Providence Resources Share Discussion Threads

[p5tvr] 18/2/2021 08:35

Put me down for 1st April

[amran01] 18/2/2021 08:33

Yes the volume has been shockingly low either way. Looks like everyone has taken their seats ready for the horses.. Volumes will increase prior to the bond news. There's always leaks happening.

[hermana3] 18/2/2021 08:27

Put me down March 5th(Friday). A pure guess naturally.

[hermana3] 18/2/2021 08:25

Am, Will rise like a hare when bond news in. This illiquid yoke responds wildly when any volume of buying or selling occurs.

[amran01] 18/2/2021 08:24

Pure guess.. I reckon 1st March for bond news. (It's a Monday)

[amran01] 17/2/2021 20:53

Bond news should be coming soon. The question is how much will the market push the share price up by? Let's hope it's something material. The volume in both PVR and LOGP have been very low recently and the herd are not jumping in it just yet. I suspect once the funding news is announced, people will start buying back in. A lot of folks not selling out right now either, holding tightly for the news. Feb is nearly gone, maybe news in early March.

[patfishing] 17/2/2021 20:25

Thank you both , let's hope we will be toasting to that soon enough.

[raisethestake1] 17/2/2021 20:00

Bentley oil has API of between 10-13.please see following explaination.(pasted)
A crude oil will typically have an API between 15 and 45 degrees. Higher API indicates a lighter (lower density) crude. Lower API indicates a heavier (more dense) crude. Generally, lighter (high API) crudes are more valuable because they yield more high-value light products when run through a refinery.
Barryroe has API of 42,albeit waxy but very high quality. Good enough to drink😆

[contrarymary] 17/2/2021 19:50

Bentley is thought to be a little smaller. A share of both would be huge. Less risk and massive increase in the potential for actually moving forward. Imagine the share price if they both performed as expected.

[patfishing] 17/2/2021 19:41

Hermana would Bentley be as big as our one.

[hermana3] 17/2/2021 17:39

1cag, Wouldn't mind even a very wee piece of Bentley and there's no smoke without fire....

[1cagney] 17/2/2021 17:23

Well at least we know where the Sunday Business Post got their 'scoop'. The question remains what was the motive of the 'multiple sources' floating the merger idea.

[hermana3] 17/2/2021 15:11

p5, Alan Linn is not raising the money(he made that very optimistic prediction). Spoton say Q1 timescale and hope they knock it out of the park too.

[hermana3] 17/2/2021 13:20

p5, Q1 is the target to get bond deal done and we have 6 weeks remaining in this period. Too early to start worrying over the bond deal getting done on time.

[srvsrv] 17/2/2021 10:39

under a year ago the oil price was 20$...

The trend is certainly upwards - I know when/if we hit 100$ the production will be raised from Opec+ meaning lower prices again. But about 60-80$ is ok:)

[srvsrv] 17/2/2021 10:36

yes, the inflation is coming (rising commodities) - see how the bonds have started rerating.

[p5tvr] 17/2/2021 10:36

$100!!!...If that's the case then why is it taking so long to get the bond deal done?

[hermana3] 17/2/2021 10:32

Sr, $100 spot price will require a serious rip roaring return World economies growth in 2022. Very possible indeed....

[srvsrv] 17/2/2021 10:21

"double digits" is a big spread. Should be in the higher end. The forecasts of a oil price of maybe 100$ next year makes Barryroe extremely valuable.

[raisethestake1] 17/2/2021 10:11

When the market prices us for oil in the ground recoverable we can get well into the double digits.If the market sees a clear route to production this will happen

[roadster750] 17/2/2021 08:16

Brent on the march again today as it hits $64.

[aimbagger] 17/2/2021 08:14

Agree that's a brilliant article, another reference to Bentley field. Very confident here, bond finance RNS'd and we're finally on our way, the market has to then take note and start pricing in the value of oil in the ground.

[steelwatch] 16/2/2021 23:26

18 December

[roadster750] 16/2/2021 22:51

Article posted by zephra on lse.
google translated from Norwegian so a bit patchy.
Dec 2020

"It is a large field and the estimates suggest that there is a lot of oil there. But you can never be completely sure until you've plunged your cop into the reservoir.

That's according to Jan Vatsvåg, chairman and second largest shareholder in the oil company SpotOn Energy.

Under the radar, the unknown Stavanger company has negotiated an agreement to buy half of the Barryroe field, located 50 kilometres off the southern coast of Ireland.

The field is considered to be one of the largest undeveloped offshore oil and gas fields in Europe.

Recoverable resources are estimated at around 400 million barrels, with a great potential for more discoveries with issued reservoir sections.

"It is a very interesting field," says Vatsvåg, pointing out that the quality of the oil is good with low viscosity.

Going to get money.

It is the Irish companies Providence Resources and Landsdowne Oil & Gas that are selling down in the field where SpotOn Energy now becomes operator, provided the deal goes through.

A final agreement contingents government approval and that SpotOn secures funding of at least $166 million - around kr1.5 billion - for the development's first phase.

The money will be collected in the Norwegian bond market. In this regard, Pareto Securities has been hired as a facilitator.

"The plan is to go into the market in the new year," says Vatsvåg.

However, the development requires more capital than that.

Providence has long tried to raise capital, but it has become increasingly difficult as investors' focus has turned away from oil and gas. Last year, among other things, an attempt with Chinese stakeholders.

"The problem is that you need much more capital than can be collected in the market in normal development. In our model, the capital need is significantly less from external investors and bondholders, and they get very good conditions," vatsvåg argues.


TO RAISE MONEY: Jan Vatsvåg is chairman and major shareholder of oil company SpotOn Energy, which is about to raise money for a major field development in Ireland. In addition, they are considering a field on the UK continental shelf.
Collaboration with giants

The way SpotOn Energy will solve the capital challenge is a close cooperation with suppliers.

"We have established a new model for field development by joining several of the larger oil service companies in a consortium that takes a large part of the expenditure. When the oil comes up, they get a share of the profits," says the chairman.

The consortium that will finance the development of the Barryroe field together with SpotOn are giants Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS, and Aibel.

"We envisage an early development so that we can start production. Then we can plan further for a major development of the field in the next phase," says Vatsvåg.

In addition to its own share, SpotOn Energy will finance Providence and Lansdowne's share of early development through a loan secured with future cash flow from production.

When the first commercial barrels of oil are lifted from the field, SpotOn Energy will receive warrants, which give the right to subscribe for 60 million shares in Providence Resources at 0.17 euros per share. On Friday, the exchange rate was 0.05 euros.

Early development includes four wells and floating production facilities. These will be linked to a floating oil production vessel (FPSO). The start of the campaign is scheduled for late 2022.

"What we have not landed on is which FPSO to use, but we are in negotiations with different companies.

Sniffs in British field

Barryroe is probably the last major field on the Irish continental shelf to be explored after Ireland last year put an end to further oil and gas exploration.

But it's not just the Barryroe field SpotOn Energy is working on, it's also under consideration.

"We have made an assessment of the costs of the development and are currently evaluating. We are not quite in the finish, but we are working on it," says Vatsvåg.

Bentley, located just east of Shetland, is considered to be the largest undeveloped field on the UK continental shelf. The field is who heleid by Whalsay Energy, which took over when its predecessor went bankrupt in 2017.

Since last fall, Whalsay has been looking for a partner. At that time, the company indicated that oil production could start in late 2023, reaching up to 45,000 barrels per day.

On the ownership side of SpotOn Energy Holding are a number of investors from Stavanger and Sandnes. The largest shareholder is Alf Ståle Helland, who is also managing director. He owns around 35 per cent, while Vatsvåg holds 25.3 per cent. In total, around 20 shareholders have contributed to the development of the model.