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At least it looks like the survey is on schedule, CV arriving in Cork 9pm tomorrow to begin on 23rd. If all goes to plan they'll be finished the day before the start of COP26. Pity we couldn't do a sneaky drill while Ryan's on holidays in Scotland.
A "strategic review [to] determine the strategic plan" does not fill me with confidence. Reminds me of the age-old bureaucratic euphemism, "progress is continuing". It would be nice to have been told what went wrong with the plan we already had. We know that SpotOn didn't understand how the Norwegian Export Credit facility worked. So yeah, they deserved to lose their 40% for that screw-up alone. But didn't that just mean they needed to raise more via the planned bond? What went wrong there, and why couldn't PVR just negotiate with the consortium and Pareto themselves (as indeed they said they would)? There's something else we weren't told. Did Pareto tell them the bond wouldn't fly? Was it the political uncertainty? Either way, PVR are in a fix. 80% of nothing is worth exactly the same as 40% of nothing.
Exactly.
And what should not be forgotten is that having removed SpotOn, Providence now owns 80% of Barryroe as the deal with SpotOn was for them to have 40% plus warrants at peanuts.
It would seem to me that Linn, having put SpotOn to the pin of their collar realised they were in for a big killing with not very much investment as they would technically got "a whole lot" with not much input other than putting the consortium together.
That is why I say Linn did Providence a big favour and I, for one, believe there are other reasons why he left. For example, how could the board in place have the power to get rid of him as they are all non-exec.
Obviously they have the power but would they have had the will? Not in my opinion and not with a cursory "goodbye" from Linn. They would surely have kept him in place until they had assigned a new COO before announcing his departure to the world.
The following is the composition of the board where you see there are now no active directors as the are all non-exec. That means the door is open to a COO who can now come from anywhere and, since I do not believe Linn dirtied his bib this, to me, is a strategic move to a form of consolidation, probably with one of the major members of the consortium.
https://www.providenceresources.com/board-and-management
So, other than they are going to sign up TheShen as the new COO - in which case I would sell my shares even at a loss - I am happy to sit on my hands and wait for the next move, whatever that is going to be.
And remember, none of them, including the major shareholders, have sold their shares or warrants so they must think Providence has a future.
Manyana, you are right, whilst the farm out agreement with SpotOn was terminated, it has been detailed by PVR, that the intention would be in the main to adopt the way of working, that the individual contractors (that were part of the development consortium) had agreed to deliver, as you also detail, all should be revealed with the strategic review and the related financial strategy,...GL S
Following termination of the farmout to SpotOn Energy, the strategic review, which will include independently evaluated assessments of the field's development scenarios and their potential, is considered essential by the Board.
A snippet from the Half Year update at the end of September....
"The results of this strategic review, encompassing both Providence's Technical Strategy and it's related Financial Strategy, will be completed in Q4 2021 and will determine the strategic plan for the development of the Barryroe Field."
Do we know if the SpotOn agreement was terminated?
SpotOn was just the "management" of the consortium. They might be gone but are the actual consortium still in?
Check the following and note where it says "The consortium is involved in the development planning process from day one and expects to deliver lower cost per barrel development and operating costs versus traditional offshore field developments".
It then goes on to delineate what each member will bring to the party.
So the question is, SpotOn is gone but are the rest onboard and are they part of the planning development for Barryroe?
Any one of those could develop Barryroe on their own so is perhaps that Linn is gone because these are still in and are going to take over the Barryroe project?
Hopefully all will be revealed in the Financial Review which could be published any day but at the latest by the end of the quarter.
I expect, though, that we will wait post survey for any movement on that front.
https://www.providenceresources.com/sites/default/files/consortium_update.pdf
https://www.providenceresources.com/sites/default/files/consortium_update.pdf
ps, a good point, but I think the timing of Linn’s departure was more aligned to the SpotOn agreement termination, the fact his resignation was announced almost 6 months to the day of that agreement being terminated, makes me believe this has been more premeditated than what it appears, I would suggest he has basically served out a 6 month notice and the survey timing is just a coincidence,…GL S
Celtic Voyager in Galway. Expecting to see it heading southward by the end of the week. Don't know if it was intentional, but probably a good thing that Linn's departure was timed as it was. Even though the survey has effectively zero to do with Barryroe's prospects, a CEO departure straight after it would probably set some less discerning tongues wagging.