Lansdowne Oil & Gas Forum

Firm placing of 20.75 million new ordinary shares at 5p per share and issue of loan note for total fund raising of £2.9 million

* Proceeds of placing and loan note are to be used to meet company's existing liabilities and working capital requirements to end of 2015

* Proposes to raise gross proceeds of £1,037,682 before costs through issue of placing

Shares my rise as well as fall...

SEQUA PETROLEUM, a publicly listed specialist oil finance company, is poised to take a stake in Providence Resources’ Barryroe field off the south coast — the most advanced oil exploration project in Irish waters. Neither company would comment this weekend on the proposed farm-in deal. Speculation rose last week when a new company, Sequa Petroleum (Barryroe), was registered in the Companies Registration Office. The new company has listed its place of business in Ireland as “c/o Providence Resources”. One source said the company was still talking to “a number of interested parties”. Sequa Petroleum is a subsidiary of Sapinda Holding, an investment company established by German business prodigy Lars Windhorst. Sapinda Holding is reported to have invested €2bn since it was established in 2009, with oil and gas assets taking up a large proportion of those investments. According to the Sequa Petroleum (Barryroe) memorandum of association, the company goal is “to exploit natural resources of every nature including oil and petroleum”. The company’s website states that it specialises in completing farm-in deals of between $100m and $500m (€80m-€400m) to bring assets up to first production. Sequa Petroleum’s participation in Barryroe is likely to help fund the drilling of further appraisal wells that are needed before the Celtic Sea field is taken to production stage. Tony O’Reilly Jr, the Providence chief executive, told investors in September that negotiations “are now at an advanced stage and we are working hard to satisfactorily conclude this with the objective to return cash to the business and obtain capital funding, while also ensuring that Providence retains a material stake in Barryroe”. The negotiations will not have been helped by a plummeting oil price that has dented the stock market valuation of exploration companies. Sequa Petroleum has a market capitalisation of €608m. According to a presentation on its website last month, the company is pursuing significant farm- ins and joint ventures in northwest Europe. It has identified an undervalued asset, built a relationship with a local partner and is qualifying as an operator

Well stated.. [link] Strong buy

Sad response to that RNS. 1 minute spike or thereabouts. I'm out.

So another free exploration play for an already extremely cheap company. Nice!

HI guys, might be relevant here but I have been involved in several long periods of negotiation in my life, it has been my experience that those you can detach themselves emotionally from the time period involved tend to be the best negotiators, you keep at it until you get the deal you want and NEVER become emotionally attached to the end of the negotiation...

If only

good volume already

firm rise this morning