Providence Resources - Nothing - Hello there JR absolutely nothing...

Hi Spuddy, agree with you on AFREN and the thin volumes. In addition to what you said on fracking, most fracking in the States has a breakeven point of $80 a barrel, rigs are hired on long term contracts, so producers waiting until end of contract and then decommissioning. As you say Q3/Q4 is when this is expected to wash through the system. Expect price to rebound to $80 per barrel then. Oil companies currently valuing future projects at this mark.

Hello there JR absolutely nothing I would say. Just light sales in thin volumes.
Was reading an interesting article about fracking. Apparently when they say that fracking technology has improved this is correct. However what they are really saying is that they use the same rig to remove the oil from an area that before would require three rigs. Now as we see Rig count in USA is declining already down 15 percent since December. This means that each rig that gets cut removes more production than would have been the case some years ago. With most shale fields operating now at or below breakeven and decline rates of up to 60% in a year we are likely to see a large fall in production in Q3 and Q4 if oil prices stay at these levels.