Providence Resources Forum

Hello there JR. I imagine first of all any Farm in Partner will want to do the appraisal drill before contractually committing to bringing Project into development. Thus once appraisal completed (100m dollars should do this and also allow them to test Jurassic) the Farm in Partner will have option to progress to production or sell its stake to another Operator at that point. I imagine that providence will have a clause in the contract that ensures some sort of staged farm in that either ensures that the chosen Farm in partner must either progress (upon completion of appraisal drilling) to production or sell its stake to a 3rd party that will bring project to production or else hand back a certain percentage of project to providence. Thus valuation of free carry will increase or decrease depending on appraisal results and what happens thereafter. I imagine short Term that we will see Share Price rise to 3-4 Euros. Spanish Point drill if successful could push us back above 6 Euros. If Price of Oil rises again and Appraisal drilling at Barryroe Successful this share could fly again.

Spuddy, what do you reckon the monetary value of the free carry is worth? Thanks JR

Thanks for that Godot. So a decent result at Spanish Point plus a deal signed at Barryroe will help to push up share price and if additional funding required at any stage some shares could be issued at a higher price. Think Providence will get 40m in Cash and end up with 32 % of Barryroe (free carry to production). Landsdowne will get 10m and 8 % to production

Exactly. If PVR cleared the loan tmo then they would have 1m in the bank plus whatever they are due back from the court case. They would then need to find the funds for their share of the SP drill or I suppose forfeit their share of that project. But as they have the funds to pay the drilling and keep going till summer time no need to loose out of SP..

I think the deal was done last summer (pre Exola news) and we're waiting on final signing once Sequa have bond issue wrapped up. Jimmy looks at things from a technical point of view and highlights the uncertainties. From a financial point of view uncertainty equals risk and that is why Barryroe is only worth hundreds of millions now instead of billions.

Hello there Godot/JR
Does the 18m in cash in bank come from the 24million loan of which you say 17m is drawn down i.e. Providence has 17m is cash from the loan plus 1m of its own cash

Still have faith JREwing. Just wanted to put on paper the facts. Jimmy especially is quite negative in every post where possible re survival of the company. I personally can't see a problem. Plenty of money to keep operating.

i think the deal is already done, waiting for the government to approve Sequa as the operator and then it can be announced but thats my opinion ! and what do i know.

Godot, keep the faith, don't fall under the shadow of Shadow's pessimism, I firmly believe deal will be signed start of February.

But surely we will have sold a stake in it by then to Sequa