Providence Resources - PVR Stream Log

I liked Godots synopsis. To pin point an exact value at this stage is impossible. Company valuation is a subjective area - comes down an agreed starting metric followed by negotiation - only difference for us as listed shareholders is the negotiation is done via the bid/offer acceptances and rejections

To give you an idea of possible future value. If there was a profit of 5 dollars a barrel. 20,000 Barrels a day * 365 days = 36.5m a year. If the cost of capital was 15% then the value of this amount of profit every year for 20 years would be 3,739m. Divide by 1.2 to bring to euro= 3,115m.. If PVR have a 20% share of this then that would be 623m. or 9.59 a share.

Exactly. If PVR cleared the loan tmo then they would have 1m in the bank plus whatever they are due back from the court case. They would then need to find the funds for their share of the SP drill or I suppose forfeit their share of that project. But as they have the funds to pay the drilling and keep going till summer time no need to loose out of SP..

I think the deal was done last summer (pre Exola news) and we're waiting on final signing once Sequa have bond issue wrapped up. Jimmy looks at things from a technical point of view and highlights the uncertainties. From a financial point of view uncertainty equals risk and that is why Barryroe is only worth hundreds of millions now instead of billions.

Still have faith JREwing. Just wanted to put on paper the facts. Jimmy especially is quite negative in every post where possible re survival of the company. I personally can't see a problem. Plenty of money to keep operating.

i think the deal is already done, waiting for the government to approve Sequa as the operator and then it can be announced but thats my opinion ! and what do i know.

Godot, keep the faith, don't fall under the shadow of Shadow's pessimism, I firmly believe deal will be signed start of February.

But surely we will have sold a stake in it by then to Sequa

Just reviewed the last full set of accounts and the 6 month update. Spanish Point drill commitment is 16m euro. The admin and wages cash burn is only 2.2m a year. And some of this is not cash as it is share based payments. So 16m plus 2m = 18m. At the last update there was just over 18m in the bank. Also we have the court case legal fees etc to come back. So there is funds to play through until June when the loan is due. This is a 24m credit facility with 17m drawn down. So were good on funds till June and then surely they can extend such a small loan or get finance elsewhere based on the Barryroe asset.

Thanks Godot !!!