Providence Resources

JOHNPT · 17-01-2012 06:51PM #1

Providence are due to release the results of its Barryroe Drill off the coast of Ireland within the next week - if this proves successful it will be a game changer not only for the company but for the Irish economy - bye bye IMF, hello Exxon & Chevron.

Comordha · 18-01-2012 10:49AM

Sounds like you are getting a little carried away with yourself and Providence. The company has a poor record and nothing viable has ever been found off the Irish coast in oil terms. Even if they do make a find, commerciability depends on oil prices remaining high, probably above $100-120 a barrel. With a weakening Chinese economy and the Eurozone heading for recession this is not guaranteed.

Regarding the IMF, one or two average sized oil finds with the profits being extracted by foreign companies is not going to save us from the €200 + billion we owe. We need a miracle.

JOHNPT · 18-01-2012 02:46PM

Commerciability depends on oil prices at only $70 a barrel. On the contrary I believe I am understating the importance of these drill results to both the company and the Irish economy. Technology has moved forward in the area of oil exploration - less risk and reduced costs.
The next two weeks will decide - if it hits a buster then no Exxon will be arriving to drill off the west coast, however if it hits oil (which I believe it will) - the companies share price will rocket, and the large exploration companies will arrive in force.

Comordha - in two weeks I will post an update - at that time one of us will be left with egg on their face ............

yobr · 18-01-2012 03:49PM

JOHNPT wrote: »

at that time one of us will be left with egg on their face ............

It doesn't always have to be that way...

There is a lot of validity to both yours and Comordha's posts. However, the reality is that with the one or two exceptions, (Corrib gas) Ireland's seas have not offered up hugely commercial oil reserves. While I wish PVR all the best and hope they hit oil, I'm not sure if it will lead to a sudden influx of majors seeking rich pickings.

Grecco · 18-01-2012 11:32PM

Oh my stomach churns with the thought of them
yuuk :mad:

Comordha · 02-02-2012 02:40PM

So how is that Barryroe Drill going for you then?

stevedublin · 02-02-2012 09:43PM

Comordha wrote: »

So how is that Barryroe Drill going for you then?

They haven't released results of the drill yet, a few more weeks I guess.

JOHNPT · 03-02-2012 12:12PM

Results next week - if their positive it will be a game changer.

The Pontiac · 03-02-2012 10:05PM

JOHNPT wrote: »

Results next week - if their positive it will be a game changer.

And if they aren't?

JOHNPT · 03-02-2012 11:58PM

If not its game over - but I know they will strike oil - and I know that when they do Exxon will announce within a month they are going to drill Dunquin off the west coast in partnership with Providence. Watch this space

JOHNPT · 09-02-2012 09:47AM

Its game on - RNS released this morning - 'presence of hydrocarbons'. This is only the beginning for Providence - completion of drilling in two weeks - and it will be proved commercial. Then before the end of March both Dunquin and Spanish Point drilling announcements will be made. Share price of Providence this morning is just over 3euro on the ISEQ - on 31st March I predict between 9 and 12 euro. Watch this space.

ted1 · 09-02-2012 09:50AM

Tax payer will get nothing. Profit is on earnings, would good accounting that will be minimal as they'll write off all their profits againest exploration and other costs.

JOHNPT · 09-02-2012 01:32PM

The above comment is typical of the misinformed rubbish that is sprouted out in the media - of course they will pay tax on profits after all expenses. Its the same with every other company in Ireland - expenses are deducted first. Every multinational google facebook Intel etc which starts up in Ireland can write off initial expenses before they pay corporation tax. Do you think Providence are drilling for the fun of it. Typical Irish mentality - instead of cheering the good news - try to come up with some negatives.

Smcgie · 09-02-2012 08:06PM

JOHNPT wrote: »

The above comment is typical of the misinformed rubbish that is sprouted out in the media - of course they will pay tax on profits after all expenses. Its the same with every other company in Ireland - expenses are deducted first. Every multinational google facebook Intel etc which starts up in Ireland can write off initial expenses before they pay corporation tax. Do you think Providence are drilling for the fun of it. Typical Irish mentality - instead of cheering the good news - try to come up with some negatives.

I think you need to dig a little deeper into other countries policies on the extraction of oil and gas and how some take a 40-50% tax at source regardless of profit and loss.

He might be moaning like a typical paddy - but he's right

JOHNPT · 09-02-2012 08:58PM

Which country takes 40% tax at source regardless of profit????? - More misinformation.

The Pontiac · 09-02-2012 09:27PM

JOHNPT wrote: »

Which country takes 40% tax at source regardless of profit????? - More misinformation.

Most countries do. Norway takes 78% of profits. Russia over 65%.

Ireland has a low taxation policy because it's not a prolific oil producer. Historically, about one well in 25 drilled in Ireland is commercial (one in two in Angola for example). So this means huge costs and risks taken. The North Sea has a 1 in 7 success rate with proven reserves and infrastructure in place.

Steveirl2010 · 09-02-2012 11:03PM

Hi John,

I bought Providence Resources shares also, i bought back in 2006 at 6 cents

In May 2010 wasnt there a capital reorg within the company and was annouced at the EGM on the 26th May

A load of my shares were sold called Consolidated shares by Providence..
therefore a lot of people did lose out....but still this is good news

I think i have about 140 shares left @ 10cent

after spending 1000 euro on the shares back in 06

might take a while before i get my 1k back.

Steve

JOHNPT · 09-02-2012 11:24PM

Ollie you said in your original post they take 40% at source irrespective of profit/loss - this is incorrect - they only take 40% of net profit. Also Norway refund the oil company approx 75% of the cost of drilling if they drill a dry well - Ireland has had approx 150 wells drilled off the coast with only 3 commercial discoveries - so we should be grateful we didnt implement Norways tax system. Facts are constantly twisted - we need a low tax base to make it attractive enough for these companies to drill off the coast as the chances of finding oil are so low.

Steveirl2010 it may not take as long as you imagine - drill should be complete within 2 weeks - it will be commercial.

Steveirl2010 · 10-02-2012 05:17PM

JOHNPT are you a shareholder?

Are you a company exec?

ted1 · 10-02-2012 09:19PM

Google, facebook and the other FDI companies don't Rob the country of it's natural resources. You can't compare the two.

The Pontiac · 10-02-2012 09:42PM

ted1 wrote: »

Google, facebook and the other FDI companies don't Rob the country of it's natural resources. You can't compare the two.

Do you have any idea the risks associated with oil exploration in Ireland? It costs €70m to drill one well off the west coast. Very harsh environment and a low chance of success. Then if they do strike, it may take years in this country to commercialise it. Gas in The Corrib field, where gas was first discovered in 1996, has still yet to flow.

The last round of bid offers had none of the majors looking for licences. The 40% rate set by the utterly clueless Green Party is too high IMO. 30% is about right.

JOHNPT · 10-02-2012 10:20PM

Good points Ollie. And no I am not an executive just an ordinary self employed Joe Soap who is sick of listening to same old rubbish about oil exploration and robbing our resources. Its a huge cost and risk to drill off Ireland - its completely different to Norway or other countries and in my opinion most of the people who are objecting are doing so because they have nothing better to do. We should be encouraging oil exploration - it may help get us out of this mess we are in.

ravima · 10-02-2012 10:22PM

Look at the bright side. if they find a large pool of oil, then other companies might be interested in drilling more wells and at that stage we can change the taxation policy. If companies are satisfied with risk/reward, then they will not have a problem with paying tax.

its not how big the worm is, but how you wiggle it!

Gandalph · 13-02-2012 02:21AM

Sounds interesting, just looked at the report on their site there. Hydrocarbon is linked heavily with oil finds then? Forgive me as I have no idea and am new to this!

Thargor · 13-02-2012 06:54PM

Gandalph wrote: »

Sounds interesting, just looked at the report on their site there. Hydrocarbon is linked heavily with oil finds then? Forgive me as I have no idea and am new to this!

:eek:

http://en.wikipedia.org/wiki/Hydrocarbon

You have some research to do before you invest any money in this sector I think! Not that I can talk.

JOHNPT · 14-02-2012 12:51AM

RNS released today - Dunquin due to be drilled in 2nd Quarter of 2013 - Providences partners are Exxon ENI and Repsol - all oil giants - it shows the size of this prospect - far bigger than the Corrib field. As I said last week - watch this space - alot news is going to emerge within the next month.

Smcgie · 14-02-2012 02:45PM

JOHNPT wrote: »

We need a low tax base to make it attractive enough for these companies to drill off the coast

True, but we as a state must profit from it also. Regardless of jobs, cost of drilling etc, they're our resources.

turbobaby · 14-02-2012 03:05PM

Smcgie wrote: »

True, but we as a state must profit from it also. Regardless of jobs, cost of drilling etc, they're our resources.

I have no doubt in my mind that government will do what they do best... F*** it up.

Best of luck to all Providence shareholders. Interesting few weeks ahead by the sounds of things.

JOHNPT · 14-02-2012 03:55PM

Smcgie - Thats true they are our resources - however they are not much use under the sea - that's why we need to attract exploration companies to drill - its a risky business drilling offshore so terms have to be attractive enough to encourage investment. If the company drills a dry well (approx 147 dry wells drilled offshore Ireland) then the company pays for this not the Irish Government - if they hit oil (only 3 wells offshore Ireland) then the company has to pay tax on its profits. Seems very fair and logical to me.

Steveirl2010 · 16-02-2012 03:51PM

JOHNPT wrote: »

RNS released today - Dunquin due to be drilled in 2nd Quarter of 2013 - Providences partners are Exxon ENI and Repsol - all oil giants - it shows the size of this prospect - far bigger than the Corrib field. As I said last week - watch this space - alot news is going to emerge within the next month.

Watch thisd space as in 2013 now? lol so much for in 3-4 weeks time these shares will hit €9 was your prediction. That was about 4 weeks ago wasnt it?

JOHNPT · 16-02-2012 06:11PM

When Barryroe is deemed commercial they will rise very fast - drill was delayed by 2 weeks due to problem with rig however its all fine now - target depth is expected within a few days then approx 10 days to do a flow test. Dunquin is just the beginning - the market is waiting for news from Barryroe

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