Providence Resources Share Discussion Threads

[funtimejonny] 02/8/2021 17:13

Of course you are right. And the windfarm project is supported by the locals in waterford wexford wicklow for the jobs and prosperity it will bring. This lot are blow ins same as the bunch.over in clare were.

[funtimejonny] 02/8/2021 12:15

hxxps://secpa.ie/ Have a read of this and what do you think this lot will make of Barryroe?

[peaeff] 01/8/2021 23:02

The above article makes a lot of accusations regarding past and current management. How much is true, and how much is based on the opinion of the writer is a matter for each of us to consider individually.

The one thing that I consider it does indicate, is that since Barryroe became a factor in our lives. the whole of management in the last 10 years has failed us miserably and none have, it would seem, the slightest remorse despite the lucrative pay packets, and other considerations, afforded by PVR.

I don't recall a single word from any one of them, in all that time, which showed any sign of regret but instead their failures to deliver Barryroe have been swept under the carpet as though they never happened.

If you believe in the article in it's entirety and in particular the values it places on Barryroe, you must ask the question, 'why has no-one wanted to take on the development'. I have often asked myself that question whilst remaining very over invested and clinging to the hope that things get sorted

Recent events are, once again, very disappointing but as usual there has been absolutely nothing from management in the way of detail as to what is going on other than a further delay and idle announcement that the capital needed will be raised by very early January. Thanks but I seem to recall a similar prediction before.

Still holding. Regards.

[funtimejonny] 31/7/2021 15:32

Unlike my retirement pot which has been trashed by all this arsin around for the last decade. That's why I'm very cautious about this one now. Kept a few LOGP but not here anymore, but keep an eye on the thread as LOGP is joined at the hip.....

[hermana3] 31/7/2021 08:42

Jonny, And all this faffing about with Barryroe has forced Providence to relinquish Spanish Point which was always "The Jewel in The Crown" pour moi. There will be a book written about Providence saga with Barryroe the feature in the final chapter. Alan Linn's post is safe for the time being....

[funtimejonny] 31/7/2021 08:18

Thanks Panadin for posting the article. Makes interesting if depressing reading. What a saga this has been. 10 years in the making and so many people have lost such a lot of money here. Myself included.

[hermana3] 30/7/2021 19:11

ps, Moneybags was his usual lazy self on the research front. Pat walked the plank as he presided over consecutive dud farmin partners. Linn is the man to talk to bankers as he understands Barryroe and is extremely articulate. Chairman Menton is held in high esteem by financial community also.

[ps200306] 30/7/2021 17:04

Somewhat odd that the Phoenix thinks PVR needs a geophysicist at the helm. PVR's number one pressing issue right now is raising finance. They need someone who can talk to the bankers, not an oily.

[srvsrv] 30/7/2021 16:24

thanks panadin.

3 things:

1. Alan Linn has in a interview with ZAK said that when Alan joined PVR already was in a farmout process with SpotOn. So it is Pat who started the interaction.
2. Linn vs. Boldy. Lansdowne is a partner so Boldy covers the geo-area.
3. worth 75 times - it is simpel math - it is 7,5.

So all in all not the best article ever seen...

[panadin] 30/7/2021 15:02

srvsrv: here you go!
Phoenix magazine article
Top brass weighs down Providence share price
THE FAILURE of Spot-On Energy to deliver the nonrecourse funding elements of Providence Resources’ development programme, as envisaged in the farm-in programme for its Barryroe licence, inevitably meant there had to be changes. What was not expected was that it would be the non-executive chairman Pat Plunkett who would take the fall rather than the CEO Alan Linn, who it was who brought in Spot-On last year. While Plunkett may be having his own difficulties funding T5 Oil & Gas, a company he founded in July 2013, clearly it is Linn who should have exited Providence. Meanwhile, the market continues to look unfavourably on his performance and the share price remains massively discounted.
The unfortunate shareholders in Providence Resources have had to put up with plenty since the original (Atlantic Resources) company was launched back in 1989, with numerous dud wells drilled under the Atlantic banner and then as Providence, under former CEO Tony O’Reilly Jr. Under O’Reilly Jr’s management, Providence spent big bucks drilling prospects in the south Celtic Sea to little effect. Happily, the expensive drilling programme for the Barryroe licence in 2011, which took six months, proved successful and out of the well flowed 4,000 barrels of oil equivalent, indicating that Barryroe was a real prospect. On the back of this O’Reilly Jr raised €70m in early 2012 at €3.95 euro a share – an awfully long way off the 4c they are trading at today. Instead of quickly signing a decent development deal, years later Providence finally delivered a $200m farm-out agreement with the Chinese fund company APEC, which committed to fully fund a five-well drilling programme but never even came up with the promised initial $5m and the plug was pulled by Plunkett. That was the end of the road for O’Reilly Jr, although he was very handsomely compensated.
While Plunkett was correct to clean out the old management, he made a poor decision when appointing Alan Linn as the new CEO in January 2019. On the surface, Linn looked to have significant industry experience, having spent 10 years with Exxon, followed by stints at Lasmo and Cairn Energy. He then joined a small startup, Roc Oil, and became CEO in 2010. The company, however, lost €31m in 2014 and was subsequently suspended from the Australian Stock Exchange. Linn jumped ship to the Nigerian Afren Oil Co, where he again became CEO but again this venture flopped and ended up in administration in July 2015 before being delisted from the London Stock Exchange.
UNDERWHELMING:
Next up for Linn was Third Oil where he became COO in 2017 but “following a strategic review of the business, the decision was made to divest the offshore business and focus on the onshore”. Linn ended up as the CEO of the offshore business in July 2019 before exiting six months later to join Providence.
Apart from this underwhelming career path, Linn simply doesn’t really have the expected skills to run an oil exploration company as he is neither a geologist, geophysicist or production engineer, but rather a chemical engineering graduate. Not too surprisingly, therefore, he made the extraordinary decision to essentially farm out the whole of his role to SpotOn Energy.
At the time Plunkett advised, “Alan has revised the business plan to focus primarily on the success of and appraisal of the Barryroe field”, noting the CEO had initiated a farm-out process to support this strategy. This led Providence to sign “a non-binding agreement with Spot-On Energy to farm into Barryroe with an exclusive period until October 31, 2020”.
Spot-On itself was essentially a £2 company and it is bewildering that Linn would want to bind Providence to an eight-month agreement, during which Providence would be precluded from talking to any other operators, on terms that were never explained to shareholders.
After failing to deliver anything by the October 2020 deadline, Linn nevertheless signed a “conditional farm-out agreement” in November 2020. Predictably, perhaps, “Spot-On Energy was unable to meet the farm-out conditions as agreed or secure non-recourse financing for the full project development capital requirement”. Providence duly terminated the agreement in April 2021.
According to Linn, in his review for the 2019 annual report, Spot-On Energy was to “manage the project interfaces and consider themselves to be a facilitating operator and project manager”. Given that this is surely exactly the job of the CEO of an exploration company it is hard to understand exactly why he is paid €295,000 pa and last year landed a “share-based payments expense of €400,000”;. Having wasted a full 12 months with Spot-On, Plunkett opted to exit the scene having also been in situ for the APEC debacle, and stood down from his €100,000 job as chairman of Providence “to devote more time to my other business interests”. Linn, however, remains in situ.
The key fiduciary duty of a chairman is to hire or fire the CEO and Plunkett should have ousted Linn as chief executive and replaced him with a geophysicist, preferably with real experience in the Irish offshore sector. The obvious candidate for the top position is Steve Boldy who had headed up Lansdowne Oil & Gas since 2006 and has been studying the Barryroe oilfield for 15 years.
Given that Barryroe is only 50 miles offshore Cork and in shallow waters (only 100 metres deep), it would be cheap to drill and develop with a floating proTop brass weighs down Providence share price THE FAILURE of Spot-On Energy to deliver the nonrecourse funding elements of Providence Resources’ development programme, as envisaged in the farm-in programme for its Barryroe licence, inevitably meant there had to be changes. What was not expected was that it would be the non-executive chairman Pat Plunkett who would take the fall rather than the CEO Alan Linn, who it was who brought in Spot-On last year. While Plunkett may be having his own difficulties funding T5 Oil & Gas, a company he founded in July 2013, clearly it is Linn who should have exited Providence. Meanwhile, the market continues to look unfavourably on his performance and the share price remains massively discounted.
Given that Barryroe is only 50 miles offshore Cork and in shallow waters (only 100 metres deep), it would be cheap to drill and develop with a floating production storage offshore vessel and, according to Providence’s consultants, would have a cost of production of only $25 a barrel. At the current oil price of €75 a barrel, with 300 million barrels recoverable, this means that Barryroe offers a potential profit of a whopping $15bn.
The largest and key shareholder in Providence is Nick Furlong, who has had an impressive track record in making killings from investments in the likes of Datalex and Donegal Investments. He has, however, no experience of the oil exploration game but with a 14% share held between himself and his family holding company, Pageant, he is clearly vey influential when it comes to what happens inside Providence.
In his 2020 chairman’s review, Plunkett went out of his way to advise, “A number of our key shareholders have invested considerable time and effort in understanding the issues which need to be progressed … and have provided invaluable advice to seek to transition the business”.
Bringing the retired Peter Newman, who has significant experience in the oil business, onto the board is not the solution. Nor is the new chairman, Jimmy Menton, retired KPMG accountant, who knows even less about Irish offshore oil exploration than Linn – a CEO who surely needs the right sort of chairman above him.
SERIOUS MONEY
In the right hands Barryroe could be worth very serious money but the project needs somebody who has a full technical understanding of the nature of the oilfield, which extends more than 50 miles by 20 miles, how to develop it and who to get to do this. Furlong seems to think that Linn, who has already failed dismally to deliver, is the right solution. In the meantime, the unfortunate Providence shareholders see their shares trading down at 4c, at which the whole company is capitalised at a pathetic €40m. This is despite the fact that even based on the worst-case calculation, Providence should be worth at least $1 a barrel for its recoverable oil. This would make the company worth potentially $300m or about 75 times the share price. In the right circumstances, Providence could be worth $5 a barrel in the ground, which would put a possible value on the company of a lot more than $1bn. The share price is therefore clearly a real vote of non-confidence by the market in Alan Linn. The question is just how long can he last and when will Furlong run out of patience.

[swizz] 30/7/2021 10:05

Courtesy of Flombo on LSE,…GL S

“Summary of Phoenix article”

1. Basic history of the past decade …bla..bla,,bla
2. History of all Alan Linn’s career..which its says is not confidence inspiring
3. Steve boldy of Landowne oil and gas should have got the job of ceo
4. In the right hands providence should be worth , on worst case scenario , $1 a barrel for its recoverable oil, making the company worth $300m or 75 times the share price ( ?????). “ In the right circumstances, providence could be worth $5 a barrel in the ground , which would put a possible value on the company of more than $1billion
5. It’s final summary is that the share price is clearly a vote of non-confidence by the market in Alan Linn. The real question is how long can he last and when will Furlong run out of patience.

[srvsrv] 30/7/2021 09:50

anyone with access to the article in Phoenix magazine?

[cephalosaurus] 30/7/2021 08:48

Herm, often the most dangerous are the brainless

[hermana3] 30/7/2021 07:47

A one trick pony like Ryan fails to see renewables alone wont fill the gap. If he had a brain he would be dangerous....

[swizz] 30/7/2021 07:34

“Even in the face of outages at a number of gas-fired power plants, gas continues to provide an important foundation for electricity generation and back-up to renewable energy when required.”

[hermana3] 30/7/2021 07:24

F.A.O Eamon Ryan and his em er Advisers

[srvsrv] 29/7/2021 19:03

Linn said that the agreement with spot on was settled when he joined pvr - could not cancel it. So that is why pat stopped as he is responsible

[hermana3] 29/7/2021 18:30

Wee article in Phoenix magazine today on Providence. Moneybags has soured on Linn and blames him for current impasse. Calls for BOD to can him toute suite and replace him with Steve Boldy!!!! Moneybags must be hitting the sherbet bigtime...

[hermana3] 23/7/2021 18:59

Wee piece in The Indo today on new Directors here. Heavyweights indeed...

[hermana3] 23/7/2021 18:56

Raise,Cathal Friel in his O&G days knew how to entertain select privates. Enjoyed a fine supper on his company in La Stampa after the Irish O&G Day about 6 years back. He is a smart guy and lucky Luke sure aint a dummy either.