Providence Resources

You'd wanna be very cock sure about yourself and what your going to do to accept this offer as CEO

Irish oil and gas explorer Providence Resources has offered its new CEO, Alan Linn, the option of buying shares in the group at a price of four pence each, subject to shareholder approval.

https://m.independent.ie/business/irish/providence-offers-new-ceo-share-options-38859453.html

A great opportunity first thing this morning to sell and take a profit if you were one of the very lucky ones who could take a profit or to cut your losses which would probably be the situation for most if there are any holders left. Never had an interest myself, just watching from the side. Good luck with it.

Nicely moving now and quite a good consortium:

Schlumberger

Aker Solutions

AGR

Maersk

Keppel

Aibel


Ireland may finally be on track for oil. Of course though it's when we've started focusing on green policies!

9 million loss for the year so far mainly due to financing


https://amp.rte.ie/amp/1168381/

Farmout progressing on time. Massively undervalued asset in my opinion, all that awaits is the ownership percentage after agreement.

Providence Resources are to present for the first time at the proactive investors conference next Thursday.

We may have news before then.

gilberto_eire wrote: »

Hi guys, I'm looking to buy these and buy these shares only.

Is there an etrading platform I can do this on?

I'm not too bothered about the hassle of brokers etc.

I just want an easy way to buy these specific shares. Saw they weren't on Etoro.

Not sure Gilberto, I use Degiro personally but to set that up you may miss the farmout news if it is coming this week.

I'd set it up anyway as it might be your only option

Farmout agreement to be finalised this week.


https://www.google.com/amp/s/amp.independent.ie/business/irish/providence-to-agree-barryroe-deal-this-week-39661669.html

Thoughts re the rumoured injunctions in the pipeline? I can't see this project going ahead tbh.

littlevillage wrote: »

Whats your feeling on how the market will react on news of an agreement?


Currently at 8c on ISEQ. After falling from 10c earlier last week.

Does that maybe tell us something?

For example, do you feel that maybe a successful agreement might already be priced in at 8c....and if there is a further delay....the SP will flop back to 5c or worse?

I'm not one for speculating crazily on price to be honest, I don't want to get ahead of myself but I place a much higher value on the expected retention of 50% of barryroe post farmout then the current share price and market cap. I think the market will always be wary of providence given its history but also with the current change towards greener energy and indeed the lower oil prices.

If I had to give a figure, I'd say 15p but I'm by no means experienced in this sector. I think Oil is a promising investment in the medium term, it's not going away anytime soon.

LawBoy2018 wrote: »

No the Greens wouldn't bring the injunction, sher they'll be the ones giving the project approval. The FIE activists have said that they will be bringing an injunction if it goes ahead, which would likely succeed imo after the Supreme Court case they won a few months ago.

I don't disagree with the project, but how does Ireland benefit in any way? Oil prices have never been better + Ireland doesn't retain any of the oil extracted from Barryroe. The only benefit the State will actually see from the project is the corporation tax taking, which will be written down from the losses incurred by the company for the last few years + capital allowances.

I think you need to take a step back and look at the bigger picture. If this project is stalled for much longer, the share price will tank imo.

You also need to take into account the Paris Agreement. That would also be grounds to have the project scrapped. The optics are terrible and the Gov likely won't want to give the opposition parties more ammo than they currently have. Why would The Greens allow the project to progress without an environmental impact report? Sher it would need one of those before planning is granted afaik. Isn't that what killed Shannon LNG?

Thoughts?

I haven't seen FIE activists say they will take a case against Providence? Where are you seeing this? I don't doubt they might but has there any word on this.

I'm not a law expert, I don't know what case they would have in the supreme court against Providence so I can't comment on that.

I'm also well aware of the risk with this project and my investment was on the catalyst of a successful farmout really. I'm up a nice bit already, 65% + so for it to spike on farmout I'll happily reassess and jump out rather than burden the risk.

The project can't go ahead without the environmental report, I said that. It will take 2 years. Shannon LNG is a different proposition and not fully abandoned as far as I know.

littlevillage wrote: »

Delay in signing the deal, SP back to 7c. Wonder is this an opportunity to snap up a few shares? or will they drift even lower?

Before jumping into anything involving this company & this project you should study the history of both. Its share price has been an almost constant draining away of shareholders value. The shares have been diluted so many times, along with numerous false dawn and delays. Each delay results in further expenses in keeping a company with no production income running.

The risks in this company are very much on the downside for a shareholder.

Also the world still has many areas where exploration & extraction of oil is a much simpler & profitable experience.

Just my opinion following close to 20 years of watching a small investment dwindle away while this company went around in circles. Luckily at the same time I invested in another Irish oil stock (Dragon Oil) that gave a much more pleasant experience.

chrisd2019 wrote: »

Before jumping into anything involving this company & this project you should study the history of both. Its share price has been an almost constant draining away of shareholders value. The shares have been diluted so many times, along with numerous false dawn and delays. Each delay results in further expenses in keeping a company with no production income running.

The risks in this company are very much on the downside for a shareholder.

Also the world still has many areas where exploration & extraction of oil is a much simpler & profitable experience.

Just my opinion following close to 20 years of watching a small investment dwindle away while this company went around in circles. Luckily at the same time I invested in another Irish oil stock (Dragon Oil) that gave a much more pleasant experience.

This is a very good post!

This stock is a real minefield. A real gamble.

chrisd2019 wrote: »

Before jumping into anything involving this company & this project you should study the history of both. Its share price has been an almost constant draining away of shareholders value. The shares have been diluted so many times, along with numerous false dawn and delays. Each delay results in further expenses in keeping a company with no production income running.

The risks in this company are very much on the downside for a shareholder.

Also the world still has many areas where exploration & extraction of oil is a much simpler & profitable experience.

Just my opinion following close to 20 years of watching a small investment dwindle away while this company went around in circles. Luckily at the same time I invested in another Irish oil stock (Dragon Oil) that gave a much more pleasant experience.

I think there are more factors to this stock currently than basing your valuation off past performances. Alan Linn, a vastly experienced oil industry player is the head of Providence now, it's no longer Tony O'Reilly JR, and management is key to any business. This alone is enough to completely ignore the historical failures. There are no dodgy dealings with Chinese here.

What's on the plate currently is a fully funded farmout programme with retention of up to 50% for Providence. Current known extractable barrels number 346 million and that's not even looking at the expansion of the field, further deep drilling, as well as the natural gas present (which is seeing a nice price increase over the last year or so ).

The consortium is headed by SpotOn Energy - granted this is an unknown entity for the most part and some will point to dormant company filings in the UK as a glaring danger - however further research shows that SpotOn is not nearly as dodgy as Apec. It's actually quite easy to research the current directors and realise that the key to their plan is the Norwegian Export Credit. They've assembled a consortium which includes Schlumberger which is somewhat important given that the current director of SpotOn is a former employee for 12 years.

There are some other factors here I could go into particularly around cashflow from initial activities but I won't. I wouldn't be surprised to see the farmout completed by next week and for a substantial increase in the current share price. It's up to oil prices as well as the green energy lobby groups to not mess this up from here on imo.

LawBoy2018 wrote: »

What are you basing that on though? Pure optimism? I have been following this company for years now I have finally come to the conclusion that they're an absolute train wreck. This project is as dead as a dodo and anyone who thinks otherwise is naive, imo! One of the riskiest investments out there atm.

I'm not so sure about that. Tony O'Reilly was a massive negative factor for Providence, that's no longer the case.

Proper management, a different approach to the farmout, and the last chance to make a profit from oil before the world switches to carbon neutral by 2060 or whenever