London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
LW >>> "You think the proposed farm-out is nothing more than an appraisal programme for Barryroe?"
No, that would be pointless. But we know nothing about the appraisal program, let alone the development farmout. APEC's grand plan was for five appraisal wells and two sidetracks. Will SpotOn be so ambitious? Afaik, the survey permit on the two sites that PVR failed to survey last October will have expired by the time any agreement is reached. Linn has applied for two others, including the new eastern edge of Barryroe. How many appraisal wells do they plan to drill? It sounds like the previous two sites are out of favour. So will it be two wells, or just one? That's a lot of eggs in one basket. Even with the great potential of Barryroe it's possible to come up empty with just one or two wells. But there's a lot of hurdles to jump before we even get there, chief among them being whether yet another brassplate operation with no staff or assets can raise any money.
I'm the one who should apologise, Delboi!
I should have checked with you first whom you were replying to.
I think the main thing is that they are Norwegian, not Chinese, but I suppose I had better be careful about what I say.
Sorry Longwait I was speaking to Pheobus, I think this a fantastic opportunity. I used to work with a Norwegian O&G service company called Aker Solutions who adopted this strategy in the 2014 -2015 oil downturn successfully. I wouldn’t be surprised if they were in the mix.
These services companies are coming under increasing pressure now to retain skilled staff and manage capacity. BR being one of the last remaining elephants to be developed provides full lifecycle development opportunity.
Early days but very encouraging!
What it actually says in the RNS is:
'the Company has granted SpotOn Energy a period of exclusivity until October 31, 2020 during which time SpotOn Energy will, working in collaboration with Providence, seek to agree an appraisal work programme for the Barryroe field and develop commercial terms with the aim of concluding a binding farm out agreement within that period.'
I therefore suggest respectfully, JH, that both you and PS are wrong on that point.
Well that is what it said on the RNS. That and no more. And it ain't even been consummated yet.
' We are in exclusive discussions about a mere appraisal program until the start of November.'
You think the proposed farm-out is nothing more than an appraisal programme for Barryroe?
LW, if the Barryroe oil is extracted of course all bets are back on and a 75% dilution will be more than tolerable. However, look at what is actually in prospect. We are in exclusive discussions about a mere appraisal program until the start of November. Going on past form even such a simple thing as mobilising a survey vessel can take months if not years. Any quicker and the operation will take place in winter (though that might be acceptable in shallow water). Regardless, a survey will add no new information about the oil and gas resources.
So even if the dice fall favorably (agreement is concluded, someone stumps up money for survey) that leaves us around this time next year in pretty much the same boat -- no appraisal drilling done, no signed up partner with deep pockets for further development. Given we've been exactly here before, why should anyone think the share price will be at 9p? If you think I am unduly pessimistic, go back and look at where we were two years ago. Pretty much the same as now, with a "deal" in the offing and we even got a survey done ... albeit only half done and targeting the wrong locations it seems. If Providence wants to prove it is no longer the clusterfark it has been heretofore, they need to do a lot more than chat with some brassplate entity for six months.
You mean that for me to be right, the share price would have to be 9p NOW, Delboi?
How large a premium to the placing price would you expect?
The market has doubled LOGP's share price during the last two days.
I wonder what you make of that.
If one based one's estimation of a company on what the market says, one would be most inclined to invest at the top.
Market disagrees with you sir!
Two things you omitted, PS, are
the fact that if the oil from Barryroe is extracted, it would be difficult for the share price not to reach 9p before long, based on the amount of oil down there and the exercise price being pitched at 9p
and the fact that the prospective farminee is Norwegian, not Chinese.
If the share price converges to 1.5p, as one would expect, that would give any private investor buying at that level a return of 500 percent.
You complain about the dilution caused by the farminee being offered an exercise price of 9p, but that dilution can occur only if the share price reaches 9p, which shows some confidence on your part!
By the way, a mere 73 people have died of Corona Virus in Norway.
"Whoever has the banking online fob and alarm clock, can they please return them to return them to reception"
I'm still willing to give Mr Linn the benefit of the doubt but I'm a little sceptical like others.
Yeah...Be interesting if that 200K ever shows up. Ha Ha. I'm betting it won't and we'll have some feeble excuse to explain the delay, same as happened before.
'SpotOn will invest another £200,000 within six weeks, with a further subscription at the prevailing share price.
Additionally, two series of share warrants will be issued to SponOn (sic) and the participants in the placing – one with a 3p per share exercise price. and the other exercisable at 9p per share.'
We will know soon enough whether Spoton are comparable to APEC, when the date the money is due to be paid arrives, and if and when they exercise their warrants.
They and Linn obviously think that when Barryroe finally gets going, the share price will reach 9p; otherwise, the exercise price would not be pitched so high.
Great idea JH77. There's that word again, 'consortium'. My BS meter is reading OVERLOAD. A consortium of what exactly? Does the emperor have any clothes? If they want us to take this seriously they need to provide a lot more detail.
If anybody out there has any mates working in the Offshore O&G sector who happens to be based in Stavangar....can I suggest they ask him to pop around to Spot On's Stavangar "office" and see if they can "spot" a nameplate on the door or perhaps ring the bell and see if there are any human beings in residence.
7 months to agree terms and a field appraisal programme. What a sad effing joke. It could and should be sorted in 7 days after nearly 10 years invested in the bloody thing and various scenarious / studies / surveys / commercial talks with others. It's time to either **** or get off the pot and this timescale is totally ludicrous and is only prolonging the agony and guarantees wages until all the money is gone (again).
I'd trust Del Boy more than that SpotOn Energy. What an utter joke! Do they think we're stupid?
LOGP RNS SpotOn Energy Limited ("SpotOn").
SpotOn is a Norwegian company, registered in the UK, which takes a progressive approach to cost effective offshore oil and gas field development, working with a consortium of western and world leading services providers to deliver development projects.
Where did the idea that the money to be raised will be used to pay "redundancies"? The money from last September was used to do that.
Don't underestimate Norway. I have dealt with Norwegians and other Scandinavian countries and like most Scandinavian countries they are very easy to deal with. You do not need a written contract in most of those countries because they believe "their word is there bond".
The whole object of Spoton is for Norway to have an entity in the EU as it is not a member. How many single one share, one (solicitor) director exist fronting Cayman or Virgin Island companies? Hundreds registered in the UK, mainly in London. And these companies front vast amounts of money "hidden" away with the "real" owners being legally hidden.
Norway is awash with money from its oil and gas. In fact, Norway has the biggest wealth fund in the world, even bigger than China. And that fund recently said it was divesting itself of shares in oil and gas shares that are not performing among them Tullow Oil and will only invest in oil and gas companies who also envisage renewables.
Providence would actually fit into that given that Seven Heads and Kinsale can be used for gas storage and the "famous" hot well off the west coast has a potential renewable energy source.
Where Spoton is different from the other failed "deals" is that Norway has a lot of money and neither Sequa or APEC had, it would seem, any. So while this might seem a very strange deal it probably has a better chance of success than either of the other two as the money will be no problem and Providence's issue is just that, lack of funds.
The best thing that could happen here is a take over by Cairn who have still got an interest in Spanish Point and have the clout to develop Barry and SP. They could probably buy the whole shootin gallery for what is pocket change to them and at least the shareholders would get some money back and would be spared further misery.
Sounds like a desperate attempt to roll out some positive news while appealing for funds needed to keep the lights on. 33% dilution for £3m and, with the warrants -- IF things go as well as possible and the company is actually worth something in a year's time -- a 50% dilution for £27m. So not only have we hitched our wagon to another opportunistic fly-by-night, everyone's breakeven price will double too. That's BEFORE any farm-in agreement which would doubtless halve the value again at very best. All of that would be tolerable if this thing was real but it smacks of another Sequa/Sapinda/APEC. The counterparty doesn't have the required funds themselves so chances are they will lead PVR a merry dance until they ultimately fail to deliver.
The main entity is Edinburgh Corporate Solicitors Ltd - 2 employees (Quinn and Dougan) and Micro Accounts filings, so very small turnover. Many other active and dissolved trustee and nominee accounts, so appears to be acting as a UK front for offshore investment. It feels extremely murky, hence a complete lack of reaction on the share price.
Beginning to look like Alan has been on the blower to some of his old school mates!
Well ECS Nominees are a grouping of solicitors/barristers..same address as Spoton Energy..
Thanks. All very opaque this.