Davy value at 17.9p1 Dec 2020 17:12
Agreement provides route to proceed
The deal remains subject to SpotOn ensuring $166m in funding is in place and state ratification for the farm-in, which may in part explain the lacklustre share price reaction. Nonetheless, the deal provides a route to realise the value of Barryroe for Providence shareholders. In a recent report we pointed out that the funding route was materially different than previously and that the addition of carbon capture and blue hydrogen added an extra attractive dimension to the project. At a current oil price of c.$45 per barrel, we valued the Barryroe venture at 17.9p per share.