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.
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 .
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.
Thanks for that Callasjunkie. Very interesting really. He is quiet the man really. I still hope that he saves the day for us.
If they issue forty million new shares at twenty five pence each that would be ten million pounds. That should tie them over for a time being, and hopefully reassure the market, and maybe things will begin to settle down over the next few months.
It is really. Anyway the attractive thing about this share if there is such a thing, is the small number of shares in issue.
The Irish Examiner Newspaper is talking about a share placement next week. That would be better than a rights issue I think myself. No matter what number they settle on for a rights issue, I have a feeling that the share price will just go below it straight away. [link]
Will there be a rights issue?