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I know ive stated this before but TOR didn't have a choice. The investors got rid of him. He wasted valuable time and money on APEC based on a tenuous link to CNOOC etc. When this fell apart, it's not beyond the bounds of possibilities that the main investors said enough. Furthermore, if you were a potential farm in partner, would you want to farm in with him running the company. Just look at the millions wasted on dusters, legal disputes and unwarranted bonuses over the last number of years.
Pagent holdings have probably lost 50% plus on their 15% holding. Similar for the rest.
It's going to be a worse deal for sure. There will be no full carry unless they put together a number of partners. Still think an outright sake of exola is very likely option too. If you are innocent enough to take a chairman's word on something as subjectice as "world class assets" at a given point in time, this probably isn't the share for you.
I don't think they need either of the tallow director in full time capacity. The data room is set up for ages. Anyone interested has made themselves known. They don't need contracts just to negotiate something.
Ticking up a bit in London over the last few days.
I think you may be alluding to an earlier post of mine, in which I wrote:
'The big question is: what happened during TOR's talks with interested parties following his announcement that it was all over with APEC?
If they are really interested, why did he resign , and if they aren't, what would a new CEO be able to achieve?'
I think I've answered that partly in my last post:
'I think an inferior offer may have been made, but TOR wouldn't accept it, and preferred to go rather than be accused of selling the company short.'
Of course, an alternative explanation is that although the majors showed interest at first, they decided not to make any offers and TOR finally gave up.
That brings me back to my last question:
'what would a new CEO be able to achieve?'
Two things.
Like you I am searching around for a reason why Tony is chucking in the towel. As far as we know, he has been in far worse situations over the last ten years and he did not do it then, so why now?
First of all, I thought the APEC deal was a bad one for Providence but a great one for APEC or anybody else on the terms negotiated when you consider that, for say $200m to develop Barryroe on a rolling basis, they got 50% of a multi-billion asset plus potentially 10% of Providence at 12p a share. So, it is amazing that APEC has not progressed the deal unless they have discovered something wrong and they are, in fact, a pack of chancers.
The big value to Providence in the APEC deal was it was a zero-cost carry. A no foal no fee oil deal so no risk to Providence and because they had no money it was the best deal in town but not necessarily the best deal.
Your point about Tony leaving is also very interesting as, like you, I cannot fathom how the current situation is any different to the last seven years where he bul****ted his way through gungho numerous times without any call for his head. So, as you say why is he leaving now as given the board structure there was nobody pushing him out?
One worry is that they have found something technically wrong with Barryroe, hence APEC's and any other's reluctance to take it on and Providence have been leading us on with "World class asset, etc..." for years and now the proverbial has hit the fan.
But Plunkett has put his head on the block by saying Barryroe is a world-class asset. So,like you, I have seen no logical explanation as to why Tony chucked in the towel especially as we are still getting the message from Plunkett's statement that Barryroe is a major asset when he said:
"A major milestone during his tenure at Providence was the successful drilling and testing of Barryroe located in the North Celtic Sea Basin which has provided the Company with a world class development asset which is capable of providing significant shareholder value in the coming years."
So he too is putting his proverbials on the chopper or Is he too telling porkies?
As Milton says "They also serve who only stand and wait". Why are we waiting and for how long?
TOR said that PVR did receive approaches from majors interested in taking APEC's place.
I don't think he was making it up.
I said at the time that I thought PVR would have to accept an inferior deal, whereas Manyana said he thought a better deal would be offered.
I think an inferior offer may have been made, but TOR wouldn't accept it, and preferred to go rather than be accused of selling the company short.
I think it would be better to accept an inferior deal and get on with it than face possible oblivion.
If I'm right, why do they actually have to get a replacement for TOR?
Why can't PB do what needs to be done?
Re: McCoss ... Providence doesn't need a new exploration director. It needs a bucket load of cash to fund development of Barryroe. A very, very large bucket. After years of trying I see no reason for optimism. Just maybe, if Providence goes begging bowl in hand with a farm down of 80 or 90% of Exola, it might attract a dependable suitor. Even at that it would have to happen quickly -- perhaps implausibly so -- with cash up front to keep the lights on. Personally I've put the PVR shares in the bottom drawer and mentally written them off.
Thanks Longwait!
I saw it here, among several trades, timed at 9:06.
It has since disappeared.
Longwait
That half million is on dublin exchange? Where are you viewing it?
Thanks
It is only now that O'Reilly would be entitled to buy shares as he is no longer a director.
Directors cannot buy shares when there is information or discussions ongoing that can materially alter the company's value as it is classed as "insider trading".
So, if Providence was to develop Barryroe, O'Reilly could make a lot more money by buying now rather than depending on his salary which people regarded as exorbitant.
As for the speculation about the tie up between Providence and ex-Tullow, it would be a benefit as long as they come bearing "gifts" in the form of money to develop Barryroe. The Heavey/Hickey deal with Carlyle looks very promising but perhaps McDade and McCoss are going to join Boru instead.
maybe it's just coincidence..but it does seem remarkably good timing for two companies based in Ireland with both experiencing exec level resignations.
Just a small bit on the Proactive investors site this morning:
Tullow Oil and Providence Resources both have their roots in Dublin, and whilst their respective scale, profile and stature are quite different they have something else in common …
Both firms have ‘lost’ their long-standing chief executives in recent days.
Something else they had in common, until today, was Angus McCoss.
Tullow’s now departed exploration director was one of only two remaining board members at Providence following the resignation of Tony O’Reilly on Friday.
Providence is very much at a crossroads. It has a substantial undeveloped oil field with a currently uncertain future following recent problems getting Chinese funding to completion.
The AIM-quoted Irish firm has just launched a process to identify and recruit new leadership for “its next phase of development” – if only the company knew of any out-of-work executives with proven track records delivering discoveries into development and subsequently production.
Now, this is arguably the laziest of lazy speculation – and we certainly couldn’t claim a recruiter’s fee for the suggestion – but, one could imagine that Providence chair Pat Plunkett may check the availability of his non-executive director.
Really, though, the only concrete thing to say here is the next appointments at Tullow and Providence will be decisive in the future of the two very different companies.
Someone bought half a million PVR shares this morning.
Wonder whether it was TOR.
Maybe he thinks prospects have improved.
Tullow down 72%. Does anyone remember if PVR ever went down by that amount in one day?
Quite possibly
Very funny Older!!
...because he couldn't trust TOR not to screw things up.
Specul...let's hope you are right.
Why didn't McCoss use his " great network of friends" in the immediate past!!!
TULLOW...60% down!!!
could be great shout McCoss and MCdade Joining here, they have a great network of contacts in the industry and without doubt could bring Barryroe into production with a partner
Having listen to a car crash of a conference call, you can definitely rule Tullow the company out of anything providence related. I don't think they will exist in a years time. I think McCoss is being hard done by. The issues are not in his remit. Be delighted if he devotes more time to PVR.
Which is the Better Bet?
If Barryroe was developed it is in fact a better prospect than Tullow.
Tullow produces about 70,000 barrels of oil a day from 67 producing oil fields and has debts of $3.5billion. Barryroe has potentially production at 70,000 barrels a day which is anticipated to rise to 100,000 barrels a day from a single oil field and no debt.
Now that McCoss has quit Tullow does he plan to become CEO of Providence as he is currently the only active director in Providence even if it is as a non-exec.
This Tullow-Providence link up gets more curious and interesting day by day.
Hopefully, some resolution before Christmas would be nice and who is going to write the year-end review?
Indeed, very interesting!
Paul McDade, Chief Executive Officer, and Angus McCoss, Exploration Director, have resigned from the Board of Tullow by mutual agreement and with immediate effect.