Providence Resources Forum

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Agree totally on Salaries. If They had cut costs a couple of years ago we Would not Have the Melody Finance issue worrying us this Year. Cannot understand Pagent and institutions. They must Have seem something they are happy about

d not 20%. It's concerning

Hi Spuddy, the salaries of PVR board way beyond their performance and they are burning cash and company will be on its knees. Pvr board need to be aggressive in salary cuts

No Crystal ball just an opinion. The more Oil that is produced the greater the decline volumes. 6.5% is the average decline rate per year on conventional oil (Opec and Non-Opec, Onshore and Offshore). Thus if demand increases and so does production the 6.5% becomes the decline rate of an ever greater quantity. The World needs to find ever greater quantities of Oil and bring it into production every year. Given that investment in future exploration has been kyboshed and ongoing projects have also been delayed or cancelled and given that shale has ben curtailed a shortfall is likely to present itself by 2017. If you are looking at Providence bearing this in mind and target Barryroe Production for 2019/20 then you will likely be selling oil in a very favorable environment.

Hi Spuddy, do you have a new Crystal ball which confirms all your predictions? I admire your enthusiasm but the real world and theoretical predications are two very different things

Also think OPEC Whilst it might not reduce Its ramped up production presently 32.1m barrels will probably signal a willingness to make way for future Iranian supply within this 32.1m barrels. OPEC likely to raise Its oficial production cuota from 30m to this 32m volume. This Would give a Little lift to oil Price which could climb to the 50-60 Range in shirt term. Saudi is producing at near Its capacity now. It cannot ramp up production much more. It has damaged expensive deep sea drilling projects ( ongoing and Future). It has hurr the Frackers. Frackers will bounce back but only with sustained price rise and only If demand warrants. Think Investors will be wary of investing in shale for a while. Barryroe and fields Like it will start to look interesting again.

Sequa: You can buy shsres for 16 pence at moment but You cannot buy 25 percent of shares. Shares That trade are only those held By MM and a few small retail holders. As to why - The Market Is Going to turn in 2017. With natural declines and increasing demand the World needs between 4 and 5 million barrels of New Oil every year. Aquuring 25.6 percent of Company with 55m shares for 90m Will also boost share price on Back of two appraisal drills easily to 1.50 euros. Successful drills at Barryroe and or Spanish Point On back of natural declines and increasing demand leaves Providence a take over target at the Very least for Big players who Will be scrambling to look for new Resources by 2017

Spuddy, why on earth would Sequa pay E1.63 for shares that they can buy in the market £0.16? Its unlikely to do even that given that its Asian investment of over $100m rolled up looks like a dud and they have issued caveats on their ability to close out their Norwegian contracts? u

Providence have 75m shares that they can issue. Would be agood idea for Providence and Landsdowne to merge i.e. (1:7) i.e. 20m shares to Landsdowne to Give 140m +20m = 160m. Thereafter 55m shares to be issued to Sequa to give a tolat of 215M shares. This would give Sequa a 25.5% holding in the company. If Sequa were to pay 90M in cash to Providence for the shares i.e. 1.63 Euros per share this would leave the company with 70M in cash after having paid back loan to Melody in June. Providence could then use 60M of this to finance appraisal drills on Barryroe and Spainish Point. Good results here would leave us owning 100% of Barryroe (Less 4.5% NPI to San Leaon) plus 58% of Spanish Point, plus Atlantic Licences plus Landsdowne´s licences. This would then be a very valuable takeover target or eels with Sequa on board could seek to advance projects with 3rd party funding and or farm outs