Providence Resources - Transocean - Hello there JR. can these...

Spuddy - If the case had been lost, PVR would have had to hand over cash to Transocean. The impact on the accounts would have been, reduce accrual liability and increase the creditor (Transocean) liability. Cash would have then been required to pay down Transocean as a creditor and clear the liability. In fairness to PVR management, taking the legal route proved to be very much to the benefit of shareholders. Without looking at the accounts, I'm assuming PVR's retained reserves are largely exploration losses. These can be used for offsetting tax liabilities when Barryroe enters production.

Hello there JR. can these retained reserves be used for anything. From what I understand 19m is the amount questioned. Was this cash ever handed over to Transocean ?? If this amount was never handed over to transocean and now does not have to be handed over are we 19m better off. Or was it a case that we would have had to find 19m if the case against Transocean had been lost