Providence Resources Forum

if the large shareholders own 55 mil. shares and they take up their full entitlrment which is 12.5 mil at 34c(55÷ 4.4) they are now entitled to to purchase 20 times their original shareholding of 55mil. which is 1.1 billion shares add this to the 67.5 mil.shares + 10 mil owned by the retail holders like me and that adds up to 1.177 billion shares could be some dilution?

Presently circa 65m. Approx 55M with Large Investors and 10M with retail. Following Placement 1:1 i.e. 65m New Shares an additional 10M Shares will be available to Large Investors i.e. 65m-55m =10M. Then we have Rights issue 1:4.4 = 14.4 M shares. So If Sequa/Spainda is farminee and has been buying in the market prior to Placement Announcement we could see Sapinda/Sequa (if the farminee) take lets say 15% of the shares in Providence. Expect a deal announcement the week following Rights issue

The remarkable thing about this share is that the price seems to have stabilised, interesting that the sellers dont seem to want to drive it below the placement price............

In 2008 Oil reached maximum of $134 with dollar worth .625 Euros i.e. cost in Euros of 83.75 Euros. Now we have dollar at .91 Euro with Brent at $60.71 i.e. 55.3 Euros. Thus this means that Price of Barrel in Euros is down from 83.75 to 55.33 Euros - a reduction of 28 Euros a barrel. We were told in August by Landsdowne that Barryroe was Profitable at ~30 dollars i.e. production cost in August below $30. Earlier in the year we were told Production cost of $40 a barrel. This would have given a profit of 58 Euros a Barrel. If we can believe Tullow statements that cost of rigs down 50% and labor down anywhere from 30 - 40 % then Barryroe should not have a cost in Excess of $15-20$ a barrel i.e. circa 13.5-19 Euros a barrel. Thus we still have considerable Profit from Barryroe of anywhere between 35 and 40 Euros a barrel.

re Sapinda: agree with atlanticshore. Sapinda chair has long record of bankruptcy and conviction for fraud in Germany. PVR would really be scrapping the barrel supping with these guys.

Read the Article and from Sapinda´s Point of view seems very reasonable. If they have the money for Providence and Barryroe do not see any reason for concern.

Apologies for ignorance but is this an offer for extra shares or rights for free to compensate for dilution or is it purely offer to buy more shares? Perhaps am getting mixed up with rights issue

Thanks lerrab

Mmmmmm if your entitlement is 1000 shares and you take them all up at 34 you can now purchase a multiplication of your original shareholding by 20 at 34 and you have until the 13th of march to do it

your right Mmmmmm l had bought shares at 37 and they were after the due date for this issue goodbody had added on these shares by mistake and thars why the division came out just under 8 and not 4.4 then buy your full entitlement @ 34 and then you can purchase your full shadeholding × 20 @ 34 x sorry about that goodbodys got it wrong with me good luck.