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BARRYROE FARM OUT FORMALISED Dissemination: 20 September 2018 08:10 BST Providence Resources (PVR LN) has announced the formalisation of its farm out agreement for the appraisal of its Barryroe field, offshore Ireland. The deal, which was originally announced in March this year, will see a Chinese consortium, headed by APEC Energy Enterprises finance a comprehensive appraisal drilling campaign in 2019. The farm-in offer originally constituted three firm wells, plus any required sidetracks, however the deal has subsequently improved from Providence’s perspective, with the programme now comprising four firm vertical wells, one horizontal sidetrack and two optional horizontal wells. On top of this, APEC will now pay PVR US$9m upfront and a further US$10.5m ahead of the campaign, to cover any early costs associated with the project. Importantly, in spite of this expanded work programme Providence is not required to relinquish substantially more than originally expected, with APEC still farming into a 50% stake, halving Providence’s original 80% interest. We see today’s news as significant on a number of counts. Although we considered transaction risk low, sign off was required from multiple parties including both the Irish and Chinese governments, and therefore the fact that the agreement is now binding quells any concerns that the transaction would not complete. Secondly, despite industry cost inflation since announcement of the deal, the committed appraisal programme has grown in size – indeed the committed capital investment by APEC has more than doubled on our numbers to c.US$250m (gross) from c.US$100m, assuming that both horizontal well options are exercised. In our opinion, this is a clear demonstration of APEC’s enthusiasm for the project, and its intent to press ahead as quickly as possible. From Providence’s perspective, it now has a fully funded appraisal campaign, worth some US$100m net to PVR’s residual 40% stake, due to commence within the next 9 months. The campaign will determine Barryroe’s commerciality, and could add to the field’s c.350mmbbls of already discovered resource (gross, 2C recoverable). The company released the news alongside interim results, which bear only limited significance. Cash on the balance sheet at the end of June totalled just over €12m, with zero debt – down from €19.5m at the start of the year. Naturally this does not include the benefit of today’s cash injection, which, after accounting for PVR’s carry on Barryroe, leaves the company in rude financial health. Authors: James Midgley, Energy Research Analyst [email protected] +44 (0)20 3167 7273 Tim Hurst-Brown, Energy Research Analyst [email protected] +44 (0)20 3167 7276
get in below radar BZT - about to heat up with Justin blogging on it and Nic chart next target 1p [link]
I wonder if Leon will report before the end of September? If he doesn't he may have answered his question why shareholder value has been crushed.
Shares of Qualcomm (QCOM) have likely topped out in the near-term based on a stock chart showing a major top resistance trend line. Price tagged this line in the last few days after jumping from below $50 to above $75 in just a few months. The chart below showcases this trend line. This is a high reward short trade in the coming days/weeks.
Chart: [link]
Interesting to note that they haven't got to the ENVIA stage yet - estimated for 2020 so VLS still has a head start once they sort out the leak issue once and for all and get on with the rest of their projects. Meanwhile the SP hovers in the doldrums locked in a news vacuum!
I've heard that too many times before. IS A Down over 11%.
The share price is soon going to explode. Patience
T39 EWT started on 4th July so 72 days now. Testing is most likely being directed by the requirements of the 2 majors who will want to be sure of any drop off rates before they commit to invest