Providence Resources - Questions for Providence and the Answers - From: Michael Graham [mailto:[email protected]] Sent:...

From: Michael Graham [mailto:[email protected]]
Sent: Thursday, February 12, 2015 11 PM
To:
Subject: FW: Additional Questions regarding Barryroe


Thank you for your e mail.

I understand shareholders disappointment at the current fall in the share price. As has been published the Company does have a short term loan facility in place. The Board are acutely aware of the Company's financing needs and are actively considering a number of options available to us, including the benefits of the proposed Barryroe farm in. In relation to the Barryroe farm-out, I am precluded from commenting on any of the questions you raise. In accordance with our ongoing Stock Exchange obligations, we will continue to provide the market with updates as and if when appropriate.

Michael Graham
Secretary

From:
Sent: 12 February 2015 11:15
To: Michael Graham; Providence Resources
Subject: Additional Questions regarding Barryroe

Hello there Michael

Another terrible day in the Markets as you are well aware and some very very upset shareholders myself included.

I understand that there are limits to what can be disclosed but given that we are all losing our shirts in the process in what appears on the face of things to be a very bad situation I have some more questions that I would like to ask.

Providence have a loan which they are using to run the company, pay salaries etc etc. In June this loan has to be paid back. Providence has told us that a commercial agreement on Barryroe has been reached conditional on funding.

With Providence facing a June payback date for its 20 million loan facility has this been taken into account when making this commercial agreement on Barryroe ?

Has Providence included a penalty clause in their commercial agreement with its counterparty i.e will the counterparty to the commercial deal be liable for a cash payment to Providence in the event of failure to raise funding ?.

If there is no penalty clause in this commercial agreement then it would appear that it is not an agreement but an option by the counterparty to Farm in or not to Barryroe at a timing and under the conditions that are most advantageous to itself.

Why would the counterparty be in any rush to provide funding knowing the financal position of Providence and its June date for loan repayment ?

Has Providence placed a cutoff date on the commercial agreement i.e does the counterparty have to produce funding by a certain date or is its option open ended ?

If no deal is done on Barryroe is there a plan B arranged to allow us to meet funding requirements; pay salaries, pay loans, daily running costs, drilling plans etc etc. ?


The share price at the moment is a clear indication of the impression correct or not that the market has of Providence´s position. I myself have been investing in Providence (just buying since 2005). I have never sold a share in this company believing that we would have a good future but am anxious at present