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EXCLUSIVE: Alastair Smith, Avacta Group CEO gives an Operational Update


Providence Res. Share Chat (PVR)



Share Price: 12.90Bid: 12.75Ask: 13.00Change: 0.00 (0.00%)No Movement on Providence Res.
Spread: 0.25Spread as %: 1.96%Open: 12.00High: 13.10Low: 12.90Yesterday’s Close: 12.90


Share Discussion for Providence Res.


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patrickd369
Posts: 4,085
Opinion:No Opinion
Price:12.90
RE: ALIGN TAKE
Today 14:05
Offshore Ireland......not Offshore Island

Rather amateurish mistake in Aligns title ??
 
patrickd369
Posts: 4,085
Opinion:No Opinion
Price:12.90
RE: ALIGN TAKE
Today 12:55
I’ll be buying more next week, that’s for sure !!
anovas
Posts: 77
Opinion:Strong Buy
Price:12.90
MIRABAUD ARE POSITIVE
Today 11:57
BARRYROE FARM OUT FORMALISED
Dissemination: 20 September 2018 08:10 BST

Providence Resources (PVR LN) has announced the formalisation of its farm out agreement for the appraisal of its Barryroe field, offshore Ireland. The deal, which was originally announced in March this year, will see a Chinese consortium, headed by APEC Energy Enterprises finance a comprehensive appraisal drilling campaign in 2019. The farm-in offer originally constituted three firm wells, plus any required sidetracks, however the deal has subsequently improved from Providence’s perspective, with the programme now comprising four firm vertical wells, one horizontal sidetrack and two optional horizontal wells. On top of this, APEC will now pay PVR US$9m upfront and a further US$10.5m ahead of the campaign, to cover any early costs associated with the project. Importantly, in spite of this expanded work programme Providence is not required to relinquish substantially more than originally expected, with APEC still farming into a 50% stake, halving Providence’s original 80% interest.

We see today’s news as significant on a number of counts. Although we considered transaction risk low, sign off was required from multiple parties including both the Irish and Chinese governments, and therefore the fact that the agreement is now binding quells any concerns that the transaction would not complete. Secondly, despite industry cost inflation since announcement of the deal, the committed appraisal programme has grown in size – indeed the committed capital investment by APEC has more than doubled on our numbers to c.US$250m (gross) from c.US$100m, assuming that both horizontal well options are exercised. In our opinion, this is a clear demonstration of APEC’s enthusiasm for the project, and its intent to press ahead as quickly as possible. From Providence’s perspective, it now has a fully funded appraisal campaign, worth some US$100m net to PVR’s residual 40% stake, due to commence within the next 9 months. The campaign will determine Barryroe’s commerciality, and could add to the field’s c.350mmbbls of already discovered resource (gross, 2C recoverable).

The company released the news alongside interim results, which bear only limited significance. Cash on the balance sheet at the end of June totalled just over €12m, with zero debt – down from €19.5m at the start of the year. Naturally this does not include the benefit of today’s cash injection, which, after accounting for PVR’s carry on Barryroe, leaves the company in rude financial health.

Authors:
James Midgley, Energy Research Analyst
James.midgley@mirabaud.co.uk
+44 (0)20 3167 7273
Tim Hurst-Brown, Energy Research Analyst
Tim.Hurst.Brown@mirabaud.co.uk
+44 (0)20 3167 7276
chef136
Posts: 387
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 22:45
Added potential reserves with drilling of upper Jurassic ....
iamrich
Posts: 926
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 20:31
Thanks guys,
1cagney
Posts: 149
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 19:52
Q2 2019 for at least 4 drills and 1 horizontal. 2 optional horizontals in the same time frame.
iamrich
Posts: 926
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 19:38
Is there any specific time frames on the drill date ?
1cagney
Posts: 149
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 18:50
Loz, I agree. A lot can happen before the drill commences. Newgrange farmout should be this year and PVR ain't giving that away for nothing. There's a lot of interest in Dunquin South. A company take out is becoming increasingly possible by any of our partners.
Loz786
Posts: 2,813
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 18:38
Min 25-30p imho
iamrich
Posts: 926
Opinion:No Opinion
Price:12.90
RE: PVR Barryroe
Fri 17:57
Where do you guys see the share price on drilling?
Bronxville
Posts: 453
Opinion:No Opinion
Price:13.05
RE: PVR Barryroe
Fri 14:07
Manyana...Yes the new charts apparently show much more oil at deeper levels..Jimmy mentioned it briefly but has gone missing..
If there is 1.6 bil barrels of recoverable oil its a game changer.
And I really like Newgrange...its massive...and then we have 28% of Dunquin South that might have all of Dunquin North oil..
Its easy to get excited when you actually see movement..
Manyana
Posts: 8
Opinion:No Opinion
Price:13.15
RE: PVR Barryroe
Fri 13:34
Barryroe certainly fits with the biggest fields in the North Sea and it is probably the shallowest of them at 100m which means development is far easier in calmer waters than rolling around off the West coast in thousands of feet of water before you get to the sea bed.

It should also be noted that those you mention in your list have been pumping oil for years even as far back as the 1970s so they will have been somewhat depleted.

Initially Barryroe was reckoned to hold about 370m barrels but this has been revised upwards to between 1billion and 1.6billion and that is without going deeper than the current levels even though it is reckoned there is even more lower down.

On top of that is the gas which does not seem to get a mention but must surely play a major part in replacing Kinsale Energy who are fast running out even though their gas field lies on top of Barryroe.

If you have not watched the following video it is worth a look. If what it says is correct, then the current price of Providence, now that a deal has been done to develop it, is peanuts.

If Barryroe on its initial estimate of 370m barrels was reckoned to be worth about £20 a share and in the good old dasy hit about £6 when there was only 60m shares what price would you put on the shares when there are 600m as now but the amount of oil estimates has increased by a factor of 4?

Worth a look at:

https://www.youtube.com/watch?time_continue=161&v=YI2y7649C5I
BuilderPete
Posts: 30
Opinion:No Opinion
Price:13.15
RE: Mcap
Fri 13:08
Would be thinking then we should get a re-rating up to the start of drilling and further farm outs would add to that price !!
DelBoi
Posts: 496
Opinion:No Opinion
Price:13.15
PVR Barryroe
Fri 12:51
Just to put Barryroe in perspective, the link below gives a view on the largest North Sea oil fields. BR could sit firmly on that list.

https://www.offshore-technology.com/features/featurethe-biggest-oil-fields-in-the-north-sea-4836046/
TGrus
Posts: 665
Opinion:Strong Buy
Price:13.20
RE: Mcap
Fri 11:18
if compared to HUR then PVR £320 million market cap and share price round 50-52p!
TirnaNog
Posts: 916
Opinion:No Opinion
Price:13.20
RE: OK!
Fri 11:10
Glad to be of service Kums. Interesting name:)!
BuilderPete
Posts: 30
Opinion:No Opinion
Price:12.95
Mcap
Fri 10:32
If HUR are worth £1billion although they are further along the development path what should the Mcap here be ?
KUMS
Posts: 19,315
Premium Chat Member
Opinion:No Opinion
Price:12.90
100k buy of shares
Fri 10:21
just gone thro.
Corsoloran
Posts: 51
Opinion:No Opinion
Price:12.90
RE: PVR
Fri 09:48
Indeed, unfortunately I don't even have a spare 2k for anything at the moment, but nice to see it rise.... finally.
KUMS
Posts: 19,315
Premium Chat Member
Opinion:No Opinion
Price:12.875
OK!
Fri 09:32
TirnaNog you made me laugh so much that I am now in!
TirnaNog
Posts: 916
Opinion:No Opinion
Price:12.425
PVR
Fri 08:44
This is the biggest no brainer since no brainers began for a risk free 50% rise pre drill. If I had a spare 200k I would put it on PVR. But you know what they say, "If If was an ass we'd all have a ride on it!"
LONGWAIT
Posts: 1,987
Opinion:No Opinion
Price:12.00
RE: Wake up everyone!!!! RNS!!
Thu 16:45
I meant to buy more on Friday for 10.5 p, which I believe will later seem to have been a bargain.

I lost a lot four years ago and I am not saying TOR deserves his past remuneration, but he has been the target of spiteful remarks.

I have never believed that he is a crook.

The share price months ago of less than 5 p did not reflect the company's potential.

If all goes well, it will reach £s in due course.
wraith
Posts: 5,386
Opinion:No Opinion
Price:11.60
RE: Wake up everyone!!!! RNS!!
Thu 12:13
Been waiting around 2 Years myself (bought back into PVR 2016) Bronxville,...very happy with this news, not long to wait now, for Barryroe,...... DRILLING PROGRAMME OF 5 FIRM WELLS AND 2 OPTION WELLS SET TO COMMENCE IN 2019.
Source : https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PVR/13797485.html

BW
Corsoloran
Posts: 51
Opinion:No Opinion
Price:11.60
RE: Wake up everyone!!!! RNS!!
Thu 12:06
We did indeed, I don't get why the reaction is so muted. 9 million cash on top of the original deal now, 10 million later, more wells, ministerial consents and a drilling programme in a couple of months. What's not to like?




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