Providence Resources - Re: Transocean - Spuddy - If the case...

Live Discuss Polls Ratings
View
Page
15:44 13/01/2015

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.

Page