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Again, purely guessing, they may have been riled that he wasted two years on a wild goose chase and they didn't have the confidence to continue with him even if there were other parties in the offing. Also, I've never seen TO'R speak except in a handful of media/marketing interviews, but he seems to me to have the charisma of damp cardboard -- particularly surprising for someone who so clearly spends a lot of time in the sun. It was interesting to see the share price take a small bump upwards just on the mere news that TO'R was leaving.
I too said some time ago that I thought major investors gave TOR the push, but was it because of something that happened - or didn't happen - when the oil majors approached TOR?
It's intriguing because if the majors were interested, why couldn't TOR do a deal and if they weren't, why would major shareholders think anyone else could?
I suppose the only explanation is that the shareholders decided they no longer had confidence in him to do a deal.
Good questions LONGWAIT. My pet theory is that the IIs banded together and threatened to call an EGM to oust TO'R. They want a replacement deal with someone else (someone competent) at the helm. Pure speculation on my part but it's the only thing that makes sense to me.
Would it require a miracle to find a partner willing to accept 75 percent of Barryroe?
The fact that Total have given up on Avalon and ENI have delayed the site survey for Dunquin South worries me, but TOR did say majors were interested in taking APEC's place.
My only question about that is: if so, why has someone had to take TOR's place?
If what he said is true, then they must have their price and a deal could surely be done.
Assuming the oil is still there, wouldn't 75 percent of Barryroe be a good deal for them?
That would leave PVR with 20 percent and LOGP with five percent.
If the majors told TOR they weren't interested and there is no prospect of a deal ever being done, what then was the point of appointing Alan Linn?
Nobody is going to work for share options alone. Can't see new CEO taking less than 300k per year. While they no longer have an old Georgian building to themselves, the new offices in Sandyford are in a modern new building and certainly won't be free. Only half of the survey was done -- two well locations out of four. If the rest have to be done then the survey boat's mobilisation costs will have to be paid a second time. If they don't do the others then a large part of the Barryroe potential won't even be appraised. PVR has to pay a fee to retain each of its licenses annually. There are doubtless many other costs we don't know about.
The share price is down by a third since the last raise which was only enough to keep the lights on until February. And that cost us a ten percent dilution. The share options are another 2.5%. With the market cap under 40m, any serious raise is going to cause serious dilution. The APEC money is never going to show up, that was always a mirage. We now need a miracle to find another partner willing to invest on similar terms, although they will doubtless want a bigger chunk as PVR is over a barrel.
PVR being short of money wasn't the problem, until the survey was booked and the money did't arrive.
With the last dilution, if you try and look at the positives (and that's not easy), the survey has been completed. Paid for by PVR.
If there is a similar cash raise and PVR is on skeleton staff AND the new team are going to take their major renumeration in the form of 2.5% bonus not large salaries as Manyana has suggested then PVR could sustain itself for a very long time whist either APEC sorts the finances allready owed or the oil price picks up and another pasrtner and all the costs involved in that switch can be found.
If yoiu take a very long term view a cash raise is not the end of the world but a step to a much much higher SP.
Either by having funds in the coffers to regain our cash by legal means or take the project forward with a more enthusiastic partner.
Fair point about the closed period. I'm already working off the premise that they will raise again so overlooked that. Hopefully you are right Manyana
A further thought crossed my mind. Why did Providence announce a share options deal to Linn when no share option scheme actually exists. They have, in fact, offered him an option deal on the basis that a new deal will be agreed at the EGM.
They also offered him the option deal now while the shares were grovelling around the 4p mark, as that is how the new deal, presumably will work, based on the share price the day before the offer.
So, by preempting the new deal and granting Linn potential share options, which of course is legal, they must anticipate that the share price is going to rise, possibly before the EGM which will ratify the share options scheme.
Given that we have once again entered the twilight zone of a share price drifting downwards a bit of good news would not go amiss.
If Providence is working on a deal, Linn is precluded from buying shares in Providence. That is called a "closed period".
The reason why neither he or any other board member can buy during this period is because of "insider trading".
Given that I hope he has come with some purpose other than to become another "Tony O'Reilly", all gas and no gaiters", which means he is embargoed from buying shares which de facto is a good sign.
As for the options; the EGM is not to apportion shares to Linn but to set up a share option scheme. I presume it will be exactly the scheme enacted in 2009 which lasted until 2019 and is generic with no specifics at the time of its creation.
I suggest you read this which will explain why Linn's share option price was put at 4p.
"In 2009, the Company adopted the 2009 Scheme which provided for the award of options over Ordinary Shares up to a maximum of 5% of the issued share capital of the Company. Under the 2009 Scheme, which is a ten year scheme, the exercise period for any options granted is seven years. The 2009 Scheme set out certain share growth performance criteria with the base price against which such criteria is assessed being established from the closing market price of the Ordinary Shares on the date preceding the date of grant. "
Would you vote against this option deal?
You are right JH77. I think he should be buying shares with his own money if he is receiving options. We don't know what his Base salary is but if it's as generous as the previous incumbent then I think he should be buying with his own cash.
When do people think we'll hear about a raise if no deal can be struck?
Options are potential shares. They do not exist and only come in to play when they are activated in a deal. So Linn has been offered a potential situation starting next year for three years but with shares to be issued and not shares that exist.
So what are you getting hot under the collar about? A figment of your imagination I think.
Until the share options scheme for employees is set up and agreed at an EGM we don't really know what the situation is. After all, if you don't like it you can vote against it at the EGM and if you and a majority of the shareholders agree it will not come into effect.
So how much are Providence shares worth today? 3.85p and possibly heading back to 3p if we hear nothing. So why are you getting hot on sweaty over something that will not happen for a year at least at a price in excess of today's price?
You must be convinced Linn is going to make a deal and make a killing. Well, I for one wish him well if he can pull that one off. As you say, it has been going on for "effing" ten years so what's new?
O'Reilly could not do it. Good luck to Linn if he can and he is welcome, in my book, to any upside his options bring if he can pull that one off.
This new fella Linn should never have been given such a large chunk of options at such a low strike price. All he has to do is maintain the SP at the present low level, and it gives him no incentive to stick his hand in his pocket and buy some shares himself and demonstrate some commitment and confidence. Looking like a new placing on the way which will drive the SP down again, giving him the "challenge" to make it soar to the current dizzy heights. this bloody saga has been going on now for the best part of 10 effing years! Wish I could see a way forward for this mess!
Calving cows? I think of it more like bacteria reproducing. Happens faster than you can keep up, and keeps multiplying until it has consumed all available resources. Then it dies, leaving you with nothing.
I'll accept the dilution as if Barryroe ever does get farmed out on favorable terms I can still make a return. If it doesn't (as I expect) I won't have been fooled (yet again) into funding this jinxed old dog.
Shareholders can look forward to further Dillutive rights issue supposedly to be used to part help fund Barryroe project however how many times has this happened before only to see funding flitterd away in wages and expenses and mismangement.