The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Bank of America are expecting oil prices to rise by the fastest rate since the 1970s over the next three years. That really would be perfect timing for Providence.
https://oilprice.com/Energy/Oil-Prices/Bank-Of-America-Expects-Fastest-Oil-Price-Rise-In-30-Years.html
With oil prices close to 70 dollars a barrel now a merger between Spoton , Providence and Bentley would be a great fit, not to mention a nice mix of oil from the two fields.
Thank you very much for posting the article JONO. I am wondering if Part III should read " The odds of the bond been put in place have increased." Just basing it on the previous comments that with the vaccine rollout, economic recovery and oil prices increasing.
Great find Zephra. Really great read. Hopefully the details will be picked up by the press here in Ireland and the UK.
Hopefully Deputy Denis Naughtons proposal for carbon capture will be accepted.
That is so true
All news today. The Irish Offshore Operator's Association tweeted this article an hour ago with this line: " Ireland cannot survive a single day without a steady gas supply", says Alan Linn, chair of the Irish Offshore Operator's Association. Article behind a paywall.
https://www.independent.ie/opinion/comment/the-days-when-gas-fired-our-imagination-and-brought-wealth-40060444.html
We are now the seventh country to ban future oil and gas drilling. Like Ireland all other six countries allow existing licences to continue. Denmark being a case in point, phasing out fossil fuel extraction by 2050. We could live with that!
https://www.theguardian.com/business/2020/dec/04/denmark-to-end-new-oil-and-gas-exploration-in-north-sea
Hopefully Eamon Ryan will be asked by the press if he is going to allow existing licenses go ahead. It is the most relevant question as he is the leader of the Green Party.
The big problem with Fracked gas that is then transported as LNG is that its carbon footprint is at least six times that of natural gas
I think Biden will keep oil and gas on stream in a transition period, just like Ireland and other countries around the world. Barryroe will be developed with Climate Change in mind and oil and gas will play a huge part in energy security for decades to come. Barryroe secures energy security for the Irish government and helps create a lot of revenue for the government. Listening to the news today, they mentioned that restaurants will stay closed until at least June of this year. Can you imagine the amount of money it is taking to keep the country going at the moment. It makes the crash of 2008 look like Christmas. There is so much going on, that it is a ideal time for the Green Party to give the go ahead to Barryroe, as the announcement will be lost in a flood of bad news.
Our man on the inside.
If we get the bond away and government approval I imagine that you would see at least 4 pence for Lansdowne and 12 pence for Providence. Both things happening would really put a solid floor under both share prices. I imagine that prices might even be a lot higher, taking into account that securing the bond and getting government approval are complete game changers for both companies. Needless to say the flip side of the coin is even more dramatic. News that the bond has failed and government approval is not going to happen. Game over. But if we do secure one of the two in the new year, it really puts a shove on the other. The share price should then settle down for the year and of course with finance and government approval sorted there is always the hope that someone might make a bid for Providence but more likely Lansdowne.
It was reported in the Sunday Business Post a couple of weeks ago that Eamon Ryan is going to sign off on Barryroe, which is good news. Hopefully it will be next month. If the bond is sorted next month as well you will be in the money for sure. Best of luck.
Hopefully this announcement by The European Council will make signing off on Barryroe easier for Government.
On Friday, the European Council, which brings together the EU’s 27 national leaders, adopted a new greenhouse gas reduction target for 2030: -55% from 1990 levels, up from the previous target of -40%.
In their conclusions, the leaders reaffirmed that it will be up to each member state “to decide on their energy mix and to choose the most appropriate technologies to achieve collectively the 2030 climate target, including transitional technologies such as gas.”
https://www.euractiv.com/section/energy/news/gas-wins-recognition-as-transitional-technology-to-climate-neutrality/?s=03
A little bit of encouraging news:
https://oilprice.com/Energy/Crude-Oil/Offshore-Oils-Dramatic-Comeback.html
Nice to see another 200 Million barrels come online at the Snorre oilfield in Norway. Apparently that is a lot.
Meanwhile, in the North Sea, Equinor is pumping more than 400,000 bpd from the Johan Sverdrup field, nearing 500,000 bpd as of last month, despite the continued demand slump. The Norwegian company is also boosting production at the Snorre field, unlocking an additional 200 million barrels of recoverable reserves and extending the field’s life to 2040. Indeed, Equinor is fighting natural depletion and fewer new discoveries. But it is boosting production amid lower demand for oil both domestically and internationally, and forecasts for the chronification of this lower demand.
It is great news that Providence has secured a farmout for Barryroe, but investors will wait until the agreed funding is in place and the Irish Government give the approval for the Farmout out agreement.
The farmin is conditional upon SpotOn confirming that a minimum of US$ 166 million in funding (the Agreed Funding), for the Early Development Programme (EDP) is in place and that Irish government approval for the Farmout agreement has been received.
Article in today's Irish Examiner. It should be announced on Monday, but a RNS stating that things have being extended for a couple of weeks would not be too surprising, or too damaging really. However an extension for a month would be damaging
https://www.irishexaminer.com/business/companies/arid-40091717.html
Since the departure of Tony O' Reilly Jnr, the fortunes of Providence Resources have taken a turn for the better. The revival has been led by Pat Plunkett (ex chairman of Tullow Oil) and new CEO Alan Linn. Instead of getting involved spending hundreds of millions of dollars wild-catting in the Atlantic margin, Linn has focused on Providence's discovered Barryroe field only 50 miles offshore Cork, in 100 meters of water. Plunkett and Linn have decided on a low-cost, full farm-out strategy and are currently working on a deal with SpotOn Energy and its Norwegian partners, who have the drilling equipment and funds to fast-track this oilfield and have it in production within three years.
Lynn confirmed that, even before the costs associated with drilling and production went the floor in the current pandemic, Barryroe had a full cost production break-even figure of $25 a barrel of oil and very likely much less than this given the current very low price of jack-up drill rates and drill ships. With an estimated 350 million barrels recoverable, this could leave Barryroe, even at current depressed oil prices, delivering a net profit of five billion dollars.
With the shares down at 8 cent, Providence is capitalised at just 70 million euros and so the shares, as with Tullow, would appear to be significantly undervalued.
Moreover, in this case, there is little or no downside evident, with the Norwegians set to carry the full development cost.
You are right Rocklawn. John O' Sullivan has set up his own company in this regard. You never know, we might see him again.
https://ie.linkedin.com/in/john-o-sullivan-47a568a6