, apart from the $19.5m, is funding to production of their 50%, with no financial risk, and repayments out of (any) production). And a share of production revenues while repaying the loan.

For a company in PVR's position that's not at all a bad deal. Where else where they going to fund development from? Sure they will be paying off a lot out of production, but if Barryroe turns out as they are presumably expecting, they will in time be getting 40% of net revenues - if they don't sell out before. They have turned something of next to no value into an asset that now has some. I see that as a good result.

Peter

[steelwatch] 21/9/2018 15:06

ngms - TOR has stated he doesn't see PVR taking Barryroe through to development and will likely sell post appraisal, so probably won't pay a bean for the upcoming program.

[ngms27] 21/9/2018 14:53

Barryroe has been a disaster for PVR as is the farm out.They have given away 50% for $19mHow much are the wells going to cost? PVR have to pay 5% interest on 40% of the cost until first oil.How much will development cost? How will PVR fund their 40%?The deal is mutton dressed up as lamb.

[steelwatch] 21/9/2018 14:29

toon - let it be...……………...Newgrange......

[steelwatch] 21/9/2018 13:47

srsv - malcy hasn't been the greatest fan of the Explorer in the past, but did mention en passant:

[offerman] 21/9/2018 11:05

Agree by doing the "Maths" here and some other stocks it should be valued higher but I think it's down to the sector as a whole. It got slaughtered over several years and is yet to recover imho.

[srvsrv] 21/9/2018 10:40

do the "math" and see how cheap it is - should be trading around 30+

[srvsrv] 21/9/2018 10:35

with so few shares "free" (non institutions) the share price could rise very quickly

[raisethestake1] 21/9/2018 10:31

Nice to see this put to bed finally. I would like to delve into the repayment of non recourse loan. Am I right in assuming that 20% of production cash flow can only be used to repay ours and LOGP half of costs. This is @5% interest annually. APEC in effect are getting a further 30% while this loan is still open. Am I reading this correctly. Also what exactly is production cash flow. Is it net profit after expense of well or straight number of barrels of oil x price per barrel.
I am continuing to hold here for the moment after halving my stake back along. We are now massively derisk ed. I await Malcys comments. They should be positive and add good uplift. We should be @ 18p yesterday if right was right. We would have halved if deal did not go ahead. Gla. Our ship will come in in time.

[ny boy] 21/9/2018 09:31

Everyone onboard the starship enterprise, massive hard on ahead!

[srvsrv] 21/9/2018 09:31

and if we get a farmout/drill decision regaring Newgrange the share price would go crazy

[greatfull dead] 21/9/2018 09:29

zh,

I hate de word assume, sorry but that de truth!!!!!!!

See ya next week.

ATB,
GD

[zhockey] 21/9/2018 09:25

So assuming the assessment goes well and they move into production. Would they follow the same financing terms and if so when would PVR be likely to see any revenues?

[greatfull dead] 21/9/2018 08:57

Sky blue. No, predictable in light of the positive but already in the bag RNS.

ATB,
GD

[srvsrv] 21/9/2018 08:43

still moving up:)

[hermana3] 21/9/2018 08:36

Market is liking deal more today. Blue day on way.....