Lansdowne Oil & Gas Forum

linkoping 20:51 Sequa might back him Mamms 20:45 Re: The Cuckoo's Nest Thanks for posting this Sobeit. I find the bit that says" there are rumblings a management-led take-private could materialise." quite worrying. The SP has been driven into the ground by management's failure to do a deal- then they'd swoop in and buy it subsequently do a deal? It seems unlikely that they would be backed by anyone though, What a balls. Adven 20:35 Full text>Providence puts faith in O’Reilly as pressure mounts Gavin Daly Published: 7 June 2015 Print At least someone in the O’Reilly clan is in the money. As his father endures an insolvency arrangement in the Bahamas, Tony O’Reilly Jr has been handed another two years at the helm of Providence Resources, the oil and gas explorer best known for its long-running adventures with the Barryroe oilfield off the Cork coast. O’Reilly Jr’s contract was renewed last month, and is subject to one year’s notice period, reveals the Providence annual report, which was quietly made available last week. There was no stock exchange announcement of his reappointment. It’s a good gig. O’Reilly’s pay rose by €22,000 to €516,000 in 2014, a year in which the company’s share price fell from a high of about €3.50 to below €1. The shares are now at 31c. The boss soldiers on regardless, marking 10 years as chief executive of Providence and 18 years since he founded the company. There has been plenty of turnover on the share register since then, and the current crop of investors can be forgiven for wondering when Barryroe will deliver on its reported potential. Not any time soon, is the answer. All things going well — and things have not gone well for Providence — the company will soon pin down a farm-out partner to take on the cost of developing Barryroe. Then it has to drill an appraisal well, before moving on to extraction and production. Sources suggest a phased approach is likely, meaning the first oil will not flow until 2019 or even 2020 — up to eight years since it triumphantly announced 300m barrels of recoverable oil were there for the taking. As Davy, the company broker, put it in a recent note, getting wells drilled is “ultimately the only source of real value creation” for Providence. Until then, it is a company “straining to develop its assets” in a difficult market. Providence says it is continuing discussions with a number of potential partners who are active in the Barryroe data room. “The recent rise in both oil prices and M&A activity provides a better background environment for the company to conclude matters,” the annual report declares. Sources say there are as many as four parties in the data room, possibly two oil outfits and two private equity firms. If a deal cannot be done, there are rumblings a management-led take-private could materialise. To do that, O’Reilly Jr would have to find a funder. He would also have to offer a significant premium to the anaemic share price, given he has long been telling shareholders the company is significantly undervalued. His task may have been made easier by a €25.9m share placing in March at the equivalent of 34c a share. New investors who bought in at that price could happily take, say, 60c or 70c a share and walk away. Investors who have been in Providence for the long haul — some since the heady days of €8 a share in 2012 — may be in no mood, however, to hand the firm to the man who has been at the wheel all along. Providence, of course, is only 80% of the story at Barryroe. Two other quoted companies, and surely thousands of individual investors, also have their fates tied up there. Lansdowne Oil & Gas holds the 20% balance. San Leon Energy, a former Barryroe shareholder, still has a 4.5% “net profit interest” (NPI) in the project. Like Providence, their shares have collapsed. Like Providence, they have carried out rock-bottom fundraisings to tide them over to the day when, hopefully, Barryroe delivers. Lansdowne, listed on the AIM, raised £1m (€1.4m) in a March share placing and has also issued loan notes worth £1.8m to LC Capital Master Fund, its biggest shareholder. A strategic review of its operations, which may lead to a sale, has been going on since April. San Leon, headed by former MMI stockbroker Oisín Fanning, is raising £29m in a new share placing — a figure not far off Providence’s market cap. The placing will significantly dilute existing shareholders but is designed partly to protect the Barryroe NPI. In shareholder documents, San Leon said it wanted to hold on to rather than “monetise” — sell — its Barryroe interest. “The company expects to benefit from considerable cash flow arising out of the NPI, in excess of $700m [€630m] over the field life,” it said. That calculation is based, of course, on figures from Providence. Those numbers — and Providence’s managers — will surely get a going-over when the explorer’s annual meeting takes place in Dublin on June 26

One of Britain's richest hedge fund managers has pledged to invest €22m in Oisin Fanning's San Leon Energy. SHARE Martin Hughes' Toscafund will own a 41.5pc stake in San Leon if the deal comes through. Hughes was recently named the UK's 9th richest hedge fund manager, with a fortune of £510m (€700m). The move comes as San Leon has agreed to raise a total of €40m in a share placing that is subject to shareholder approval, a capital reorganisation and the granting of a Rule 9 waiver by the Irish Takeover Panel. The waiver would allow the deal to proceed without Toscafund having to make a takeover offer. Fanning's firm is raising the money to allow it hold on to a 4.5pc net profit interest in the Barryroe field off Cork, the flagship asset of Tony O'Reilly Jr's Providence Resources. "The company expects to benefit from considerable cash flow arising out of the net profit interest, in excess of $700m over the field life," San Leon said in a statement. Fanning, the former chief executive of Smart Telecom, said "the proposed significant increase in Tosca's interest speaks volumes about their belief in the company's future and growth prospects. "The funds will help transform San Leon into a cash-generating producer, and will bring other assets towards development." San Leon made headlines last week after it was hit with an €18m judgment by the International Court of Arbitration of the International Chamber of Commerce. The company was brought to arbitration by Dutch investment company Avobone, from which San Leon subsidiary Aurelian Oil & Gas aimed to buy the final 10pc of a Polish asset that Aurelian already 90pc owned. San Leon said it will appeal the ruling to the UK Commercial Court. "San Leon contested these claims robustly at the hearing of the Court of Arbitration and believed it had a material advantage in the case," the company said. "In Aurelian's view, this loan was a standard industry practice mechanism that was used to fund Avobone's share of the drilling and other field-related costs in a tax-efficient manner - and should only have been repayable had Avobone exited after the field had generated sufficient cash-flow to repay the loan. "As of the timing of Avobone's exit in early 2013, the field had yet to generate cash-flow. Following consultation with counsel, the company remains convinced that Avobone's case is substantially without merit... the company is thus filing an immediate appeal to the UK Commercial Court".

Following the suggestion in the ST that there was a "major" back in discussions re BR. I wonder if its possible that the re entry of the major coincided with the open period commencing on LOGP.Major returns, enters discussions with PVR whilst commencing buyout discussions with LOGP....wishful thinking?!!!

[link] deal done for Sequa

got another 20k on the death GLA

sequa Price been moving up lately [link]

Providence-Fastnet-landsdowne merger I believe these three companies Will merge. Carol Law CEO and TOR Commercial Director. Fastnet Will get 1:9 shares i.e circa 37m shares and Landsdowne Will get 1:5 i.e circa 32m shares to give circa 210m shares in New Providence. This Company could following Petronas middleton drill choose to drill deep Kinsale, Barryroe and Amergin. Positive results following midddleton drill could help finance these drills. If all went Well

LOGP Merger or Sale Believe that Barryroe Farmout will go ahead and that the possible sale or merger of Landsdowne is likely part of the process. The likely buyers of Landsdowne Oil and Gas are 1: Fastnet (This would be a merger) 2: Cairn Energy (Also a Scottish outfit). 3: Sequa (As part of Barryroe Deal) 4: Petronas Believe Fastnet under Carol Law can see the synergies between them and LOGP. After a merger the two would have a very commanding position in Celtic Sea. A merger followed by a farm out on Barryroe would give the company some cash to thereafter drill deep Kinsale and possibly Amergin. If middleton gas field is successful with PETRONAS you might see Petronas or and American Major expressing interest in the combined LOGP / Fastnet Operation. This would be enhanced if a drill at Amergin or Deep Kinsale comes up a success. Cairn Energy also a very likely suitor. Cairn could buy LOGP for lets say 80 Euros by issuing approx. 30m shares. Thereafter could give some up front cash payment to Providence for a Farm in to more of Barryroe. This cash could then be used by Providence to drill Spanish Point with Cairn. Providence could pass additional % holding of SP to Cairn before drilling there. Cairn need to add to its reserves. An easy way and a very high chance of success for them would be to take the path mentioned. Watch this space. Finally Sequa and Petronas must be in the picture as well

Believe that Barryroe Farmout will go ahead and that the possible sale or merger of Landsdowne is likely part of the process.

The likely buyers of Landsdowne Oil and Gas are

1: Fastnet (This would be a merger)
2: Cairn Energy (Also a Scottish outfit).
3: Sequa (As part of Barryroe Deal)
4: Petronas

Believe Fastnet under Carol Law can see the synergies between them and LOGP. After a merger the two would have a very commanding position in Celtic Sea. A merger followed by a farm out on Barryroe would give the company some cash to thereafter drill deep Kinsale and possibly Amergin. If middleton gas field is successful with PETRONAS you might see Petronas or and American Major expressing interest in the combined LOGP / Fastnet Operation. This would be enhanced if a drill at Amergin or Deep Kinsale comes up a success.

Cairn Energy also a very likely suitor. Cairn could buy LOGP for lets say 80 Euros by issuing approx. 30m shares. Thereafter could give some up front cash payment to Providence for a Farm in to more of Barryroe. This cash could then be used by Providence to drill Spanish Point with Cairn. Providence could pass additional % holding of SP to Cairn before drilling there. Cairn need to add to its reserves. An easy way and a very high chance of success for them would be to take the path mentioned. Watch this space.

Finally Sequa and Petronas must be in the picture as well

Good News as it shows confidence in Landsdowne