Providence Resources Forum

If you believe Barryroe is worthless you should never have invested in Providence. You should sell your shares and go and invest elsewhere. Sell them at 10pence. Good for something worth nothing. However I believe alot of people are short selling and looking for cheap shares. We will see who is correct. I believe management have made some bad decisions and market has been terrible given Oil War at present but I believe Providence have some real jewels.

Here are what I think will be the Funding Options in order of most to least likely
1: Barryroe FO with up front Cash Payment
2: Convertible Loan eg 40m one year either paid back at end of year or converted to shares at that time.
3: Placing between a few large investors at price higher than present unrepresentative low Share Price eg 150 pence 30 million shares
4: Rights issue

Do not see the major shareholders agreeing to a rights issue at 25pence. This would be shooting themselves in the foot and automatically valuing all their shares at 25p. It is obvious that just because a small percentage of shares are traded at 25 pence it does not mean all shares are worth 25 pence. I could pay 20 euros for a share on Monday Morning. Would that be the true value if the share !!!!!

Only if Barryroe FO closure will funding be needed. As discussed with fellow bloggers yesterday think convertible loan more likely than rights issue. I would go for a 40 m Euro loan convertible into shares in Providence if not paid back in one year. With this you can pay for one drill at SP. If SP successful share price rises and you can opt to farm down or not for second drill on SP. If Barryroe deal closed by then more cash will be on hand

64 million now 104 after issue sell now then

If they issue forty million new shares at twenty five pence each that would be ten million pounds. That should tie them over for a time being, and hopefully reassure the market, and maybe things will begin to settle down over the next few months.

It is really. Anyway the attractive thing about this share if there is such a thing, is the small number of shares in issue.

share price too low for rts issue

The Irish Examiner Newspaper is talking about a share placement next week. That would be better than a rights issue I think myself. No matter what number they settle on for a rights issue, I have a feeling that the share price will just go below it straight away. [link]

Cheers spuddy. Share your sentiments re farm out, nothing has changed other than progress. We know the company doesn't have loads of cash so the funding discussions could just be a proactive move in advance of the melody facility closing in June, possibly to keep the company operational should the farm out not close by then. Think I would prefer another short term loan facility as opposed to a rights issue or a senior debt issue, time will tell the course of action I guess

Think it was misread. Believe Farm Out still on course. Good News. Providence cannot lie in public and this is closely scrutinized. It maybe that a short term bridging loan required whilst farm out deal is closed. This will come good yet. It amazes me how alot of very inportant newspspers are preocupied with Providence. Is Providence really that inportant to them or is there an agenda to damage Providence. Can think of a few candidates