Providence Resources - Panic - Providence have the cash to...

Providence have the cash to get to June 2016. By then they should have approx. 13m in cash. This would leave them 7m in debt. This can be rolled over and finally belts tightened. Oil markets will have turned by then. Shale will have been damaged sufficiently by then. Saudi-Russia etc will impose thereafter a cub in production. 1% will do the job and will accommodate for Iranian Oil. The real issue is not about over supply it is about market share. The smaller shale companies will go to the wall and the bigger Oil companies will take their assets and ensure that over production is curbed as it is in no ones interest. Just remember nothing has changed at Barryroe. In fact Providence has just added potential reserves and Spanish Point is a discovery. It is always depressing to see share price fall. However it is completely wrong to believe that the big institutions are bailing out. They are not. All holding their shares. Barryroe will be farmed out and things will turn. It would be nice in the meantime to see TOR and the board act correctly and cut their salaries and reduce non-essential expenses. Kinsale Energy are crazy not to be looking at Barryroe - for its gas alone. Landsdowne will wait until year end for either a Farm out on Barryroe or will sell its stake. Landsdowne is totally under valued as well and it is just negative sentiment on Middleton which has contributed. PETRONAS may buy Landsdowne now and do a deal with Providence on Barryroe. Very little volume in Providence. Market makers just scooping up shares on negative sentiment. They drop the bid and people panic. So my advice is hold tight. The Oil Markets will turn. Also the EIA has more or less sated this fact albeit producing some very dubious figures which completely overstate the over supply in World Oil Markets. Oil is cyclical and there will be a spike ahead. The idea of shale efficiencies is nonsense. The shale companies with oil at $100 generated 250bn in Junk bond debt. How will they manage at $50. Hedges that they bough to guarantee a fair price for future production are almost gone. The Saudis are shorting paper oil markets to ensure no more hedging available. In October banks will reassess credit lines to the shale players. Deep sea/Canadian tar/Brazil etc all in same boat. Natural decline in conventional oil production also needs to be replaced 3-5%per year on.