Providence Resources Forum

I spoke with the company yesterday, they said that if a deal was off the table they would have to issue an RNS. They said negotiations were very much still in progress and that nothing had changed since the last announcement when they said the deal was nearing completion. Completely unable to answer when. Take from that as you will but i think anyone buying at these prices could be set to make an absolute fortune. That being said the trade sizes at current levels are tiny so not really fortune worthy.............................take from that as you may also.

Hello there Shadow. This is now way oversold. However the management are responsable to a large extent and also a cerain amount of bad luck. The Market sentiment will eventually turn. However the management have left us in a position that we have no cash flow and their burn rate considering their unjustifiable salaries amongst other things have left us in a precarious position. Providence will need to cut costs, sell something, reach a FO, raise capital or seek a roll over loan whilst the market turbulance disipates. This will eventually happen as shale likely to be hammered as well as deep sea drilling and other expensive non-conventional oil sources.

How low can we go ?

Creditsights project oil in the MT to remain around $75 with a trough at around $50 possible in 1Q15. They do not see OPEC changing production until this trough is reached, so current prices look like an market overreaction imo

Hello there JR. It is tempting to want to buy at present value and I believe share price will rebound. However if you alreay have a large sum invested I would not risk any more. We still do not know the whole picture and we cnnot be sure about the value of Oil in the near term. Think Providence are waiting it out and obviously this is a buyers Market at present

Spuddy/Godot, know we've spoken and the general consensus is that deal must nearly be concluded, as PVR couldn't be that reckless. As such, the current price must be great value. Are either of you (or anyone reading this) tempted to buy ??? I would love to, but I've been averaging down and now have more exposure than I'm comfortable with (aka "scared").

Spuddy, well done and thanks for the update. Going to make a call myself later.

Hello there to all. Spoke to Providence and was told Negotiations are proceeding. They understand the concerns and are receiving many calls by investors expressing their worry. However the message conveyed is that the situation is frustrating more than worrying. Annual Statement to be released before Christmas

Thanks Godot. Hard to keep positive. No other choice though not going to sell here. Hope we hear sonething soon.

Agree with you Godot, but when deal done will breathe a big sigh of relief and sell asap.