Member Info for Manyana

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?

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.

How could he be dragged out and dumped on the kerb if he is still acting as a consultant to them until the end of the month?

Furthermore, who dumped him? You have to have a quorum of directors to do that and Providence had only two do that is a stale mate.

As I said before, Linn retired from AFREN in December prior to O'Reilly resigning from Providence so it is clear he was offered the job in early December and I suspect he has come with the possibility of doing a deal with Fosun as he has still retained his directorship of Roc Oil (Malaysia) Pty ltd and while it says "Malaysia" it is actually based in Australia and Fosun bought ROC in 2014 and it says "Fosun also purchased Australian oil company Roc Oil, its first acquisition in the petroleum industry."

So you have Fosun and ROC both of which are big in the oil industry and Linn is a director of Roc Oil (Malaysia) Pty ltd. a directorship he seems to have retained after his departure from Third Energy Onshore at about the same time as O'Reilly announced his retirement from Providence - can hardly be just a coincidence but was surely planned.

The statement that APEC paid $9m is totally untrue. The deal collapsed because the money did not come through.

As for stating that the APEC deal was the reason for O'Reilly's departure has not been proven to my mind. We don't know why O'Reilly left and under what circumstances. According to the accounts he is still the owner of quite a large chunk of shares. Perhaps he was aware that Linn came with a potential deal up his sleeve and the only way he could get any return on his investment as well as on Plunkett's 1.75m shares, is to hand the reins to Linn. Who knows the truth?

As for the Sequa deal, it looked very good on paper and could have succeeded if the oil share price had not tanked and its bond issue had been traken up. Sequa have and have had an association with a shady German company, Sapinda, run by a shady German, Lars Windhorst, who has now renamed his financial group Tennor Holding. Check it out at:

https://www.ft.com/content/b290b9b0-7b05-11e9-81d2-f785092ab560

Sequa's problem was it tried to fund the Barryroe development with Bonds. However, it could not raise the money as the bonds faltered with little or no investment. So how was that O'Reilly's fault?

The APEC deal looked good until that "pain in the rear end" group An Taisce put in a judicial review on the Barryroe surveys. I think this government intervention gave them cold feet and I presume they did not want to fund the Barryroe half of the deal if it could be stymied by the likes of Brid Smith and her rat pack. Would you?

So, to my mind, Providence has been the victim of unfortunate circumstances. Perhaps O'Reilly and his family are a pack of Jonah(s). There is always an element of luck in business. Perhaps Linn will be luckier than the O'Reilly gang. Hopefully, he is.

As a paid up subscriber to The Irish Times I find it annoying that they cannot report facts.

"Apec agreed to fund a $200 million drilling plan. It signed on the dotted line and stumped up the first $9 million. Yet 18 months later, it hadn’t provided any more funding."

When did they stump up the first $9m? They claim it was 18 months ago. A figment of "Cantillon's" imagination whoever he or she may be.This is his pseudo-identity.

Cantillon (1680s-1734)

A man with a profound understanding of how money is made and lost, Kerry-born economist Richard Cantillon (1680s-1734) is a fitting namesake for this long-running column. Since 2009, Cantillon delivers succinct business comment on the stories behind the news.

Brid Smith's bill reduced to dust .

All bills are now crushed following the declaration of an Irish general election.

So I am happy to say that both the bill and the judicial review are now dust along with all the other bills not passed.

Hopefully, Smith and her kin will not get elected and sense will prevail.

Could we have another Chinese partner?

According to Alan Linn's profile from Providence announcement of him as the new CEO it states he is currently a director of ROC Oil (Malaysia) Pty Limited. He was also in 2011 CEO of ROC.

https://www.hartenergy.com/news/alan-linn-appointed-ceo-roc-oil-89976

In 2015 ROC was taken over by Fosun International of which it is delisted but is still part of it Fosun and trades as .

In 2018 (if it is to be believed, Fosun earned 109,351,640,000 renminbi which equates to $15,863,151,343.55. Fosun also took over Wolverhampton Football in 2016 and has invested millions, getting them promoted to the Premier Division.

So through this link of ROC, of which Alan Linn is still a director of one of its subsidiaries, I wonder if he has come in to facilitate a deal between Providence and Fosun. After all Fosun is rolling in money if it could generate $15billion revenue in 2018.

A tie up with Fosun to develop Barryroe (and they certainly have the money) or perhaps a buy of the company would not be the worst thing that has happened to us.

"To sleep, perchance to dream?"

Obviously the price was struck at which he could have bought the shares and he cannnot exercise the first option for a year so he has that period to prove himself.

Furthermore, we have not been told what his salary will be. Given the parlous state of Providence's finances I presume he is on a relatively low salary and these share options will be the bunce if he can get the steamroller rolling.

If he had bought them rather than options his 15m at 4p would have cost £600,000. Spread over three years that is the equivalent of paying him £200,00 a year which is far less than O'Reilly's salary which everybody kept moaning about.

Yes. Technically Providence's deal was with APEC but the whole point was the funders, in conjunction with APEC, were going to drill 7 wells at their cost. While the wells were being drilled there were ancillary costs which had to be paid such as transport to and from the drill, well excrement which had to be disposed of probably, like Druid at Ringaskiddy, service boats and since Providence was on hand it was to be they who were going to supply these services.

But because Providence did not have the money, it was agreed that an extra sum of $9m would be made available to Providence at a rate of 5%+Libor while the surveys were undertaken and when drilling was due to start Providence would receive another $10m to cover the ancillary costs of the drilling again at the same borrowing rate. But this money was coming from the funders and not from APEC. Their job was to act as gamekeeper, if you like to make sure the lender's money was being properly used.

Then you had the ship which was supposed to do the survey and the drilling which was the COSLInnovator. But it had been hanging around so long because of the first stupid judicial review by An Taisce which put the project back nearly a year it was hired out in Spring 2018 to Lundin Norway on a long contract to work in the North Sea.

So who is to blame for this fiasco? The Irish "green pack" are as guilty as any. If they had not called for the first judicial review the chances are all of this would now be well on its way. Than goodness they decided not to call for another judicial review when the second survey approval was given.

So who actually knows what the current legal situation is but perhaps our new CEO is a dour Scot and can put some structure on something and remain focused on one thing unlike O'Reilly who had the habit of running around at times like a headless chicken spending money willy-nilly. After all, in 2012 after he raised $100m from selling only 13.1m Providence shares he promised he would use the money to develop Barryroe. Did he? No!! he frittered it away on a number of duds.

https://www.rte.ie/news/business/2012/0402/315807-providence-raises-100m-in-share-placing/

Remember, of course, that was a 1:10 share ratio compared to today so it would translate into 131m shares at current rates.

At least the share price has shown some life yesterday and today. Hopefully it will continue over the weeks to come.

Ps200306,

Just a point re DCCAE. Why has it updated all the other references to Providence holdings and has still left 50% equity of EXOLA to APEC?

For the equity to come back, EXOLA must sign something like a CREST transfer which it would appear it has not done. But, by the same token, it would appear that the management has put EXOLA out to grass and created it once again as "Active" but "Dormant" even though APEC own 50% of a dormant company.

As the saying goes "50% of nothing is nothing".

Perhaps this is too subtle for you to understand. You write "Manyana, for someone who keeps an eagle eye on the news you do talk such carp. Providence's funding agreement was with APEC, nobody else."

Totally wrong. APEC were nothing more than a conduit between a group of funders in China for the development of Barryroe. Who the funders were/are we still do not know but obviously their money was "hot" or "shady" and did not get through.

The last update on the deal stated by Providence on 8th July 2019 as follows;

"Providence has received a HSBC remittance notification dated July 5, 2019 from APEC’s funder for the transfer of US$ 10 million in favour of Providence’s bank account in Dublin with a payment date ofJuly 9,2019.Of the US$ 10 million, US$ 9 million is to cover EXOLA front-end and pre-drill costs with US$ 1 million to cover APEC costs. Therefore,a backstop extension to July 10, 2019 has been agreed with APEC to allow for the receipt of funds. A further update will be provided in due course."

It specifically states that the money was coming from "APEC's funder" and not from APEC. In fact the payment of $10m included a back-payment of $1m to APEC.

The question is, therefore, who were the "funders" as it is clear the money did not get through because of them and not because of APEC. The chances were that they were some shady crowd but we have never been told who they were and whether they were legitimate.

Obviously if Providence got the message from HSBC it also identified who the funders were but O'Reilly never told us. And we still do not know the status of the transfer, where it is and what redress has been taken if the money is "hot".

So APEC were never more than a conduit between Providence and the Chinese (whoever they were) and thus no money actually passed through APEC with the supposed destination of Providence's Irish bank account.

Article in Examiner quotes Plunkett saying "Partner or More Funds". Otherwise quite positive article.

https://www.irishexaminer.com/breakingnews/business/providence-resources-gets-share-price-boost-as-new-ceo-unveiled-974559.html

Article makes the same mistake saying "Providence ditched Chinese consortium APEC Energy as its Barryroe partner after the Chinese group’s continued failure to produce €8m in promised project funding." APEC did not fail to produce the $10m. It was the consortium who failed. The logistics was consortium to Providence of $10m and then Providence $1m to APEC.

And I still say APEC are somewhere in the loop as the DCCAE has not acknowledged the return of the 50% equity in EXOLA to Providence. However, it is interesting that Providence has taken back operatorship of Barryroe away from EXOLA which could be a move to exit APEC. After all, EXOLA is a shell owned by Providence into which they put Barryroe so I presume they could take Barryroe out just as easily leaving APEC with 50% of a shell which is useless.

Have a read
https://www.ftadviser.com/2016/03/10/training/adviser-guides/exploring-various-tax-advantages-of-aim-39jwmpxHDbnkGM6egBVOEK/article.html

have a red

Of course I am. And my average price is peanuts as I have been buying both Providence and Lansdowne since forever. And they do not need to go to any great value for me to make a killing as I hold hundreds of thousands of both that I have bought over time at peanuts.

But you have to treat Providence like a court case and ask would you do things the way they have done them.

Without investment Providence and Barryroe will wait until somebody takes them over for a song and we the shareholders will be shafted. Can you tell me where the money is coming from to develop Barryroe? And why is APEC holding on to its 50%? Perhaps it is going to hand it over to CNOOC (Nexen). They are now sitting on their hands after Iolar came up dud.

I still say this resignation by Tony O'Reilly is not what it appears to be. Here is the terms of his contract from the accounts.
"Mr Tony O’Reilly has, through Kildare Consulting Limited, a company beneficially owned by him, a contract for the provision of service to the Company outside the Republic of Ireland effective 1 April 2017. The amount paid under the contract in the year ended 31 December 2018 was €426,075(2017:€606,930). The contract was renewed 1 April 2019 and is of two years duration and is subject to one year’s notice period".

"So the contract was renewed 1st April 2019 and is of two years duration is subject to one year's notice period". So why did he just walk away on 6th December? Why is he at least not working out his notice period? There can be only the following reasons. Either he has been caught doing something illegal or he has got a better offer or there is a solution to Providences issues with Barryroe. And subject to the contract he is owed nearly €1m which the company is not, I believe in a position to pay him but could perhaps pay him off in options if he thought Barryroe was going to come good under new management.

It does not take a genius to know that what he did was not in line what his terms of what his employment contract said they were. So why?

I thought today's appointment would clarify that, but it hasn't unless we are now waiting for further explanations.

Just a final point.

If Linn comes in and does nothing for a year, Providence will have to relinquish 50% of Barryroe under the terms of the SEL terms and if it goes another year they will have to relinquish the lot.

So, sitting on his hands is not going to be the best approach if he wants to hang on to Barryroe.

It is possible the vultures are sitting out there waiting for this to happen so they can get it for a song.

So you think Plunkett and McCoss got together and forced O'Reilly to resign as there are only three directors after they ditched all the other dross back a few months ago. So why then did it say "Tony leaves by mutual and amicable agreement" and why has he agreed to stay on until the end of January? And who is paying his salary for the two-year rolling contract which costs the company 2 x €350k which means the company has no money to pay him and is therefore broke.

No. For some reason, O'Reilly has decided he was not able to raise the money to develop Barryroe so he was passing the buck to somebody who could and that somebody should have been the subject of today's announcement but clearly isn't. All we got was more of the same.

Alternatively, of course, it is possible there is a move to invest in the development of Barryroe and all they want for the moment is a CEO who is a stooge who will do whatever the investor wants even selling the company from under our feet.

And as I have said, will somebody prove to me that APEC have gone away which I don't believe they have as they are still registered under the DCCAE site as holding 50% equity in base Barryroe and now Providence are the operator. When equity changes as happened when Total gave back its interest in 2/14 which Providence has now relinquished and is up to date so the fact it says APEC owns 50% is the current legal status of Barryroe without the extra added area.

So how do you mix all that together and then tell me what was the point of appointing Alan Linn as the new CEO without a penny for development of anything and what is he going to do differently that can clean up Providence.

I still can't see what advantage appointing Alan Linn has when compared with the removal of O'Reilly.

O'Reilly did not have to go as he controlled the business so he could not be voted off so why did he jump? I am sure it was not a fit of pique? Or did they uncover some dasterdly deed that might have put him in jail but have not told us?

Since Linn does not bring any obvious skills that O'Reilly did not have, other than perhaps a big mouth, what has been achieved with this replacement?

Any suggestions??

Yes, price holding steady but what would it have been if he had come bearing gifts such as the funding for Barryroe?

How about 20p.

Dual company with registrations in London and Dublin.That is why it has dual stock market listings. Here is the UK one.

https://beta.companieshouse.gov.uk/company/00860832

You will note it was incorporated in 1965 -ah those were the days - is active and its accounts are fully up to date re London.

In fact, having two stock market listings is not great because holders who have LSE:Aim shares and a single listing can normally cash them CGT free outside of an ISA after two years as long as they are not dually listed. Providence Resources PLC which is Irish trades on the Irish Euronext exchange which took over the Irish exchange in 2018 probably stops this because it is a second listing.

Perhaps the left hand does not know what the right hand is doing.

So which one does he work for? Take your pick.

This is building up like Robin Hood's merry men.

Digging a bit deeper you find more links between Lynn, Tullow, Third Energy and Boru.

First of all, this gang running these companies were, at one time, employed by Tullow and if you look back at Third Energy and its names in the past you find it was once called Tullow UK Gas Ltd. And if you look at its previous directors you find Tom Hickey who is in Boru Energy with Aidan Heavey.

Furthermore, Lynn retired from Third Energy on 10th December which I presume was a prelude to joining Providence. Why has it taken so long for him to be announced as the new CEO of Providence? New financial year, perhaps.