Providence Resources - Re: PVR Stream Log - Spuddy, as you know I’ve...

Spuddy, as you know I’ve had a jaundiced view of Sequa since the phantom deal was mooted. It was opportunist on Sequa’s part, probably a punt on a rising oil price followed by an offload of their share.....and was rather cynical of TOR probably to convince the faithful that something was happening. One can never say never, but I’d be amazed if Sequa got involved now. They have proved to be a total disaster area. Under the old management, they got taken to the cleaners by Bolz LLP in Khazakhstan. Under the new Sequa management, they pulled out of their deal with Wintershall, costing them, if I recall correctly, $31m in a lost deposit. Their takeover of Tellus Petroleum has proven to be another disaster, as their investment into Total’s Gina Krog was called off, costing this time, a 50m NOK (about $6m) lost deposit. Finally their 4th sally into prospective production, a minor share in an OMV field was abandoned. All this when crude prices were staging a turnaround. Their bonds have fallen 32% on the Frankfurt exchange. I reckon the deals were pulled because a further bond issue would have failed. Against this backdrop, financing a PVR well would be quite miraculous. If you read their 2015 Annual Report, they are on life support from parent Sapinda. In 2 very expensive years and 4 projects, they have zilch to show for it and I don’t think Lars will want to continue to pay for two expensive managements, Sequa and Tellus. Reading between the lines of the Going Concern note, Sapinda could pull the plug at any moment.