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I agree with everything you wrote, Manyana, especially about my unforgivable pedantry!
If by 'float' you mean a fund raise, surely they will have to raise money before a deal is finalised, rather than after?
Are you a pedant, Longwait, to be quibbling over 44.44p or 45.76p? The price is pure speculation based on a particular set of circumstances.
What we want is for Linn and/or Plunkett to pull of a deal and then go for a float. That way, the price of the float will reflect the potential and not the current zero value wen they have nothing to go on.
There are potentially five or six possible deals on the table. Any one will turn this baby round.
I made it more than 44.44 p, Manyana - 45.76.
But if they issue 300 m shares at 2.75 p, that would raise £8.25 m.
How long would that last?
Until First Oil?
As we have discussed before, the real benefit would come from revenue, provided PVR can retain its interest.
Why sell a barrel for $1, when you could take a share of the profits instead?
Still plenty of scope for dilution. It all depends if it is with or without a deal.
Look at the facts.
When Providence was at its peak after discovering Barryroe it had 60m shares with a price of $6.65. That valued the company at £400m. So that should be the benchmark.
Presumably, if Plunkett and Linn can light up a deal it should go back to that valuation as the assets are still there.
Today Providence is worth £18m and a share price of 2.5p because it has no working assets.
So, if they announced a partnership to develop Barryroe what price would you expect? At the current level of 600m shares and a company value of £400m that gives a share price of 66.66p share. If Providence issued 300m shares and with a company value of £400m the share price would be 44.44p.
So a 50% dilution with a deal gives a share price of 44.44p. Now I would be quite happy with that. To be really good, if they issued 300m shares would be the issue price of the new shares and even if they got back to their 5p a share it would give them £15m working capital.
Now, I could live with that and any value above 5p would be real bunce.
Here's hoping.