Providence Resources - PVR Stream Log

I posted this before. It is from the Phoenix magazine. Worth noting what they say at the end of the article. It has added meaning after yesterdays announcement. Something to cheer ourselves up with Tony O’Reilly’s Providence Resources group too has been unfortunate in that the failure of Exxon in its $200m drill in the deep sea Sub Porcupine Basin – in which Providence has 16% carried interest – infl uenced investment sentiment unduly. It could be, however, that the upcoming drilling at Spanish Point early next year will change this and bring some real excitement back into the Irish offshore sector. This well will be drilled by Cairn Energy into a fi eld which has already been drilled and with the advantage of modern 3D seismic surveys, the risk factor is far lower. This increases the probability of success in proving up the identifi ed 200 million barrels of recoverable oil in this prospect. Besides this, Providence is sitting on an 80% stake in the giant Barryroe one billion barrel oil discovery, which was proven up 18 months ago. This has yet to attract a development partner and the recent drop in oil prices has not helped. Nevertheless, the prospect is a really big one and will one day deliver huge returns. The only question is who will be cashing in when this happens. Providence’s 20% partner in Barryroe, Steve Boldy’s Lansdowne Oil & Gas, has likewise suffered badly from the ongoing delays in fi nding a big development partner for Barryroe, but as Barryroe is potentially worth billions, for those who can hold on here there will eventually be huge returns, giving both Lansdowne and Providence serious upside potential.

i hope we can look forward to a more stable share price now. until news of deals comes. hopefully 25p is the floor. so weeks or a month now sounds like a deal in April with only two days to go this month. hopefully it all works out and for those that didn't sell it doesn't matter what the price is today as long as it recovers again.

This is a winner for the big investors, as they can get shares at twenty five pence. If they tried to buy millions of shares on the market, they would have to pay so much more. Now tens of millions placed on their lap at twenty five pence. Hopefully the farm out will come in the next few weeks or month as stated by Tony. Will be interesting to see. No point selling now, might as well be hung for a sheep as a lamb. That is a old phrase I heard somewhere, not sure exactly what it means, but it seems to suit this situation .

Think its very interesting that the institutions have over subscribed for the shares. Wouldn't have thought they would throw good money after bad. Also have never heard him use weeks or a month as a timeline before. So think this must be the deadline for deal

Watch this space - TOR Senior is going to be a major Shareholder again with shares that are not pledged to any institution - WHAT A SCAM

Salaries etc to keep the place running are closer to 2 mil not 7. It is not very expensive to sit on the Barryroe prospect until someone pays for it.

Think its cover against Sequa not raising required funds. If thats the case then its the prudent thing for them to do as a company. Not great for small shareholders though if it happens. Hopefully sequa deal goes through and issue doesn't happen

Will be interesting to see the list of new major shareholders once the shares are issued. Either way the ordinary shareholder will be a much smaller part of the company going forward.

Since we can't raise the funds until after the egm at the end of March, doesn't that mean that if we don't farmout b,roe by then we will probably have another fund raise within a couple of months of each other to pay for sp pt.

As far as I can make out this placing is useless other than to cover the loan facility. It is not enough to fund spanish point drilling etc. So the only thing it does is provide cover for the loan. The reason the placing is a month away I would expect is that it is a few days after Sequa have to put up or walk away. If they walk away then they have cover for the loan and can survive until another bid comes in or Sequa get the cash in which case they can cancel the shares as will have cash from the deal.