Providence Resources Share Discussion Threads

[burial] 13/2/2020 14:59

Nobody will farm in whilst gas prices are so low. The cash raise is simply to keep paying the guys who run the show. Including recently appointed CEO Alan 'bouncy' Linn. Did he do his own due diligence when he joined?

[nick rubens] 13/2/2020 12:25

Most likely a small placing coming to keep the farm in process alive and going, and enough money to last until around the end of this year should do it. A potential Farm in partner should be able to do a deal in that time.

Maybe when a placing is out of the way,(though dilution issues) this might make a bit progress share price wise? Would a short term convertible loan make sense, but not the forward sold scam type.

[onehanded] 13/2/2020 11:57

Presently, Providence has sufficient working capital to last until late March or early April, and, new funding options are now being explored.

AHHHHH more needed.

[roadster750] 13/2/2020 10:59

Providence Resources PLC (LON:PVR) has confirmed it is unwinding the Chinese partnership at the Barryroe field and it is undertaking a new farm-out process.

The main focus is to advance the appraisal of the Barryroe field, to answer key uncertainties about the reservoir and bring the project closer to development.

Presently, Providence has sufficient working capital to last until late March or early April, and, new funding options are now being explored.

“With the farm-out process continuing the company confirms that additional funds will be required to provide sufficient working capital to support the business in the near term and the board is currently considering its funding options,” Providence said in a stock market statement.

Barryroe appraisal plans
The prior Chinese farm-out and development plan was centred on the project’s oil potential, but, according to Thursday’s statement, Barryroe also has a meaningful gas element – which may have strategic implications for the company, Ireland and the government.

Providence today noted that in the past Barryroe has been independently verified as containing large volumes of both gas and oil.

The appraisal plan now being drawn up by the company, potentially comprising two wells, is intended to confirm Barryroe as either (a) a large oil field with a gas cap or (b) a large gas field surrounded by an oil rim.

It is anticipated that the programme would also seek to confirm reservoir continuity and potentially explore a previously untested Jurassic age prospect deeper beneath the Barryroe reservoirs.

READ: Providence Resources names Alan Linn as new chief executive
Independent estimates indicate a mid-case for recoverable hydrocarbons at 346mln barrels oil equivalent, the company noted.

Providence also said it would consider a possible nearby infrastructure redevelopment project, that could potentially deliver a carbon dioxide storage solution - utilising depleted gas fields - which would “minimise the carbon footprint of a Barryroe development”.

Beyond Barryroe, Providence’s new management continues to advance a strategic review of the business and its assets. As such all exploration licences are being re-assessed based on cost and relevance to the new business model.

At Dunquin South exploration project partner ENI has decided to exit, and it is Providence’s view that the reservoir is less likely to be breached than the Dunquin North structure, which was the subject of an unsuccessful well back in 2013. Providence intends to launch a farm-out process to seek a new partner once ENI’s exit is complete.

The company has, however, confirmed that it is in the process to voluntary surrender the Diablo exploration project.

Chinese deal being unwound, new farm out underway
Providence also confirmed today that its subsidiary Exola DAC has now notified APEC, the Chinese consortium, that it has begun the regulatory process required to transfer the 50% equity in Barryroe back to the original Barryroe partners, Providence and Lansdowne Oil & Gas Plc (LON:LOGP).

Providence will retain 80% whilst LOGP will again hold 20%.

The new farm-out process is being conducted and Providence noted that, with the inclusion of gas into the development approach, several additional companies not included within the initial process have expressed interest in the project and have been invited into the ‘data room’.

Investors will now await any details of funding, farm-outs and/or further appraisal plans for Barryroe.

[roadster750] 13/2/2020 10:50

Lets emphasise the gas rns.

[2000tober] 13/2/2020 10:23

Srvsrv that not is spam it's on loads of boards

[srvsrv] 13/2/2020 10:17

From the CPR: The total combined audited gross on block 2C recoverable resources at Barryroe therefore amount to 346
MMBOE, comprising 311 MMBO and 207 BCF.

[srvsrv] 13/2/2020 10:09

1jimmysmith - possible to share the broker note?

[hoper2] 13/2/2020 09:20

Doesn't matter who's in charge they are just so predictable. Another 300 million shares at 2p which will raise about £5 million after costs. It will pay the directors wages for another year or so and achieve absolutely nothing for shareholders. If there was any future for this company the directors would have bought millions of shares long ago.

[ianio5691] 13/2/2020 08:29

This completely hinges on our new guy being able to negotiate a farm-in with a real Company, not the mickey mouse outfits that his useless predecessor was entertaining and only capable of attracting.

If a deal cannot be closed, and quickly - it looks like finito banito!

[greyingsurfer] 13/2/2020 08:22

"The gas component of Barryroe is really quite small if the information we have been fed to date is to be believed, so this RNS just looks like it has been written to appeal to the green lobby."Alternatively, the interpretation has changed to include, as stated in the RNS, a gas field with an oil rim.

[stockriser] 13/2/2020 08:01

So still a few weeks left in the pot, all redundancies have been paid for, and running costs are a fraction of what they were. Looks like a small placing coming to keep the lights on until someone comes along with a bag of money..

What interested me was the start of the REGULATORY process to return shares back to original owners. Is that implying there is not going to be a legal battle with the associated costs that would involve?

[funtimejonny] 13/2/2020 07:50

I didn't see any reference to Spanish Point or for that matter Dunmore / Helvick / Hook Head. Maybe I missed something, but would be interested to know if Cairn are still in the frame or have they thrown in the towel as well?

The gas component of Barryroe is really quite small if the information we have been fed to date is to be believed, so this RNS just looks like it has been written to appeal to the green lobby.

[hermana3] 13/2/2020 07:38

And no partner for the Dunquin water project either.

[raisethestake1] 13/2/2020 07:33

Is feider Linn.

[hermana3] 13/2/2020 07:29

And no dodgy partners for Barryroe this time lol. Alan is a veteran in this sector and hopefully can smell a dirty old rat unlike his naïve predecessor.....

[sirrux] 13/2/2020 07:23

Would be great to see the majors helping the juniors with their carbon neutral challenges. Low risk, tremendous potential for both parties.

[hermana3] 13/2/2020 07:22

Has to happen this year as how can Alan raise new dough without a Barryroe drill?

[hermana3] 13/2/2020 07:19

Well Barryroe is the main focus and it is getting some interest. Oil proven and major gas potential too and gas storage possibilities. Dunquin has lost another Major but could BP step in? Alan must be trousering much less than his high living predecessor as we have 2 extra months until funding needs a top up....

[czar] 13/2/2020 07:18

I think this will happen this year, time to average down or get some LOGP imho

[jack jebb] 13/2/2020 07:15

Thus has promised much, and delivered nothing, forever.

[steelwatch] 13/2/2020 07:13

That's one way of reading it, but....

[molatovkid] 13/2/2020 07:09

Sounds like its lights out here chaps....