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The devil will be in the detail of the farm out deal if it concludes. Such deals normally include the new partner paying a pro rata share of past costs...which in this case are substantial. This will be a great help for logp in particular and will boost their cash reserves. All up in the air at present though.
Great upside here should farm in happen. The only thing making me move my money across to PVR here is that LOGP will need a raise at some point whereas PVR has circa 42m euros in cash, 80% Barryroe and valued £55m. I still see 10bag potential here just I hope to reenter on the back of a raise should it happen. Keeping the powder dry atm. Either way Barryroe is such a beast of an asset holders in both companies will do exceptionally well in 2018 all being well. Assuming 50% farm out would leave LOGP 10%, PVR 40% id say is a likely scenario where majority of drill costs are covered. Still 30mmbol net to LOGP which is worth £70-90mln MC vs the current....
Lansdowne’s Barryroe stake worth much more than market value, broker says Share 12:32 11 Jul 2016 Arnstein gives some 10.3p per share for his net valuation Lansdowne’s stake in Barryroe, including 6p per share for an initial development which would target 70mln barrels of oil. Offshore oil operations, Ireland INVESTMENT OVERVIEW: LOGP THE BIG PICTURE The undeveloped oil field is estimated to host some 310mln barrels of oil. Lansdowne Oil & Gas Plc’s (LON:LOGP) stake in the undeveloped Barryroe oil field, in Ireland’s Celtic Sea, is worth considerably more than the market value of the group’s AIM quoted shares, according to broker Brandon Hill Capital. The 20% stake in Barryroe is the company’s main asset. Analyst William Arnstein, in a note, acknowledged that whilst the absence of a farm-in partner for Barryroe may continue to weigh upon Lansdowne shares, the company is now better placed to either hold out for the ‘right’ deal or take proactive approach to add shareholder value. Arnstein’s assessment comes after Lansdowne raised £2.1mln of new capital in June, and as Barryroe operator Providence Resources PLC (LON:PVR) also strengthened its balance sheet with a US$76.6mln funding. Barryroe is estimated to host some 310mln barrels of oil and 169bn cubic feet of gas and, whilst testing of previous wells has shown the field’s economic potential, Arnstein says further r appraisal is considered necessary prior to development sanction. Significant exploration and appraisal upside has also been identified by Providence and Lansdowne, he added. Arnstein gives some 10.3p per share for his net valuation Lansdowne’s stake in Barryroe, including 6p per share for an initial development which would target 70mln barrels of the field’s contingent resources. He notes that the exploration and appraisal upside is excluded from his valuation. “When and on what terms a farm-out might be agreed remains the big unknown and the key value driver for the company,” the analyst said. “The recent US$68m capital raise by the operator, Providence Resources, did not include funding for an appraisal well at Barryroe and may indicate confidence that ongoing discussions with counterparties will result in a satisfactory outcome. “With Lansdowne trading at just 0.12x total NAV, it is clear that the market is taking a far more pessimistic view, providing a very significant upside potential if an agreement is reached.” Lansdowne shares currently change hands on AIM for around 1.12p each.
Losses have been for the year and they amount to £4750 quid ish but if I had sold at the right the and not for greedy I would have been 2k up! Hopefully Logp will bring me a decent amount in the new year. Believing within Three months :)
The upside on this is significant, I think the market hasn't identified its true potential after yesterday's RNS. 20% will put this company in considerable profit.
Brandon hill who are a major shareholder put a broker estimate on Barryroe field of 11p for the share price ! initial phase 6p and further 5p for development - see website for broker notes ;-) happy days peeps.
I wonder if that's what they are planning to do - sell the partner a share or all of our % - so we have a free carry? Now that would be exciting ! ;-)
Multiples of our current $15m market cap I would imagine!
I wonder if we would sell our stake to the farm in partner ? If we did what would be get for it ?
nice ! You think we will follow in the new year ?
10% UP
Well I recon we might tick up soon :-) check out those £5k buys someone is buying up ...
PVR on the move up, Almost ALL BUYS
Those days are gone, but even if we get $1-$5 per barrel, this is still $70m - $350m worth. Stupidly good value currently. Was thinking of jumping in Premier ahead of year end results, but jumped onto this instead. Hold tight and collect your profit guys and girls. I jumped in at $2.05 yesterday - a bit high but still very comfortable at this price.
1.664 to buy and 1.668 to sell! very werid!
I will be buying these all day at mcap of £8m ;-)
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Not for the feint hearted
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Yeah MMS and their games ! They must need shares
Seems to be moving. Hopefully we’ll follow
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http://www.alignresearch.co.uk/oil/providence-resources-fabled-barryroe-farm-in-finally-in-sight-first-thoughts/ PROVIDENCE RESOURCES – FABLED BARRYROE FARM-IN FINALLY IN SIGHT? FIRST THOUGHTS…
When oil was at $100 plus per barrel, assets in the North Sea were exchanging hands at $10-15 per barrel of proven assets. LOGP has 70 million barrels valued at about $.15 per barrel. I imagine in this farm in LOGP will give away 10% or half its share in the asset in return for some cash to keep the company going and a free carry on this multi well campaign. What is there not to like. Very under valued.
Share lift as Providence enters talks to sell Barryroe stake Providence did not name the partner it is in talks with to sell the stake Charlie Weston December 29 2017 2:30 AM Oil and gas explorer Providence Resources has entered exclusive talks to sell a stake in its Barryroe oil prospect off the coast of Cork. The announcement sent its shares higher. Providence did not name the partner it is in talks with to sell the stake. But the company said in a trading update that it has been working on plans to drill an appraisal well and it expects to issue an invitation to tender early next year for the procurement of a drilling unit. CEO Tony O'Reilly said that it has granted a period of exclusivity with an unidentified party to take a stake in the prospect, or what is known in the industry as a farm-in. Mr O'Reilly said the move could lead to a "multi-well programme at Barryroe". Providence owns 80pc of Barryroe and Lansdowne Oil & Gas holds the remaining 20pc. The companies involved stated they were "pleased to confirm the Barryroe partners have now entered into a period of exclusivity with a potential farminee in order to conclude contractual negotiations, having reached provisional agreement on key commercial terms for a multi-well programme at Barryroe". However, Providence warned that there is no certainty that the current talks will lead to a deal. Barryroe has more than 300 million barrels of recoverable oil. https://www.independent.ie/business/irish/share-lift-as-providence-enters-talks-to-sell-barryroe-stake-36443216.html