Providence resources released a pre closing statement this morning. The statement provided a general overview of the company’s Irish offshore assets. We were looking for an update on Barryroe farmout and the company’s forward exploration programme. <p>

With respect to Barryroe farm out, the statement stated that it has commenced the farm out process and is in negotiations with a number of parties. There was no change in the forward programme with the Spanish Point appraisal well in Q214 being the most significant exploration event. <p>

Given the independently audited volumes at its Barryroe field, we view Providence as significantly undervalued at current levels and see the completion of the Barryroe farm out as a catalyst to cystalise that value and help close the valuation gap. The Spanish Point appraisal well, if successful, will add 42p per share to risked valuation.
<p><h5>Muna Muleya</h5>


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