The one good thing about Providence compared to Circle Oil is that their debt is a lot smaller and there is already some agreement to extent the debt. I think that is the key, because if we can hold on for a while hopefully things will turn around.
I suppose it is a interesting story for the Newspaper, and one that would increase sales, but I would imagine that billions of barrels of oil have being found to exist offshore Ireland would be a bigger story.
The fire is doubling in size, but thankfully it is moving away from populated areas. I think it goes to show how much the market is aware of the fine balance between supply and demand.
He is a independent, but is a former member of the Fine Gael Party, and had several positions in shadow cabinets. So he should be sensible.
I see the the fact that it has being two weeks since PVR suspended shares as reason to believe that there are ongoing talks with lenders and advisers, which is buying us time to come sort of deal. It may be a equity raise, but could also be a placement with a new investor, or talks to sell a share in Barryroe. Seven million dollars is a lot of money when you do not have it, but not an impossible sum to come up with considering the assets that are on view. It is interesting to note that if the oil price were one hundred dollars a barrel, people would be all over this company now; which would be mad in one way, as the price might be lower when the fields are being drilled. If anything, this is the right time to come into this company, as you have a raising oil price which will be maintained; as production will take years to get back. The case for investing by a big investor is overwhelming. Also worth noting that money on the balance sheet of big companies is always invested.
You are completely right, someone will make a fortune on Providence. When the reissue the shares, that will go a long in telling us if we will be involved in any future profits.
At least the improving oil price creates a good back drop for the ongoing talks.
The Irish Times article is interesting, but I would think that drilling in the past fifty years has being done blindfolded. Today it is done with X ray glasses provided by Schlumberger
What may help us is that the top nine investors, all new, apart from Blackrock, have put in 25 million euro at the last fundraiser. Hopefully they will want to protect that investment, and perhaps in return for more of the share capital they will invest again. Of course the way these big company's work, they could maybe write there losses in Providence against tax.
I think we should be OK, and survive this major setback. Seven million dollars is a lot of money when you do not have it, but there is a good few big investors here, so they should follow the money and keep the show on the road. The upside would be that this setback will hurry on a farmout of Barryroe, and the worst downside is that the shares will never be traded again. I do not think that is going to happen, and I imagine the longer the shares are suspended, ( which would be hard on the nerves) the better chance that a good deal can be done.