Providence Resources Forum

So they had circa 9m on hand Dec 2014 with 26m from placing. So that is 35m. 4 Million paid back to melody in june plus 6m for transocean, plus 3 million in deferred seismics, plus 2 million in interest payments for loan facility plus 4 million in salaries and expenses gives approx. 35 million - 19 million =16m. Lets say that they use another 6 million up to next June 2016. This leaves a hole of 10m. Thus let us hope that market sentiment better by June 2016 and a Barryroe Farmout concluded. If not there will be another placement for another 20M maybe may 2016. But if Oil rebounds and a deal done things may change

Actually no Spuddy... Providence re-scheduled the payment of the $20 million Melody debt to May 2016.(See June 15 AGM presentation page 23) So in 9 months they are going to have to raise this amount plus another $10 million going for another year. The value of providence is less than $15 million now. Cant see them raising that amount of money. What about Libyan oil increases? Also what about Japan restarting its nuclear reactors so it will be importing much less oil? TOR is a joke who has lost shareholders $250million so far and it will be $400million when the company goes belly up in the next 6 months.

Providence have the cash to get to June 2016. By then they should have approx. 13m in cash. This would leave them 7m in debt. This can be rolled over and finally belts tightened. Oil markets will have turned by then. Shale will have been damaged sufficiently by then. Saudi-Russia etc will impose thereafter a cub in production. 1% will do the job and will accommodate for Iranian Oil. The real issue is not about over supply it is about market share. The smaller shale companies will go to the wall and the bigger Oil companies will take their assets and ensure that over production is curbed as it is in no ones interest. Just remember nothing has changed at Barryroe. In fact Providence has just added potential reserves and Spanish Point is a discovery. It is always depressing to see share price fall. However it is completely wrong to believe that the big institutions are bailing out. They are not. All holding their shares. Barryroe will be farmed out and things will turn. It would be nice in the meantime to see TOR and the board act correctly and cut their salaries and reduce non-essential expenses. Kinsale Energy are crazy not to be looking at Barryroe - for its gas alone. Landsdowne will wait until year end for either a Farm out on Barryroe or will sell its stake. Landsdowne is totally under valued as well and it is just negative sentiment on Middleton which has contributed. PETRONAS may buy Landsdowne now and do a deal with Providence on Barryroe. Very little volume in Providence. Market makers just scooping up shares on negative sentiment. They drop the bid and people panic. So my advice is hold tight. The Oil Markets will turn. Also the EIA has more or less sated this fact albeit producing some very dubious figures which completely overstate the over supply in World Oil Markets. Oil is cyclical and there will be a spike ahead. The idea of shale efficiencies is nonsense. The shale companies with oil at $100 generated 250bn in Junk bond debt. How will they manage at $50. Hedges that they bough to guarantee a fair price for future production are almost gone. The Saudis are shorting paper oil markets to ensure no more hedging available. In October banks will reassess credit lines to the shale players. Deep sea/Canadian tar/Brazil etc all in same boat. Natural decline in conventional oil production also needs to be replaced 3-5%per year on.

We can always trust the brokers to get it right...

Yes i believe brokers have been publicly saying buy and privately saying sell for some time now.

I emailed PVR yesterday and they confirmed that they are still talking to parties in relation to the Barryroe and Spanish Point assets. It aint over till its over

If the secretary was down beat about the company's outlook on the phone, he would want to be sacked.

Greenline I would question your statement there, I have communicated with Mr Graham on several occasions and he has been consistently neutral and careful not to give away any information that is not already in the public domain...

Where is phoebus and bullboy when you need them!

Its a tax break on production. So they would have ti get broe producing.everything hinges on broe unfortunately.