Some more information on Barryroe farm out process about a third of the way in to the below video.
It's promising to hear that a farm out was signed, but the deal fell through because the counterparty failed the condition precedent of raising funds (I think this was the one a couple of years ago with that party whose name began with S...I can't for the life of me remember the full name!)
OPEN LETTER TO PAT PLUNKETT CHAIRMAN PROVIDENCE RESOURCES November 19, 2016 | Posted by admin Dear Mr Plunkett
I write in an open forum following our brief dialogue on the 16th November 2016 in which you made clear that you deemed a large private shareholder (holding in excess of seven figures in shares) and one with the support of many, many other retail shareholders not sufficiently important to engage directly with.
Providence Resources (PVR) shareholders have in recent years had a resolute belly full of the type of attitude that you projected and which is extremely dismaying given the hopes I and others had of a new direction and stewardship of PVR following your appointment in September of this year.
As another year closes out, despite numerous public pronouncements by our CEO that a Barryroe farm in was “imminent” we still sit here with a deal on this field unconcluded. For TOR Jnr to remain in the CEO seat given that the oil price has near doubled from the beginning of the year and many mid-tier explorers have increased multifold whilst we have declined approximately 30% is incredible in the extreme. As a large shareholder I am at a total loss as to how this individual with less than half the stock I hold and not even 1% of the total share count (which was heavily diluted thanks to the bringing of the company to near bankruptcy in the spring) holds onto his position. It beggars all belief with regards to accountability and commerciality.
I also make the point that Spanish Point has gone quiet, again in contrast to commentary by the Board last year that 2017 would see the commencement of drilling. I quote from your RNS of Dec 17th 2015 – “The Operator now plans to commence operations for drilling during 2017, subject to governmental approval” (Ref Spanish Point). The farm in process here has been active since October 2015 and Tor Jnr seemingly has, again, drawn a blank with regards to the preparedness of a party to farm in.
One could be forgiven for concluding that the representations made by the largely same management team in recent years are simply not believed by the industry (hence no farm in) as the excuse of a weak oil price holds no water given the Barryroe farm in process was originally commenced in a triple digit oil price environment. If this is the case, then by extension one could conclude that shareholders have been led a merry dance for years. Quite why the institutions continue to humour ToR Jnr, in particular to the extent that they did with the $72m capital infusion in early summer this year, will be one of life’s enduring mysteries…
Two Hopes here 1, Providence strike it big and lucky on Druid. 2, the oft mentioned Farmout actually happens. Meanwhile, it's a parked taxi waiting for green, with the meter ticking forever. and shareholders are stuck in the back.
Doubt if there would be much left for shareholders in the event of a winding up. Might as well sit it out until mid 2017 and see if wonder boy Tony can finally pull off a deal on Barry. Very frustrating I know and painful to be sitting on such massive losses.
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